Coinbase Expands Banking Services by Letting Users Deposit Paychecks Into Their Accounts

Bitcoins placed beside Coinbase App on iPhone, illustrating one of the largest Bitcoin providers, photographed in Cologne, Germany, 14th of April 2021.
Movus / Getty Images

Coinbase has been in the news lately for getting on the wrong side of both customers and regulators, but the cryptocurrency exchange made a different kind of headline on Monday when it said users in the United States will now be able to deposit their paychecks directly into their online accounts.

See: Best Cryptocurrencies to Invest In for 2021
Find: 25 Best Startup Business Ideas to Make Money in 2021

The announcement appeared on a blog by Max Branzburg, Coinbase’s vice president of product. He said the feature will be launched in the “coming weeks” but did not specify an exact date. Customers can get paid in crypto or U.S. dollars and choose any percentage of their paychecks to deposit.

“With direct deposit, customers can more easily access our crypto-first financial services and be ready for any trade or purchase,” Branzburg wrote.

He also announced that starting this week, holders of the Coinbase debit card will be able to spend U.S. dollars as well as crypto while earning crypto rewards. Another new feature is that customers can now earn new rewards in three coins: 1% back in Dai (DAI) or 4% back in Amp (AMP) or Rally (RLY). The card already allowed them to earn 1% back in Ethereum (ETH), Dogecoin (DOGE) or Bitcoin (BTC), or 4% back in The Graph (GRT) and Stellar (XLM).

Building Wealth

See: Top 10 Most Expensive Shoes Ever Made
Find: How to Use The Child Tax Credit Direct Deposit Portal

The launch at least temporarily takes the focus off of a recent string of bad news, including customer complaints that frequent transfers from their bank accounts to Coinbase are time-consuming and inconvenient, CNBC reported.

That’s not the only complaint lodged against Coinbase, which went public in April and boasts more than 68 million users in over 100 countries. As previously reported by GOBankingRates, the platform has received thousands of complaints in recent years for a pattern of account hacks where users have reported money vanishing from their accounts. Customers have also griped about poor customer service when they try to contact Coinbase support.

See: 29 Careless Ways Retirees Waste Money
Find: Stimulus Update — States Give Out Thousands of Bonus $1,000 Checks — Will You Get One?

Meanwhile, earlier this month, Coinbase went into defense mode against federal regulators when it was threatened with legal action by the Securities and Exchange Commission over the exchange’s proposed loan product, Coinbase Lend. As GOBankingRates reported, Coinbase received a Wells notice from the SEC indicating that it intends to sue the company over the product.

Coinbase CEO Brian Armstrong countered by accusing the SEC of “sketchy behavior.”

Building Wealth

More From GOBankingRates

About the Author

Vance Cariaga is a London-based writer, editor and journalist who previously held staff positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal and Business North Carolina magazine. He holds a B.A. in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting earned awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. In addition to journalism, he has worked in banking, accounting and restaurant management. A native of North Carolina who also writes fiction, Vance’s short story, “Saint Christopher,” placed second in the 2019 Writer’s Digest Short Short Story Competition. Two of his short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. His debut novel, Voodoo Hideaway, was published in 2021 by Atmosphere Press.

Best Bank Accounts of May 2022

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.