Apple has taken a step into the world of mobile payments. With a new update, developers will be given the opportunity to build new apps that allow for payments in USDC. But this does come with some hurdles.

What exactly changed?

Apple decided to use the latest version of iOS, namely 18.1, opening up the NFC chip in the iPhone to third-party developers. NFC stands for Near Field Communication, and is the technology that enables contactless payments. This means that not only Apple’s Wallet and Apple Pay can use contactless payments, but also other applications.

USDC Payments on Your iPhone

This change opens the door to all sorts of new applications. One of them is paying with USDCcryptocurrency pegged to the US dollar. Jeremy Allaire, the boss of Circle (the company behind USDC), responded enthusiastically. He said iPhone users will soon be able to make USDC payments by tapping their phones on a payment terminal, just as they do now with Apple Pay.

How does it work in practice?

This is big news for crypto wallets. They can now also use NFC to make transactions. Imagine: You tap your iPhone on a payment terminal, which then sends a blockchain address and the amount to be paid. Your wallet app then asks for confirmation (e.g. via FaceID) and makes the payment on the blockchain.

This is big news for crypto wallets. They can now also use NFC to make transactions. Imagine: You tap your iPhone on a payment terminal, which then sends a blockchain address and the amount to be paid. Your wallet app then asks for confirmation (e.g. via FaceID) and makes the payment on the blockchain.

More than just USDC

Interestingly, this new feature does not only apply to USDC. Other stablecoins, such as EURC (the euro version of USDC), can also benefit from this. In addition, it opens up the possibility of using NFTs as tickets or other digital certificates.

Where is it available?

Apple roll up this function first in seven countries, including the United States, Canada and the United Kingdom. The Netherlands and other European countries are not yet on the list, but may follow later.

For wallet app developers, the key now is to use the latest Apple iOS SDK and prepare their apps for this ‘Tap to Pay’ feature with USDC. Payment terminal manufacturers will also need to update their equipment to process these NFC instructions.

In short, Apple’s decision could represent a major step forward in the everyday use of cryptocurrencies, making payments with digital assets as easy as using a contactless bank card.

Not just Apple

It’s not just Apple that’s moving in this direction. Popular crypto wallet MetaMask is partnering with Mastercard on a crypto debit card in the UK and EU. This shows that efforts are being made to integrate cryptocurrency into our everyday payment transactions.

Conclusion

While this new feature is not yet available in the Netherlands, it shows where the future of payments is headed. Time will tell how quickly this technology spreads and how it affects our daily lives.