Circle is eyeing NFC payments for USDC on iPhones

Stablecoin issuer Circle plans to enable tap-to-pay feature using USDC on Apple iPhones

In a post on the X site on August 14, the company’s CEO Jeremy Allaire drew attention to the California-based tech giant’s recent announcement that it would allow third-party developers to integrate the iPhone’s Near Field Communication chip into their own applications.

The NFC chip enables short-range wireless communication when devices are close together, typically within a few centimeters. This creates a secure connection between NFC-enabled devices, enabling contactless data exchanges such as making payments or sharing files.

Allarie’s Circle plans to use this feature, which was previously limited only to Apple’s native platforms like Apple Wallet and Apple Pay.

Cryptocurrency wallets on iPhones that use this feature will be able to receive information from the point-of-sale device, such as “which blockchain address to accept USDC or the amount to be paid,” Allaire explained in a subsequent post.

The transaction will be secured using Apple’s biometric authentication process, such as FaceID, and Apple’s special hardware called the Secure Element. The Secure Element is a special hardware used in Apple devices that stores sensitive information in isolation from the device’s other hardware and operating system.

“Wallet developers should start using the latest Apple iOS SDKs that support it and prepare their apps for USDC Tap to Pay. […] PoS hardware/software companies should prepare firmware updates to be able to send and receive these NFC instructions and work with Payment Processors to ensure they upgrade to support native USDC settlement.”

Jeremy Allaire, CEO of Circle

Allaire explained that the feature could be used in conjunction with a “high-performance and low-fee” blockchain network to enable “direct-to-merchant USDC payments.” He added that the feature’s usability extends beyond USDC and could be implemented for other NFT and stablecoin-based applications as well.

Apple’s latest SDK update is scheduled to be released in the US, UK, Canada, Japan, New Zealand, Australia, and Brazil.

The tech giant has generally stayed away from the cryptocurrency space and has even imposed restrictions on apps connected to the industry. Last year, the company came under fire for its policy of taking a 30% commission on in-app sales of NFTs made through the App Store.

Apple previously blocked social media platform Damus, which boasted about its Bitcoin tipping feature, which the company said violated Apple’s app store policies that require users to use in-app payments.