Apple's NFC Upgrade Enables USDC Tap-to-Pay on iPhones

By: Eva Baxter

Jeremy Allaire, the CEO of Circle, has announced that USDC Tap-to-Pay could soon become a reality on iPhones following Apple's new upgrade. This statement was made on August 14, confirming that developers of wallet apps should begin preparations.

Allaire clarified that Circle has no direct relationship or partnership with Apple or Apple Pay. On the same day, Apple disclosed that it would allow third-party applications to use its NFC (Near Field Communication) technology for transactions. This modification will allow alternative payment systems to compete with Apple Pay, the iPhone's leading payment option.

Apple's decision came after extensive regulatory pressure, particularly from entities such as the European Union. The tech giant confirmed that this feature would be available with the upcoming iOS 18.1 update. Developers can then use NFC contactless transactions through the Secure Element (SE) in their apps, independently of Apple Pay and Apple Wallet.

How USDC Tap-to-Pay Will Work

The USDC Tap-to-Pay feature will leverage Apple's newly available NFC technology for third-party developers. This initiative will permit various wallet applications, including those related to Web3 or crypto, to use NFC for transactions.

According to Allaire, iOS wallets supporting USDC could simplify payments by allowing devices to exchange transaction information with just a tap. For example, a point-of-sale (PoS) system could communicate the iPhone's blockchain address or payment amount, prompting the user to confirm the transaction using FaceID or another authentication method. Subsequently, the app would process the payment via blockchain.

Allaire further suggested that this upgrade could enable direct USDC payments to merchants and transactions for other digital assets, such as NFTs or stablecoins like EURC. He encouraged wallet developers to integrate Apple's latest iOS SDKs in preparation for the USDC Tap-to-Pay launch.

Crypto Community Welcomes Initiative

Members of the crypto community have warmly received this initiative, seeing it as a catalyst for the next phase of crypto adoption. Idan Levin, a partner at venture capital firm Collider VC, expressed his excitement:

"Less clicks, tapping, meeting users where they are—each one of those will be another small step that will accumulate into a singular moment—billions of people using public blockchains."