San Francisco-based crypto exchange Coinbase is gearing up to launch a feature that allows US users to deposit paychecks into their online accounts directly. The company unveiled this news through a blog post on September 27, noting this feature will go live in the next few weeks. Through this service, the exchange seeks to help its users make regular crypto trade, spend on their Coinbase cards, and earn crypto rewards seamlessly.
According to the blog post, this service will let users deposit any percentage of their paycheck. Per Coinbase, this feature is the future of payroll, and it seeks to meet the needs of clients that find making frequent transfers from their credit cards into their Coinbase accounts inconvenient and time-consuming. By depositing paychecks into Coinbase accounts, customers can bypass these difficulties and earn interest on their income.
Apart from this, they can earn crypto rewards through their Coinbase cards. Moreover, users will enjoy zero transaction fees while depositing funds into their online accounts. By adopting this service, customers will have an option to get paid in any of the 100+ crypto assets that Coinbase supports, as well as US dollars.
Per Coinbase, this flexibility allows users to either make recurring crypto purchases or earn interest on their income while staying ready to trade or buy products and services through their Coinbase cards.
A simple setup
The exchange added that interested users can activate the direct deposit feature within the Coinbase app. The activation process involves clicking direct deposits in the settings, following instructions, and selecting the current payroll company or employer. Coinbase will then update a user’s paycheck allocation automatically.
For users that want a personalized setup, Coinbase offers a manual process of setting up direct deposits. To achieve this, the exchange provides users with the information they need to share with their HR department or employer payroll website. From here, customers can customize their direct deposit preferences as they see fit at any time in the settings.
To ensure seamless onboarding, Coinbase said it had partnered with several companies to let their employees begin making direct deposits. Among the firms that the exchange has joined hands with include Fortress Investment Group, M31 Capital, Nansen, and SuperRare Labs.
Coinbase also said that it had partnered with an FDIC-insured bank to support the direct deposits. However, it did not disclose the name of the bank.
As for the US dollar to the crypto conversion process, the exchange reiterated that it would not charge a fee. However, it cautioned that a spread applies when buying or selling cryptos, and this might result in less crypto than a user’s paycheck. The exchange noted that other standard fees might apply. Nonetheless, Coinbase noted that it would share such information during a Coinbase Card sign-up.
This news comes as Coinbase continues rolling out new features to make crypto mainstream. Before the payroll feature, the exchange tried launching Coinbase Lend, a lending feature that would let crypto holders earn interest by letting the exchange lend their funds. However, the US Securities Exchange Commission (SEC) notified Coinbase that it would file a lawsuit against it if it launched this product. In response, the exchange dropped these plans to remain compliant.