Coinbase to Roll Out Direct Paycheck Payments Service
US-based leading crypto trading platform, Coinbase, will be releasing a functionality that will allow direct payments of customers’ salaries to their accounts on the platform. According to reports, the new functionality will be integrated next week. However, it will only serve US businesses and their employees, the crypto trading platform announced.
Revealing more details on the functionality, Coinbase stated that employees will have the opportunity to deposit as much or as little of their salaries directly into their accounts. Prakash Hariramani, Coinbase’s Senior Product Director, stated on Monday that the functionality will serve customers who intend to use their salaries to purchase cryptocurrencies while evading transaction fees. Customers can activate direct payments using a payroll service supported on Coinbase’s mobile app or via their company’s human resources (HP) department.
Customers to Earn Crypto Rewards from Direct Payments
The functionality, as soon as it is added, will support little or total payments of customers’ salaries. Citing the delay and inconvenience involved in using other deposit methods, especially when frequent transfers are done, Coinbase noted that direct payments will help customers earn crypto rewards faster and more efficiently.
Coinbase has already collaborated with some US-based firms such as Fortress Investment Group for the release of a similar functionality that supports direct payments for employees in the creator economy and financial services. The crypto trading platform had also given a hint on releasing related functionalities. Coinbase further revealed that customers of its custom-made Visa debit cards will earn 4% as cashback rewards but in crypto for holding the cards.
Coinbase Shelves Lend Product
The latest announcement from the trading platform comes on the heels of a recent one in which it informed customers that it will not go ahead with launching its Lend product anymore. Coinbase had been strictly warned by the US Securities and trading platform Commission about the service a week before its launch. Although Coinbase alleged that the US regulator had not given sufficient reasons on why the Lend program should not be shelved.
In its defense, Coinbase had claimed that the Lend product was not an investment note or a security as hinted by the regulator. The US SEC’s order had come with a threat to initiate a lawsuit against the crypto trading platform if it went ahead with the program. Grudgingly, Coinbase backed down noting that it would launch Lend in October after confirming with regulators.
The following week, Coinbase announced that it was scrapping the product. Coinbase also discontinued the waitlist which had received as many as 400,000 sign-ups since it announced Lend in May. Meanwhile, a recent report noted that Coinbase is working on a proposal for friendly crypto regulations which it intends to submit to the US SEC.
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