Circle CEO teases upcoming Apple tap-to-pay support for USDC

Circle, the stablecoin issuer behind USDC, is looking to introduce tap-to-pay for the token. The feature would be directed towards Apple’s iPhones, which recently got an update for developers.

According to Circle CEO Jeremy Allaire, iPhone users would soon be able to make payments with the popular stablecoin with a tap. However, the new feature won’t have anything to do with Apple’s native applications, such as Apple Pay.

On-the-go USDC payments

The California-based tech giant recently unveiled plans to allow third-party app developers to access its NFC chip and Secure Element (SE) in iPhones. Until this announcement, only Apple’s Wallet app and Apple Pay could use the NFC chip for payments, Allaire said in a subsequent post.

This development paves the way for apps like Metamask to facilitate NFC transactions using stablecoins or other cryptocurrencies on Apple devices. Further, the use of Apple’s Secure Element would enhance the security of this payment mode.

Apple’s Secure Element (SE) is a dedicated hardware component embedded in Apple devices such as iPhones and Apple Watches. It is designed to securely store and manage sensitive information like payment credentials, encryption keys, and biometric data.

Allaire explained that a wallet supporting USDC could use the iPhone’s NFC chip to send transaction data to receiving devices, such as Point-of-Sale hardware, via a tap. 

In the case of cryptocurrencies, it could be a wallet address or the amount that needs to be paid. Once this data is received, a third-party app on the iPhone could prompt users to confirm the payment via Apple’s biometric systems and initiate a transaction over the blockchain.

If this feature is used over a “high-performance and low-fee” blockchain network, the Circle CEO believes it could “open up a powerful pathway for direct to merchant USDC payments.”

Opening up new doors

Allaire added that the NFC access extends beyond just USDC and can be leveraged for other use cases such as “NFTs for tickets, other certificates, other stablecoins like EURC, etc.” As such, he urged developers to switch to the latest Apple iOS Software Development Kits (SDKs).

He concluded:

PoS hardware/software companies should ready firmware updates so that they can send/receive these NFC instructions, and work with their Payment Processors to ensure that those firms upgrade to support native USDC settlement (many PSPs and Processors are already doing this).

At the time of publication, Apple’s new SDK has been confirmed in Brazil, Canada, Japan, Australia, New Zealand, the United Kingdom, and the United States. There has been no confirmation for nations in the European Union where the tech giant has faced scrutiny over restricting users from making external purchases through its App Store.

To date, cryptocurrency wallets available on Apple have had to rely on indirect methods and third-party integrations to facilitate transactions and payments. These wallets have typically integrated with Apple Pay, which handles the fiat conversion before completing the transaction.

Earlier in August, cryptocurrency exchange BingX integrated Apple Pay to allow users to purchase cryptocurrencies using 30 different fiat currencies. Prior to that, Bybit integrated the payment method with its Bybit Card. The offering enabled Bybit’s users to access over 20 fiat currencies to purchase digital assets with Apple Pay.

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