Cryptocurrency exchange Coinbase has announced a plan to roll out a new feature that will enable United States users to deposit their paycheck directly into their online accounts.
In a blog post published on September 27, Coinbase indicated the feature that will be available in the coming weeks would allow customers to make direct deposits for any percentage of their paycheck. As per Coinbase:
“Direct deposit coming soon: customers will be able to deposit any percentage of their paycheck into their Coinbase account in crypto or USD.”
The exchange states that users could also hold their money in fiat or instantly transfer it into preferred cryptocurrencies like Bitcoin at zero cost. The funds can also be used for crypto rewards or spending on the Coinbase card.
The company also indicated that the upcoming new feature is motivated by more users transacting on the exchange through spending, earning, trading, and borrowing.
“Customers can get paid in crypto or US dollars and can choose any percentage of their paycheck to deposit. With direct deposit, customers can more easily access our crypto-first financial services and be ready for any trade or purchase,” the exchange stated.
Eliminating banks in depositing fiat
The feature also seeks to eliminate the need of relying on banks for customers to deposit funds into their accounts. This is after the exchange users complained that regular transfers from their bank accounts are tedious and time-consuming.
Coinbase noted that it is also building the infrastructure to enable companies to pay their workers in cryptocurrencies.
Users who will opt for the feature will be able to create and modify direct payments through a few steps in the Coinbase app. Coinbase can set up an automatic paycheck distribution or provide instructions to enable manual deposits via a company’s payroll system.
The exchange joins other popular fintech platforms to allow users to deposit their paycheck. PayPal and stock trading app Robinhood also allow users to deposit their paychecks directly into the platform.