Circle CEO Jeremy Allaire announced the integration of contactless payment functionality Tap to Pay using USDC on iPhone.
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
“[…] Wallet developers, start your engines,” he added.
In iOS 18.1, Apple opened the opportunity for developers to offer contactless transactions from their own apps using the NFC chip and a special hardware module called Secure Element (SE). Previously, this was only possible within Apple Pay and Apple Wallet services.
This move followed pressure from regulators, including in the EU. Now banks and other services can compete with the Apple Pay platform. Users will have the option to set a third-party app as the default payment system, replacing Apple’s solution.
The Cupertino company will require developers to pay fees and enter into a commercial agreement to use the NFC chip. Initially, the functionality is planned to launch in Australia, Brazil, Canada, Japan, New Zealand, the United States, and the United Kingdom. The European Union is not mentioned.
In a subsequent post, Allaire clarified the upcoming functionality. According to him, Circle has no agreements with Apple; the company will utilize the now publicly available NFC. This will allow cryptocurrency wallets to use the chip for transactions.
Lots of chatter and questions about my tweet. A bit more clarity so that people don’t make this into something it is not.
Why is tap to pay using USDC on iPhones incoming soon, and what does it mean for Wallet devs to get going?
— Circle has no relationship with Apple and this… https://t.co/IZfLbIsWGp
— Jeremy Allaire — jda.eth / jdallaire.sol (@jerallaire) August 14, 2024
The Circle CEO noted that iOS wallet developers supporting USDC will be able to create a user interface where a receiving device, such as a point of sale or another iPhone, will receive transaction information via touch.
“This will allow the PoS to inform the iPhone of the blockchain address to receive USDC or the amount to be paid. Then, the wallet app on the iPhone can request user confirmation of the payment (e.g., using Face ID) and initiate a blockchain transaction to complete the payment in USDC,” Allaire noted.
Thanks to high-performance and low-cost blockchain networks, this will open a powerful avenue for direct payments to merchants, added the Circle CEO. The described functionality is also applicable to many other things, such as NFT tickets, other stablecoins, and so on.
Allaire urged wallet developers to prepare applications for using USDC with Tap to Pay, and hardware and software manufacturers for PoS to be ready for firmware updates.
iOS 18.1 is currently in beta testing. The public release of the software is expected closer to October.
Back in January, Circle filed for an IPO in the United States.