Coinbase, Visa Direct Roll Out Instant Funding Amid Soaring Bitcoin Demand

U.S. publicly-listed crypto exchange Coinbase has rolled out real-time account funding for its customers in the U.S. and Europe amid a fervent market that has witnessed increased trading activity in recent days.

Through integration with Visa Direct, Coinbase users with eligible debit cards can now deposit funds into their Coinbase accounts in real-time, removing traditional delays in transferring money, Visa said in a statement on Tuesday.

It comes as the price of Bitcoin, the world’s largest crypto by market capitalization, soared to just below its March all-time high near $73,700 on Tuesday. Exchanges, like Coinbase, collect revenue from those seeking to speculate on the asset class and typically earn higher fees on rising crypto prices.

With millions of users already using debit cards linked to their Coinbase accounts, the companies said the new functionality allows users to take advantage of trading opportunities more readily.

“Providing real-time account funding using Visa Direct and an eligible Visa debit card means that those Coinbase users with an eligible Visa debit card know that they can take advantage of trading opportunities day and night,” Yanilsa Gonzalez Ore, head of Visa Direct for North America, said in the statement.

In addition to real-time deposits, users can purchase cryptos directly with their Visa debit cards and withdraw funds to their bank accounts without delays.

The new service complements Coinbase’s existing Visa debit card, which is available to U.S. customers. Coinbase launched the card in October 2020, which allows users to spend Bitcoin and other cryptos for online and in-store purchases and convert crypto to cash at ATMs.

The integration with Visa Direct comes just two weeks after Coinbase ended its Paycheck Direct Deposit service, a feature that had previously allowed users to allocate part or all of their paycheck to be paid in crypto. 

Even though complaints poured in from users for the abrupt ending of the feature, the exchange expects to “bring back a better retail direct deposit experience in the future,” it said at the time.

Edited by Sebastian Sinclair