Tap-to-Pay Crypto Transactions Coming Soon with USDC

Amid continuous efforts to integrate crypto with traditional technology, Jeremy Allaire, CEO of Circle, earlier today announced plans to introduce a "tap-and-go" payment system for USDC–Circle-issued stablecoin on iPhones.

This initiative follows Apple's recent decision to grant third-party developers access to its payment technology, which is expected to enhance the flexibility and utility of cryptocurrency transactions for iPhone users globally.

According to the latest reports, Circle, a prominent stablecoin firm, is poised to be among the first to capitalize on this technological advancement.

Allaire’s announcement on  Elon Musk’s social media platform X highlights the potential for a “seamless” integration of cryptocurrency payments into everyday transactions, providing a faster, user-friendly payment option for iPhone users.

Apple's decision to open up its NFC (Near Field Communication) chip and Secure Element (SE) to third-party developers marks a notable shift in how mobile payment applications can operate on its devices.

Previously restricted to Apple's Wallet app and Apple Pay feature, the NFC chip on iPhones will now support a broader range of applications, including blockchain-based payments, as explained by Allaire.

The Circle CEO noted: “This would allow a PoS 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.

“Combining this with high-performance and low-fee blockchain networks (most these days), this will open up a powerful pathway for direct to merchant USDC payments.”

Furthermore, the integration of USDC via Apple's NFC technology is expected to extend beyond simple transactions.

Allaire hinted at broader applications, including the use of non-fungible tokens (NFTs) for tickets and other certificates, potentially transforming how we think about and use digital assets in a mobile-first world.

He concluded: “FWIW, this applies to lots of things outside of USDC -- NFTs for tickets, other certificates, other stablecoins like EURC, etc. So, yes, Wallet developers should start using the latest Apple iOS SDKs that support this and ready their apps for USDC Tap to Pay.”

Meanwhile, according to Bloomberg, Apple's initiative to open up NFC capabilities will initially roll out to developers in several major markets, including Australia, Brazil, Canada, Japan, New Zealand, the United Kingdom, and the United States.

However, the absence of the European Union from this list raises questions about availability and regulatory acceptance in those countries.