Tech

Circle CEO Announces USDC Tap-to-Pay Coming to iPhones

3 months ago
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TLDR

  • Apple is opening up its NFC chip to third-party developers, allowing for non-Apple Pay contactless payments on iPhones
  • Circle CEO Jeremy Allaire announced that tap-to-pay functionality for USDC on iPhones is “incoming soon”
  • This change could enable direct merchant payments using USDC and other digital assets
  • The update will be available in iOS 18.1, expected this fall
  • Third-party developers must meet certain requirements and enter into agreements with Apple to use the NFC functionality

Apple’s recent decision to open its Near Field Communication (NFC) chip to third-party developers has sparked excitement in the cryptocurrency world. This move, announced on August 14, 2024, will allow non-Apple Pay contactless payments on iPhones, potentially paving the way for cryptocurrency payments in everyday transactions.

Jeremy Allaire, CEO of Circle, the company behind the USDC stablecoin, was quick to respond to this news. In a post on social media platform X, Allaire stated, “Tap to pay using USDC on iPhones incoming soon. Wallet devs, start your engines.”

This announcement suggests that Circle is already working on integrating USDC payments into the newly available NFC functionality.

The change comes after years of pressure from regulators, including the European Union, calling for increased competition in the mobile payments space. Until now, Apple had restricted NFC access on iPhones to its own Apple Wallet and Apple Pay services, citing privacy concerns.

Allaire explained how the new functionality could work:

“This would allow a point of sale to tell an iPhone what blockchain address it will accept USDC on, or the amount to pay, and then the iPhone-based wallet app could prompt the user to confirm a payment (like with FaceID) and initiate a transaction over the blockchain to settle the USDC.”

This development could significantly impact how people use cryptocurrencies in everyday life. By enabling tap-to-pay functionality for stablecoins like USDC, it becomes easier for consumers to use digital assets for regular purchases. Allaire suggested that this could open up “a powerful pathway for direct to merchant USDC payments.”

The potential applications extend beyond just USDC. Allaire mentioned that the technology could also be used for “NFTs for tickets, other certificates, other stablecoins like EURC, etc.” This suggests a broader integration of blockchain-based assets into everyday transactions.

Apple’s new policy will take effect with the iOS 18.1 update, expected to be released in the fall of 2024. However, there are some limitations to this openness. The NFC functionality will initially only be available in seven countries: Australia, Brazil, Canada, Japan, New Zealand, the United Kingdom, and the United States. Notably absent from this list are the European Union countries.

Ddevelopers looking to use the NFC chip will need to meet certain requirements. Apple stated that it will only work with authorized developers who “meet certain industry and regulatory requirements” and commit to its security and privacy standards.

Developers will also need to enter into a commercial agreement with Apple and pay associated fees, though these have not been publicly disclosed.

Circle’s USDC, currently the second-largest stablecoin with a market cap of almost $35 billion, stands to benefit significantly from this development. The company recently won approval to issue its stablecoins in Europe, meeting the requirements of the European Union’s Markets in Crypto-Assets (MiCA) legislation.

As the cryptocurrency industry prepares for this new opportunity, wallet developers are being encouraged to start using the latest Apple iOS SDKs that support this functionality. At the same time, point-of-sale hardware firms and payment processors are being advised to upgrade their systems to support native USDC settlement.

Source: https://blockonomi.com/circle-ceo-announces-usdc-tap-to-pay-coming-to-iphones/