Coinbase is launching a program for direct deposit of paychecks into cryptocurrencies. PayPal and Robinhood already offer this service in the US.
Coinbase will soon allow U.S. companies to deposit their employees’ paychecks directly into accounts at the crypto exchange. In a blog post Monday, Coinbase Senior Director of Product Prakash Hariramani announced the option. This will allow employees to use their paychecks to purchase cryptocurrencies without transaction fees. For their part, companies can set up direct deposits through a supported payroll company in the Coinbase app or through a company’s human resources department.
Hariramani said users will be able to deposit “as much or as little” of their paychecks as they want when the feature launches in the coming weeks. Coinbase cited “time-consuming and inconvenient” wire transfers as part of the reason for the service, and said direct deposits would offer users a more efficient and faster way to receive crypto bonuses.
Users who opt into this feature can create and modify direct payments in the app in just a few steps. Coinbase can set up automatic paycheck withdrawals or provide instructions for manual deposit through a company’s payroll system. The exchange joins other popular fintech platforms that allow users to cash their paychecks. PayPal and trading app Robinhood also offer to allow users to deposit their paychecks directly to the platform.