Coinbase Enables Users to Deposit Paycheck into Their Account

This feature will be available in the coming weeks. 

Photo: Bitcoin company Coinbase sets date for IPO by Marco Verch under Creative Commons 2.0

Coinbase, a cryptocurrency exchange platform, wants to offer traditional financial services. To start, it now enables users to deposit their paychecks into their Coinbase online accounts. 

Do More with Crypto

On Monday, Coinbase stated that its US customers will soon have the ability to utilize the platform’s direct deposit service for a percentage of their paycheck. 

Users can hold their money in dollars or they have the option to transfer the money into cryptocurrencies without any fees. 

“As customers look to the cryptoeconomy to meet their everyday financial needs, they need a way to easily make purchases with crypto and earn yield on their portfolio.” – Coinbase

It means that when users choose to deposit a part of their paychecks into their Coinbase accounts, the money will be ready for any trade or purchase. 

The company wants to become the most trusted crypto-first financial service with 60 million users. 

Coming Weeks 

The feature isn’t available yet, but it’ll be in the coming weeks. But the launching of this search comes after its users criticized that it’s inconvenient and time-consuming to use the platform when it comes to transferring money from their bank accounts. 

With the feature, the platform will be using an FDIC-insured bank partner. However, it failed to specify which bank to use. For ints rewards card, it uses MetaBank. 

But this upcoming feature of Coinbase isn’t unique to the platform. Other finance apps have already enabled users for direct deposit. Chime and SoFi have already offered the service as part of their products. PayPal now allows users to deposit their paychecks. 

Regulatory Requirements 

Coinbase is introducing new features to its platform as it tries to fight strict cryptocurrency requirements. Last week, it halted its plans to introduce an interest-earning product. 

The suspended update was supposed to enable users to earn 4% of the yearly percentage by allowing the platform to lend the funds to borrowers. The company also stopped its waitlist for the product. 

The reason for Coinbase’s decision to stop the feature was that the SEC threatened to sue the company over its high-interest lending product. Coinbase’s CEO called the threat sketchy. He added that the SEC refused to meet with Coinbase and the agency failed to explain the reason for the threat. 

SEC Chairman Gary Gensler wants more crypto oversight. He asked Congress for more resources to make sure that the agency can fully protect investors. He argued that digital assets traded must be registered with the SEC. 

With all of its features, the platform has become a vital financial app. Thus, it makes sense for the company to introduce the new service to bolster usage. 

The platform will soon change its tabs in its mobile app. Four new tabs will be added. With the upcoming feature, users may end up using the app more than they use their bank app. But only if they trust Coinbase more than they trust their banks.