Key Points
- Apple will allow third-party developers to use its NFC technology for contactless transactions, potentially enabling USDC and other cryptocurrency payments on iPhones.
- The new feature, coming with iOS 18.1, will allow developers to offer in-app NFC transactions using the Secure Element, independent of Apple Pay and Apple Wallet.
Apple Expands NFC Accessibility for Developers
In a significant move, Apple has announced that it will open up access to its Near Field Communication (NFC) chip technology to third-party developers. This update, set to arrive with iOS 18.1, will enable developers to offer in-app NFC contactless transactions using the Secure Element, separate from Apple Pay and Apple Wallet.
The new functionality will support a wide range of applications, including in-store payments, car keys, transit passes, corporate badges, student IDs, home and hotel keys, loyalty cards, and event tickets. Future support for government IDs is also planned.
Security and Privacy Measures
Apple emphasizes that user security and privacy remain paramount. The new solution leverages the Secure Element, an industry-standard certified chip designed to securely store sensitive information on the device. The system also utilizes Apple’s proprietary hardware and software technologies, including the Secure Enclave, biometric authentication, and Apple servers.
To access these new capabilities, developers will need to enter into a commercial agreement with Apple, request the NFC and SE entitlement, and pay associated fees. This process ensures that only authorized developers meeting specific industry and regulatory requirements can access the relevant APIs.
USDC Tap-to-Pay on the Horizon
Jeremy Allaire, CEO of Circle, the company behind the USDC stablecoin, quickly responded to Apple’s announcement. In an X post, Allaire stated, “Tap to pay using USDC on iPhones incoming soon. Wallet devs, start your engines.”
While Allaire clarified that Circle has no direct relationship or partnership with Apple or Apple Pay, he outlined how USDC tap-to-pay could work using the newly available NFC technology. iOS wallets supporting USDC could enable devices to exchange transaction information through a simple tap. For example, a point-of-sale system could communicate the iPhone’s blockchain address or payment amount, prompting the user to confirm the transaction using FaceID or another authentication method.
Implications for the Crypto Industry
This development could have far-reaching implications for the cryptocurrency industry. It potentially opens the door for direct USDC payments to merchants and facilitates transactions for other digital assets, including NFTs and stablecoins like EURC.
Allaire encouraged wallet developers to integrate the latest Apple iOS SDKs in preparation for the USDC Tap-to-Pay launch, signaling a new era of cryptocurrency integration with mainstream payment systems.
As the feature rolls out, it will be available to developers in Australia, Brazil, Canada, Japan, New Zealand, the UK, and the US, with additional locations to follow. This move by Apple represents a significant step towards broader adoption and integration of cryptocurrency payments in everyday transactions.
