How crypto exchanges can turn direct deposits into a fiat onramp
copy gray iconlinkedin graytwitter grey

How crypto exchanges can turn direct deposits into a fiat onramp

March 31, 2022

Cryptocurrency has had quite the story arc. What started as an experimental investment is now used by more than 100 million people worldwide who take fiat money (state-issued currency like USD) to purchase crypto (anything from Bitcoin to meme coins). And crypto exchange platforms are the first stop for every up-and-coming investor ready to turn their dollars into cryptocurrency.

A fiat onramp is an essential component of crypto exchanges because it enables users to purchase cryptocurrency using fiat. With a fiat onramp, anyone with enough money in their bank account can purchase the cryptocurrency of their choice.

While crypto exchange platforms have made it easy for anyone to own digital assets, users still largely rely on using their bank accounts to make a purchase. Is there a way to make this process simpler and more automated?

Enter automated direct deposit switching. It’s an API solution that connects crypto wallet owners to their income or payroll platform, enabling them to automatically fund their wallet on payday. And it might just be the most straightforward fiat onramping solution yet.

What is a fiat onramp?

A fiat onramp is the easiest way for an investor to acquire cryptocurrency using the “real” money (aka fiat) they already have. Onramps are available on crypto exchange platforms, like Kraken or Crypto.com, and sometimes investors can also access them via an emerging network of crypto ATMs.

Fiat onramps aren’t the only way to get cryptocurrency; investors can acquire it through mining or accepting it as a payment method. But newcomers who are just starting out will rely on a fiat onramp. And when they’re done HODLing, investors can use a fiat offramp to convert crypto into fiat currency.

How direct deposit switching works as a fiat onramp

With automated direct deposit switching, crypto exchanges can offer their users the easiest method of purchasing crypto — automatically, as soon as they get paid.

The simplest way for crypto exchanges to integrate a direct deposit switching solution into their platform is by using an API like Pinwheel. It allows investors to connect to their payroll or income platform directly on their crypto exchange apps and input the amount of money they want to deposit into their wallet on payday. For users, the set-up process is easy to navigate and only takes a couple of minutes.

Major crypto exchange platforms like Gemini and BlockFi have already simplified the fiat onramp process with automated investing. This feature allows investors to set up recurring buys using their bank account instead of manually purchasing crypto.

Although this process is convenient, crypto platforms can provide another equally user-friendly option with automated deposit switching. Thanks to this feature, if an investor changes their bank, they won’t need to manually update their payment method with their new bank account information. The funds will be transferred straight from the consumer’s payroll or income platform into their crypto wallet, bypassing the bank altogether (which is something some crypto enthusiasts can get behind).

Crypto exchanges need automated deposit switching to stay competitive

A direct deposit switching solution also has benefits beyond user convenience. For crypto platforms, it creates a single point of connectivity to a consumer’s payroll and income data, which they can leverage to power new products — and this is key in today’s hyper-competitive fintech space.

Major crypto exchange platforms are no longer staying in the crypto lane. They’re launching debit and credit cards, and some even offer loans. The product expansion has led them into the territory of traditional banks and fintechs, where companies are innovating around the clock to attract consumers.

To make things more exciting, some non crypto-native fintechs are moving into crypto trading. N26, a German neobank, announced it’s launching a crypto trading product this year. In the U.S., Venmo released a similar feature in 2021, and Robinhood’s brand new debit card can automatically invest in crypto.

Fintechs and traditional financial institutions have also realized the value of automated direct deposit switching and integrated it into their products. Pinwheel has helped a top 5 neobank increase direct deposit penetration by 20% in the first month alone, and some fintechs have seen increases of up to 75%.

So why is this important? When consumers can easily switch their direct deposit, they’re more likely to transfer their paycheck (or a portion of it) to their new account. As a result, financial service providers can capture a greater share of wallet and perhaps even become the user’s primary bank account.

Crypto exchange platforms stand to have the same benefits from automated direct deposit switching, which increases the likelihood of consumers funding their crypto debit card and using it to make purchases. And with more fiat deposits, crypto platforms can drive more revenue from trading fees.

How Pinwheel powers easy direct deposit switching

Whether they’re using a traditional bank or a crypto exchange, consumers want user-friendly financial services. And automating manual processes is an essential part of that.

With Pinwheel, crypto trading platforms can enable users to update their direct deposit settings in a few clicks and automatically fund their crypto wallet on payday. Our platform protects against fraud by verifying the user’s identity prior to making the deposit switch.

Pinwheel also uniquely enables recurring access, which allows financial service providers to track customers’ direct deposit allocations over time, gain insight into consumer income trends, and understand who else is their direct competitor.

Companies can then use this kind of consumer financial data to inform their strategy, understand what their customers need, and take proactive steps to address those needs.

Ultimately, automated direct deposit switching offers crypto trading platforms an easy fiat onramp solution, setting them up to capture a greater wallet share as cryptocurrency becomes more mainstream.

Always stay up to date

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
View our Privacy Policy   ➔

Up next

How alternative credit data can benefit lenders

How alternative credit data can benefit lenders

Read more  ➔
Tech Spotlight: Implementing your first feature flag

Tech Spotlight: Implementing your first feature flag

Read more  ➔
Pinwheel Welcomes New Advisor, Ethan Yeh, to Advance Pinwheel’s Data Science Strategy

Pinwheel Welcomes New Advisor, Ethan Yeh, to Advance Pinwheel’s Data Science Strategy

Read more  ➔
Tech spotlight: Securing access control across internal services

Tech spotlight: Securing access control across internal services

Read more  ➔
The anatomy and potential of payroll data: Transforming complex data into insights

The anatomy and potential of payroll data: Transforming complex data into insights

Read more  ➔
Beyond the credit score: Propelling consumer finance into the future with income data

Beyond the credit score: Propelling consumer finance into the future with income data

Read more  ➔
Ayokunle (Ayo) Omojola joins Pinwheel’s Board of Directors

Ayokunle (Ayo) Omojola joins Pinwheel’s Board of Directors

Read more  ➔
Conquering conversion: Engineering practices developed to help customers

Conquering conversion: Engineering practices developed to help customers

Read more  ➔
Driving Customer Delight: From implementation and beyond

Driving Customer Delight: From implementation and beyond

Read more  ➔
Pinwheel Supports Open Finance Data Security Standard

Pinwheel Supports Open Finance Data Security Standard

Read more  ➔
How we design Pinwheel to solve real customer problems

How we design Pinwheel to solve real customer problems

Read more  ➔
What is consumer-permissioned data and what are its benefits?

What is consumer-permissioned data and what are its benefits?

Read more  ➔
How payroll data connectivity can help financial service providers in tumultuous market conditions

How payroll data connectivity can help financial service providers in tumultuous market conditions

Read more  ➔
Pinwheel now supports document uploads to supplement payroll data

Pinwheel now supports document uploads to supplement payroll data

Read more  ➔
Brian Karimi-Pashaki joins Pinwheel as Partnerships Lead

Brian Karimi-Pashaki joins Pinwheel as Partnerships Lead

Read more  ➔
Optimizing for conversion with smarter employer mappings

Optimizing for conversion with smarter employer mappings

Read more  ➔
What are super apps and how will they impact financial services?

What are super apps and how will they impact financial services?

Read more  ➔
Increase conversions and maximize share of wallet with Pinwheel's new UX update

Increase conversions and maximize share of wallet with Pinwheel's new UX update

Read more  ➔
Pinwheel announces support for taxes

Pinwheel announces support for taxes

Read more  ➔
Ryan Nier Joins Pinwheel as the Company’s first General Counsel

Ryan Nier Joins Pinwheel as the Company’s first General Counsel

Read more  ➔
The future of enabling earned wage access

The future of enabling earned wage access

Read more  ➔
Deliver earned wage access faster with Pinwheel Earnings Stream

Deliver earned wage access faster with Pinwheel Earnings Stream

Pinwheel Earnings Stream provides the necessary data and intelligence to reliably offer earned wage access (EWA) at scale.

Read more  ➔
Digital transformation in banking in 2022: What it means, trends & examples

Digital transformation in banking in 2022: What it means, trends & examples

Read more  ➔
June product release: Expanded connectivity to employers, a custom experience with Link API and more

June product release: Expanded connectivity to employers, a custom experience with Link API and more

Read more  ➔
Pinwheelie Spotlight: LaRena Iocco, Software Engineer

Pinwheelie Spotlight: LaRena Iocco, Software Engineer

Read more  ➔
Build fully custom experiences with Pinwheel’s Link API

Build fully custom experiences with Pinwheel’s Link API

Read more  ➔
Pinwheel expands connectivity to 1.5M employers

Pinwheel expands connectivity to 1.5M employers

Read more  ➔
Robert Reynolds joins Pinwheel as Head of Product

Robert Reynolds joins Pinwheel as Head of Product

Read more  ➔
Pinwheel obtains highest security certification in the industry

Pinwheel obtains highest security certification in the industry

Read more  ➔
Lauren Crossett becomes Pinwheel’s first Chief Revenue Officer

Lauren Crossett becomes Pinwheel’s first Chief Revenue Officer

Read more  ➔
Everything you should know about the role of APIs in banking

Everything you should know about the role of APIs in banking

Read more  ➔
Open finance: What is it and how does it impact financial services?

Open finance: What is it and how does it impact financial services?

Read more  ➔
How automated direct deposit switching benefits traditional banks

How automated direct deposit switching benefits traditional banks

Read more  ➔
Pinwheel Secure: Authentication optimized for market-leading conversion

Pinwheel Secure: Authentication optimized for market-leading conversion

Read more  ➔
Pinwheelie Spotlight: Elena Churilova, Software Engineer, Integrations

Pinwheelie Spotlight: Elena Churilova, Software Engineer, Integrations

Read more  ➔
May product release: Localization and downloadable pay stubs

May product release: Localization and downloadable pay stubs

Read more  ➔
How a payroll API can level up lenders and renters

How a payroll API can level up lenders and renters

Read more  ➔
The power of payroll APIs in consumer finance

The power of payroll APIs in consumer finance

Read more  ➔
Data Talks: Pinwheel’s Fortune 1000 coverage and top employer trends

Data Talks: Pinwheel’s Fortune 1000 coverage and top employer trends

Read more  ➔
April product release: Enabling connectivity to time and attendance data for 25M US workers

April product release: Enabling connectivity to time and attendance data for 25M US workers

Read more  ➔
Tech spotlight: Increasing engineering momentum at a systems level

Tech spotlight: Increasing engineering momentum at a systems level

Read more  ➔
How crypto exchanges can turn direct deposits into a fiat onramp

How crypto exchanges can turn direct deposits into a fiat onramp

Read more  ➔
March product release: Time and attendance coverage and Pinwheel's new online home

March product release: Time and attendance coverage and Pinwheel's new online home

Read more  ➔
Pinwheelie spotlight: Arianna Gelwicks, Tech Recruiting

Pinwheelie spotlight: Arianna Gelwicks, Tech Recruiting

Read more  ➔
What is payroll data and how it benefits proptech companies

What is payroll data and how it benefits proptech companies

Read more  ➔
Earned wage access: What is it and why does it matter?

Earned wage access: What is it and why does it matter?

Read more  ➔
How fintech APIs are transforming financial services

How fintech APIs are transforming financial services

Read more  ➔
Webinar: Unleash growth with income and payroll APIs

Webinar: Unleash growth with income and payroll APIs

Read more  ➔
February product release: Updated Link UX and data quality

February product release: Updated Link UX and data quality

Read more  ➔
Why a direct deposit switching API is a must-have for banks and neobanks

Why a direct deposit switching API is a must-have for banks and neobanks

Read more  ➔
Tech spotlight: Floating footer with React functional components

Tech spotlight: Floating footer with React functional components

Read more  ➔
Pinwheelie spotlight: Hale Ahangi, People Operations Lead

Pinwheelie spotlight: Hale Ahangi, People Operations Lead

Read more  ➔
Shift from a vicious to virtuous cycle: The foundation for a fairer financial system

Shift from a vicious to virtuous cycle: The foundation for a fairer financial system

Read more  ➔
January product release: Recurring access to income & employment

January product release: Recurring access to income & employment

Read more  ➔
Pinwheel’s Series B and our path towards a fairer financial future

Pinwheel’s Series B and our path towards a fairer financial future

We're excited to share that we have raised a $50M Series B funding round led by GGV Capital with participation from many others.

Read more  ➔
Pinwheelie spotlight: Devin DeCaro-Brown, Product Manager

Pinwheelie spotlight: Devin DeCaro-Brown, Product Manager

Read more  ➔
Tech spotlight: How to implement async requests in your Python code

Tech spotlight: How to implement async requests in your Python code

Read more  ➔
2021 recap and product update: An amazing year for Pinwheel

2021 recap and product update: An amazing year for Pinwheel

Read more  ➔
Charles Tsang joins Pinwheel as Head of Marketing

Charles Tsang joins Pinwheel as Head of Marketing

Read more  ➔
Pinwheelie spotlight: Octavio Roscioli, Senior Software Engineer

Pinwheelie spotlight: Octavio Roscioli, Senior Software Engineer

Read more  ➔
November product release: Beta launch of income & employment monitoring

November product release: Beta launch of income & employment monitoring

Read more  ➔
How can payroll data help with one’s financial picture?

How can payroll data help with one’s financial picture?

Read more  ➔
Pinwheelie spotlight: Caroline Lo, Software Engineer

Pinwheelie spotlight: Caroline Lo, Software Engineer

Read more  ➔
2021 company onsite: Bringing Pinwheelies together

2021 company onsite: Bringing Pinwheelies together

Read more  ➔
October product release: Beta launch of direct deposit allocation monitoring

October product release: Beta launch of direct deposit allocation monitoring

Read more  ➔
Why payroll data access is inevitable on your product roadmap

Why payroll data access is inevitable on your product roadmap

Read more  ➔
Security spotlight: SOC 2 compliance

Security spotlight: SOC 2 compliance

Read more  ➔
Jeff Hudesman joins Pinwheel as Chief Information Security Officer

Jeff Hudesman joins Pinwheel as Chief Information Security Officer

Read more  ➔
Welcoming John Whitfield, VP of Engineering

Welcoming John Whitfield, VP of Engineering

Read more  ➔
Announcing Pinwheel’s FCRA Compliance

Announcing Pinwheel’s FCRA Compliance

Read more  ➔
Pinwheel's statement on Section 1033

Pinwheel's statement on Section 1033

Read more  ➔
Pinwheel raises $20M Series A

Pinwheel raises $20M Series A

Read more  ➔
If I were a fintech founder

If I were a fintech founder

Read more  ➔
Pinwheelie spotlight: Phil Jen, Director of Product

Pinwheelie spotlight: Phil Jen, Director of Product

Read more  ➔
Celebrating women's history month with Sasha Pilch

Celebrating women's history month with Sasha Pilch

Read more  ➔
Tech spotlight: How we re-launched our API docs

Tech spotlight: How we re-launched our API docs

Read more  ➔
Why I chose Pinwheel: Payroll APIs as the next frontier

Why I chose Pinwheel: Payroll APIs as the next frontier

Read more  ➔
Lunch and learn with Nik Milanović

Lunch and learn with Nik Milanović

Read more  ➔
Pinwheelie spotlight: David Daudelin, Senior Front End Engineer

Pinwheelie spotlight: David Daudelin, Senior Front End Engineer

Read more  ➔
The missing link

The missing link

Read more  ➔
Introducing Pinwheel, the API for payroll

Introducing Pinwheel, the API for payroll

Read more  ➔