Coinbase partners with TrueLayer to launch Easy Bank Transfers

Users can now link their bank account directly to Coinbase and begin making near instant deposits, securely, and without the need to manually enter their bank account details. The move is expected to reduce the risk of errors and failed payments that arise from manual data entry, save time, and provide Coinbase customers with an overall more convenient way to move their funds.

Now, by selecting the Easy Bank Transfer option when adding funds to their account, users can authenticate their payment directly from their mobile banking app, confirm their payment, and then be redirected back to Coinbase for an improved user experience. Funds arrive in their account within minutes, enabling them to put their money to work right away.

Coinbase has used the payments infrastructure offered by TrueLayer, an Open Banking provider, to make its Easy Bank Transfers available in the UK, where over six million people regularly rely on the technology to manage their finances.

Crypto and Open Banking

Blockchain technology and Open Banking share the same ideology: easiest access to data and informational transparency. Open Banking powers this idea through APIs, whereas blockchain does it through Distributed Ledger Technology (DLT) – a protocol that eliminates the need for a central authority to keep a check against manipulation.

So, when blockchain users want to sign up and use a decentralised exchange (DEX) to execute direct peer-to-peer cryptocurrency transactions, these matching ideologies come into play. There is no need for KYC confirmation by a bank or a third party. The user uploads their information on the blockchain and is visible to everyone. The individual participants (banks, government agencies, companies) are then responsible for collecting the personal data stored on the decentralised network.

Once a crypto exchange connects its Open Banking APIs, it will be able to automatically detect where the money comes from, when it arrives in the bank account, and when it needs to send the money back to the customers. By unlocking this part of the process, crypto exchanges and startups will elevate the overall consumer experience as a whole.

TrueLayer’s partnerships

TrueLayer provides tools to enable companies to take advantage of the UK’s Open Banking regulatory framework. The regulation enables authorised third parties to access data held by banks at the request of the customers who own that data. Many fintech firms leverage this framework to power their services.

In September 2022, TrueLayer has announces its collaboration with cryptocurrency exchange Bybit to deliver rapid fiat deposits across Europe. The company wants to be a one-stop shop for all things crypto with 100+ spot trading pairs, derivatives, and passive income products. By implementing TrueLayer Payments, Bybit customers across Europe have gained a different digitally native method to fund their accounts. Payee details are pre-populated by TrueLayer, eliminating errors or the possibility that funds could be sent to the wrong business. Customers are then redirected to their banking app to authenticate their identity, usually with biometrics such as fingerprint recognition or Face ID before the payment is authorised.

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