Tap to pay with Crypto? Apple’s reveals changes in payment tech

Apple will open up its iPhone payment chip to third-party developers, which could lead to wider use of crypto in Apple’s contactless payment functions.

Following regulatory pressure, particularly from the European Union, Apple has announced that it will allow developers to access its payment technology. This move, expected with the iOS 18.1 update, could have significant implications for the crypto industry.

Powered by Near Field Communication (NFC) technology, the iPhone’s payment chip has been exclusive to Apple Pay, limiting competition in the mobile payment space. With the new policy, developers, including those in the crypto space, will now be able to access the NFC chip for in-store payments, public transport fares, and other crypto uses.

This change could allow crypto wallets to integrate more seamlessly with iPhones, allowing users to transact cryptocurrencies as easily as fiat currency.

Apple’s privilege

The decision comes after the European Commission’s antitrust investigation into Apple’s alleged clampdown on rival mobile wallet developers. The company avoided hefty fines by agreeing to open up NFC technology with binding commitments for the next decade.

For the crypto community, this development could lead to wider acceptance by making digital currencies more accessible and user-friendly on a widely used platform like the iPhone.

But Apple will still charge “associated fees” and require commercial agreements, meaning only developers who meet strict security and regulatory standards will gain access.

Speculative implications for crypto

This move could impact platforms like Solana (SOL) and Ethereum’s (ETH) Layer 2 solutions that offer low-cost, high-speed transactions. Solana stands out for its fast finality and minimal fees, making it a strong contender for more widespread mobile payments adoption.

Meanwhile, Ethereum’s L2 solutions, despite experiencing fluctuating fees, continue to offer a more scalable and cost-effective alternative to traditional payment systems. This shift could accelerate competition among blockchains to seamlessly integrate with mainstream technologies, improving the usability and adoption of crypto payments in transactions.

Cryptocurrency holders may prefer platforms like Solana and Ethereum’s L2 solutions due to the near-instant completion of transactions and minimal fees, especially in the mobile ecosystem where efficiency and speed are paramount.

The move has the potential to encourage wider adoption of cryptocurrencies in everyday payments, but there is still a lot of uncertainty about Apple’s fees for transaction costs.