Apple Unlocks NFC Payments for Third-Party Apps, Enabling USDC Tap to Pay on iPhones

As a seasoned analyst with over two decades of experience in the tech and finance industries, I find this recent development between Apple and Circle intriguing. The integration of USDC Tap to Pay on iPhone is a significant step forward in bridging the gap between digital currencies and traditional payment methods.


The announcement was made following a statement from Apple about the expansion of its NFC functionalities in iOS 18.1. Apple’s tech company has revealed plans to extend the use of NFC contactless transactions, allowing developers to incorporate this feature into apps on iPhones beyond just Apple Pay and Wallet. This means that iPhones can now be used for a wider range of transactions like in-store purchases, digital keys, IDs, and other similar functions.

In their announcement, Apple disclosed that these newly introduced APIs would become accessible in Australia, Brazil, Canada, Japan, New Zealand, the UK, and the US initially. They didn’t specify other European countries at this time, but they did mention that additional locations would be made available later on.

USDC Tap to Pay Enabled on iPhone through Circle Integration

In simpler terms, Jeremy clarified that integrating Circle on iPhone doesn’t involve Apple or Apple Pay, because his company doesn’t have any partnership with Apple.

Subsequently, he disclosed that the upcoming feature enables users to effortlessly complete transactions merely by tapping their smartphones, utilizing the USDC stablecoin. Earlier, only Apple’s proprietary Wallet app and Apple Pay were equipped with the iPhone’s Near Field Communication (NFC) technology for payment purposes.

Jeremy explained that the new feature lets cash registers talk to iPhones, sharing the essentials for a purchase (like the blockchain address and cost). The user can then confirm the transaction before initiating a quick USDC payment through the blockchain for the purchase.

As a long-time user of both cryptocurrencies and smartphones, I find the concept of a Point of Sale (PoS) system communicating with my iPhone wallet app incredibly intriguing. Imagine being able to effortlessly make transactions using my USDC digital currency, all while ensuring security through FaceID confirmation.

Allaire further noted that Apple’s decision to provide access to the iPhone’s NFC functionalities extends beyond just USDC. It opens up possibilities for various applications outside of stablecoins, such as utilizing Non-Fungible Tokens (NFTs) for tickets and other certificates, and also facilitating the use of alternative stablecoins like EURC.

Later, he motivated the wallet creators to initiate utilizing Apple’s recent functionalities for the purpose of integrating them and preparing their applications for USDC Tap to Pay. He pointed out:

For your convenience, I’d like to clarify that the concepts discussed here are not limited to USDC. This extends to various areas such as NFT tickets, certificates, other stablecoins like EURC, among others. Therefore, I recommend that wallet developers consider adopting the most recent Apple iOS SDKs, which support this functionality, and prepare their applications for USDC Tap to Pay.

As Circle develops its Tap to Pay feature on iPhone for cryptocurrency transactions, MetaMask – another crypto payments company – is partnering with Mastercard and Baanx to launch a trial of self-custody debit cards in the UK and EU. The goal of this pilot project is to enable some users to make everyday purchases using their digital wallets, thereby integrating cryptocurrencies with conventional payment systems more closely.

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2024-08-15 12:52