Apple’s NFC Upgrade Paves Way for USDC Tap-to-Pay on iPhones, Circle CEO Says

On Aug. 14, Apple revealed that it will now permit third-party applications to use its NFC (Near Field Communication) technology for transactions. This update will allow alternative payment systems to compete with Apple Pay—the iPhone’s dominant payment option.

The announcement follows extensive regulatory pressure from entities such as the European Union. Apple confirmed the new feature will be available with the upcoming iOS 18.1 update. With this version, developers can use NFC contactless transactions through the Secure Element (SE) in their apps, independent of Apple Pay and Apple Wallet.

How USDC tap-to-pay will work

The USDC Tap-to-Pay application will utilize Apple’s newly available NFC technology for third-party developers. This change will enable various wallet apps, including those for Web3 or crypto, to use NFC for transactions.

According to Allaire, iOS wallets supporting USDC could streamline payments by allowing devices to exchange transaction information through a simple tap. For instance, a point-of-sale (PoS) system could communicate the iPhone’s blockchain address or payment amount, prompting the user to confirm the transaction using FaceID or another authentication method. The app would then process the payment via blockchain.

Allaire suggested that this development could facilitate direct USDC payments to merchants and enable transactions for other digital assets, such as NFTs or stablecoins like EURC. Hence, he encouraged wallet developers to integrate the latest Apple iOS SDKs in preparation for the USDC Tap-to-Pay launch.