Circle, the company responsible for the $USDC stablecoin, is preparing to introduce tap-and-go payments on iPhones following Apple’s decision to grant third-party developers access to its secure payment chips.
This move is expected to enable users to make direct payments with $USDC using the iPhone’s built-in Near Field Communication (NFC) and Secure Element (SE) technologies.
The development is part of Circle’s broader mission to enhance the adoption of digital currencies in everyday transactions.
Apple opens NFC and SE tech
Previously, iPhone users were limited to making contactless payments through Apple’s Wallet app and Apple Pay. This was because the company had restricted access to the NFC and Secure Element technologies.
This restriction hampered the ability of developers to innovate in the realm of contactless payments.
However, with Apple’s recent decision to open these key technologies to third-party developers, new opportunities have emerged.
This change allows blockchain-enabled wallets on iPhones to communicate directly with point-of-sale systems.
Users will soon be able to send $USDC directly to NFC-enabled devices, such as payment terminals or other iPhones, with just a single tap.
The traditional need for scanning QR codes or manually entering wallet addresses will be eliminated, streamlining the payment process.
Circle’s CEO, Jeremy Allaire, emphasised that this functionality won’t be limited to $USDC alone.
Other digital assets, including non-fungible tokens (NFTs) and stablecoins like $EURC, will also be supported by this new payment method.
New blockchain payment opportunities
Apple’s decision to open up its NFC and SE technologies sets the stage for blockchain-based payment systems to be more deeply integrated into the iPhone ecosystem.
This new capability will allow users to make direct payments at retail points of sale using iPhone-based wallet apps.
These apps will prompt users to confirm transactions through features like FaceID, with the payments seamlessly settled on the blockchain.
Allaire also pointed out the potential for this development to create a “powerful pathway” for direct-to-merchant payments using $USDC.
The combination of iPhone technology with high-performance, low-fee blockchain networks could enhance the user experience for both consumers and merchants.
Merchants could use point-of-sale systems to request specific blockchain addresses for $USDC payments, while the iPhone-based wallet app would guide the user through the transaction process.
Beyond $USDC, the open access to Apple’s NFC could also benefit other stablecoins, NFTs, and various types of digital certificates.
This expands the range of blockchain-based transactions that could be performed with a simple tap on an iPhone.
Limited rollout and industry impact
The rollout of this new feature will initially be limited to select countries, including Australia, Brazil, Canada, Japan, New Zealand, the United Kingdom, and the United States.
Notably, the European Union has not been mentioned as part of Apple’s initial rollout.
At the same time, other companies in the digital payments space are making their own advancements.
MetaMask has launched a self-custody debit card pilot in collaboration with Mastercard and Baanx, allowing users in the UK and EU to make purchases directly from their crypto wallets.
Additionally, Stripe has reintroduced cryptocurrency payments, starting with $USDC on the Solana, Ethereum, and Polygon blockchains.
Other payment companies, such as Triple-A, are also exploring stablecoin payments, with Triple-A set to support PayPal’s $PYUSD stablecoin by mid-2024.
Circle’s integration of Apple’s technology aligns with its overall strategy to promote the everyday use of digital currencies.
By leveraging the iPhone’s NFC and SE capabilities, Circle aims to create a seamless payment experience that could rival traditional methods.
