Employers in the US will soon be able to deposit their employees’ wages straight into their Coinbase accounts, employees will also have the option to deposit “as much or as little” of their paychecks based on the new feature.
Coinbase senior director of product Prakash Hariramani announced in a blog post on Sept. 27 that the exchange would be enabling direct deposits for workers who want to utilize their salaries to buy bitcoin right now with no transaction fees.
Direct deposits can be set up on the Coinbase app through a supported payroll firm or through a company’s human resources department.
Users will be able to deposit “as much or as little” of their paychecks as they wish in the service, which will be available in the next weeks, according to Hariramani.
Coinbase cited “inconvenient and time-consuming” frequent transfers as one of the reasons for the service, claiming that direct deposits will allow users to earn crypto incentives more efficiently and quickly.
Coinbase has already collaborated with US-based organizations such as Fortress Investment Group, M31 Capital, Nansen, and SuperRare Labs to roll out direct transfers for “employees throughout the creative economy and financial services,” with more to come in the months ahead.
The exchange also announced that holders of its branded Visa debit card will be eligible for up to 4% back in cryptocurrency rewards. The announcement comes less than a week after the exchange announced that it will no longer pursue its Lend crypto lending scheme.
Coinbase announced plans to pay partial returns on USD Coin (USDC) deposits at first, but the initiative was scrapped after the Securities and Exchange Commission threatened the business with legal action.