Bitwage which is a start-up that helps firms pay their employees in the crypto asset has added ether as a payroll option. It has been announced on the 10th of June ’19 that firms that want to offer tax and HR-compliant ether benefits can sign up to offer it as a benefit to employees.
The firm has been giving direct deposits of bitcoin since the year, 2014, and serves nearly 30,000 workers. Freelancers, employees and independent contractors can receive from their employers any percentage of their fiat obligations due to them in crypto assets. The firm has experimented with the Ethereum ecosystem since the year, 2017 which includes launching the consulting services firm Inwage, that built several projects on the blockchain network. This includes the Moria initial coin offering, that raised $50 million USD and a pilot project for a big insurance firm which leverages Ethereum for audit trail capabilities.
But adding ether to the main offering of Bitwage “took a lot of behind the scenes work… because the whole system was optimized for BTC,” a company representative said. “It’s just a matter of now having gotten the infrastructure to add it.” Bitwage was founded five years before, CEO Johnathan Chester realized that traders were accepting bitcoin, but there was no way for employees to get paid in bitcoin.“Our goal was to close the financial loop,” Chester said in a statement. The company currently processes $2.5 million in monthly volume for contractors and full-time employees.
Bitwage offers two payment services, direct deposit, in which employees have part of their salaries sent to the firm to be exchanged for crypto automatically through dollar cost averaging as well as team wages, where Bitwage gives firmwide payroll services. Team wage contracts are primarily provided for companies that may want to pay hundreds of contract employees spread across the globe with just one payment, the representative said.
Square offers a similar service where an employee’s direct deposit goes to the payments platform, but the employee has to manually swap it for bitcoin. Coinbase allows automatic monthly purchases of crypto out of a customer’s bank account. Several blue-chip firms have employees which use Bitwage to automatically convert their cash salaries into crypto which include Apple, Amazon and Google. Additionally, many gig workers for Uber, Caviar, and Doordash utilize the services, according to the representative.