TLDR
- Apple is allowing third-party apps to use its NFC technology for transactions in iOS 18.1
- This change could enable USDC tap-to-pay functionality on iPhones
- Circle CEO Jeremy Allaire hinted at upcoming USDC tap-to-pay features
- The update follows regulatory pressure on Apple to open up its payment systems
- Developers can now use NFC contactless transactions independently of Apple Pay and Wallet
Apple has announced a significant update to its Near Field Communication (NFC) technology policy. Starting with iOS 18.1, the tech giant will allow third-party developers to use NFC for contactless transactions in their apps.
This change could pave the way for new payment options on iPhones, including the potential for tap-to-pay functionality using USD Coin (USDC), a popular stablecoin.
The update comes after Apple faced pressure from regulators, particularly in the European Union, to open up its payment systems.
With the new policy, developers can create apps that use NFC contactless transactions through the Secure Element (SE), independent of Apple Pay and Apple Wallet.
Jeremy Allaire, CEO of Circle, the company behind USDC, reacted to the news on social media. He wrote, “Tap to pay using USDC on iPhones incoming soon. Wallet devs, start your engines.” This statement suggests that Circle may be planning to implement USDC tap-to-pay features for iPhone users in the near future.
Tap to pay using USDC on iPhones incoming soon. Wallet devs, start your engines. https://t.co/D6lsj4saMS
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) August 14, 2024
However, Allaire clarified that Circle does not have a direct relationship or partnership with Apple or Apple Pay. The potential for USDC tap-to-pay on iPhones would come from third-party wallet developers using Apple’s newly accessible NFC technology.
The process for USDC tap-to-pay could work similarly to existing contactless payment systems. When a user taps their iPhone on a point-of-sale system, the devices would exchange transaction information.
The user would then confirm the payment using Face ID or another authentication method, and the app would process the transaction on the blockchain.
This development could make it easier for people to use cryptocurrencies like USDC for everyday purchases. It might also allow for transactions involving other digital assets, such as non-fungible tokens (NFTs) or other stablecoins.
The crypto community has generally responded positively to this news. Some see it as a step towards wider adoption of cryptocurrencies.
Idan Levin, a partner at venture capital firm Collider VC, commented that these small steps could accumulate into a moment where billions of people use public blockchains.
For developers interested in creating apps with these new capabilities, Apple has made the necessary software development kits (SDKs) available. Allaire encouraged wallet developers to start working with these tools to prepare for the launch of USDC tap-to-pay features.
It’s important to note that while this update opens up new possibilities, the actual implementation of USDC tap-to-pay on iPhones will depend on developers creating apps that use this functionality. As of now, no specific timeline has been announced for when such features might become available to users.
The iOS 18.1 update that includes these NFC changes has not yet been released. Apple typically releases major iOS updates in the fall, with point releases following in the subsequent months.
This development represents a significant shift in Apple’s approach to NFC technology and could potentially impact how people use cryptocurrencies in their daily lives. However, the full effects of this change remain to be seen as developers begin to explore the new possibilities offered by Apple’s updated NFC policy.
