Key Takeaways
- Apple’s NFC Update: Apple’s recent update allows third-party applications to use NFC technology, enabling new payment systems to operate alongside Apple Pay. This change is set to be available with iOS 18.1.
- USDC Tap-to-Pay: Circle plans to utilize this NFC technology for a USDC Tap-to-Pay feature on iPhones, allowing users to make direct payments with USDC by simply tapping their devices.
- Enhanced Crypto Integration: The new NFC capability could accelerate cryptocurrency adoption by making transactions more seamless and user-friendly, potentially integrating digital assets more deeply into everyday financial activities.
On August 14, 2024, Circle CEO Jeremy Allaire announced a significant development in cryptocurrency payments. According to Allaire, Apple’s recent update to its Near Field Communication (NFC) technology could soon enable USDC Tap-to-Pay on iPhones. This feature will leverage Apple’s NFC capabilities to facilitate direct payments using USDC, a stablecoin issued by Circle.
The update follows Apple’s decision to allow third-party applications to use its NFC technology for transactions, a move that opens the door for alternative payment systems to compete with Apple Pay. This change, which will be available with the upcoming iOS 18.1 update, allows developers to integrate NFC contactless transactions through the Secure Element (SE) in their apps, independent of Apple Pay and Apple Wallet.
The USDC Tap-to-Pay system will allow iPhones to communicate with point-of-sale systems using NFC technology. This will enable users to make payments by simply tapping their devices. According to Allaire, this new feature could streamline transactions by allowing point-of-sale systems to communicate payment details directly to the iPhone, which would then confirm the transaction through biometric verification such as FaceID.
The announcement has been well-received within the crypto community. Industry experts believe this development will accelerate the adoption of cryptocurrencies by making payments more accessible and user-friendly. Idan Levin of Collider VC noted that simplifying transactions with fewer steps could lead to broader adoption of public blockchains.
Apple’s new NFC functionality is set to debut in several countries, including the United States, United Kingdom, Canada, Japan, New Zealand, Australia, and Brazil. While Apple has traditionally maintained a cautious stance towards cryptocurrency, this move indicates a shift that could integrate digital assets more deeply into mainstream financial systems.
