Coinbase Will Allow Direct Deposits Into Accounts

The top U.S. cryptocurrency exchange will allow clients to buy digital assets fee-free if they set up direct deposits.

Leading cryptocurrency exchange Coinbase announced on September 27 that it will allow customers to have all or part of their paychecks directly deposited into their accounts.

Doing so will allow them to purchase any of the exchange’s more than 100 cryptocurrencies without a transaction fee.Saying “the future of payroll is coming,” Coinbase senior director of product Prakash Hariramani said in a blog post its customers can “get paid in crypto or in U.S. dollars,” gaining “instant and free access to the cryptoeconomy.”

Hariramani positioned the new offering as a way for customers to avoid frequent fund transfers to Coinbase, which he said many customers find to be a “time consuming and inconvenient” process. Setting up the direct deposits can be done in either the Coinbase app or through an employer’s payroll department. 

Among the benefits Hariramani said direct deposit offers are setting up regular, recurring purchases of cryptocurrency; purchasing “interest-yielding assets” like stablecoins USDC and DAI; funding Coinbase Card Visa debit cards; or simply being ready to make short-term trades.

In addition, he added, Coinbase is working on signing up companies that wish to offer employees the ability to be paid in cryptocurrency.

Coinbase Card Expands Rewards

Coinbase also announced on Monday that it was expanding the “crypto back” rewards offering on its Coinbase Card Visa debit card. Starting this week, Coinbase Card holders can earn rewards for spending not just crypto but also U.S. dollars from their accounts, Coinbase vice president of product Max Branzburg said in a Coinbase blog post Monday.Mirroring “cashback” credit card rewards programs, Coinbase Card holders can currently earn 1% back in Bitcoin, Either or Doge — as well as 4% back in Stellar or The Graph.

That list has been expanded to include 1% crypto back in DAI or 4% back in either Amp or Rally.

Beyond that, all U.S. customers (excluding Hawaii) will be able to sign up for a Coinbase Card in the fall.

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