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: 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.
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. [coinbase]
