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Coinbase is also expanding the app’s capabilities by adding four new tabs to its mobile version. The new tabs are “Assets”, “Trade”, “Pay” and “For You”.
Cryptocurrency exchange Coinbase will now allow users to deposit their paychecks directly into their accounts. In an announcement on Monday, the exchange revealed that their users in the United States will soon be able to deposit a specified percentage of their paycheck which they can choose to keep in US dollars or convert into a cryptocurrency of their choice at no additional cost. For the exchange, this is a step further in providing conventional financial services in addition to the crypto services it is known for.
Commenting on this latest development, Coinbase Vice President of Product, Max Branzburg had this to say:
“With direct deposit, customers can more easily access our crypto-first financial services and be ready for any trade or purchase. We’re determined to deliver the most trusted full suite of crypto-first financial services to our 68 million users.”
This new feature is in response to concerns raised by the exchange’s users. Coinbase reveals that users found the frequent transfers between their bank account and Coinbase account “time-consuming and inconvenient”. A yet-to-be-named FDIC-insured bank is expected to work with the exchange for direct deposits. It is worth noting that Coinbase is in partnership with MetaBank for its rewards card feature. Through a partnership with Marqeta, they introduced a debit card last year. The card can be used with services like Apple Pay and Google Pay. Users can simply choose which of their wallets to make payments from. Upon purchase or payment for a product or service, the crypto will be converted to US dollars at a 2.49% transaction fee.
With the introduction of direct deposits, users will be able to make payments and purchases without any fees.
The company is also expanding the app’s capabilities by adding four new tabs to its mobile version. The new tabs are “Assets”, “Trade”, “Pay” and “For You”.
This new feature comes as Coinbase continues to face regulatory pressure and declining stock prices. The company went public via a direct listing in April and has seen stock prices plummet about 40 % since then. Just this month, the United States Securities and Exchange Commission (SEC) threatened to sue Coinbase over the high-interest lending product “Coinbase Lending” it was planning to introduce. Coinbase CEO Brian Armstrong described the SEC’s actions as “sketchy”.
The SEC, on the other hand, is intent on increasing oversight in the cryptocurrency industry. In his opening remarks to the Senate Banking Committee, the commission’s Chairman Gary Gensler said the SEC needed more resources to work on investor protection. He also called on crypto exchanges and projects to “come in and talk” to the SEC.
Meanwhile, fintech company Monneo revealed that it was working with Coinbase to enable payment of invoices in crypto that will make B2B invoice payment possible. The deal has backing from Monneo’s banking partners.