- Circle to embrace tap-to-pay on iPhones
- According to Jeremy Allaire, USDC will leverage Apple’s NFC chip to third party
Tap-to-pay using iPhones
Stablecoins have become mainstream as they continue to defy market trends. Amidst the stablecoin growth in supply and market cap, USDC has become the favorite among regulated stablecoins. Therefore, to keep up with market demands and new opportunities, Circle will integrate tap-to-pay using USDC. Circle’s CEO Jeremy Allaire announced the company’s recent venture stating that,
“Tap to pay using USDC on iPhones incoming soon. Wallet devs, start your engines.”
The CEO explained that if an iOS wallet that supports USDC enables this, they could enable a UX where a receiving device (like a Point-of-Sale, or another iOS device) could receive the transaction info via a tap.
He added,
“This would allow a PoS to tell an iPhone what blockchain address it will accept USDC on, or the amount to pay, and then the iPhone-based wallet app could prompt the user to confirm a payment (like with FaceID) and initiate a transaction over the blockchain to settle the USDC.”
According to Circle, if the technology is combined with high-performances, the low-fee blockchain will facilitate a powerful pathway for direct-to-merchant USDC payments.
USDC’s greater demand as a regulated stablecoin
Circle’s move to allow this feature using USDC on iPhone arises amidst increased demand for regulated stablecoins.
In June, Circle became the first company to comply with MiCA’s regulations, thus facilitating its operations within the European Union. Soon after, USDC’s market cap share increased from $32 billion to $34 million.
Source: IntoTheBlock
The surge in market share arises from its decline to $23 billion in 2023 post SVB’s collapse.
Equally, trading volume has risen significantly on a yearly basis too. This hike is a sign of the rising demand for regulated stablecoins, with investors preferring safe and secure crypto assets.
Source: Defillama
Apple NFC chip to 3rd party
Notably, Circle’s move to integrate tap-to-pay using USDC on iPhone arose after Apple started to allow developers to offer in-app NFC transactions using the secure element starting with iOS 18.1. This allows developers to set a default contactless payment app that’s accessible after clicking the iPhone’s side button. Circle’s CEO explained only Apple Pay and wallets have been allowed so far. He said,
“Until Apple did this, the only payment app or wallet that could use NFC on iPhones was Apple’s Wallet and Apple Pay.”
This applies not only to one stablecoin but across various other web3 platforms and projects too. Such projects include NFTs, certificates, and stablecoins such as EURC.
What it means for Circle’s USDC
Over the past month, USDC’s market share has seen sustained growth.
Equally, the stablecoin’s exchange reserves have risen exponentially too. In fact, according to data from Cryptoquant, the exchange reserves rose from $2.9 billion to $3.08 billion over the past week alone.
Source: Cryptoquant
This shows an increase in demand for USDC to purchase other cryptocurrencies. Simply put, it indicates the greater use of USDC by crypto investors.
Therefore, the integration of USDC into the iPhone though tap-to-pay will open access to many users. A bigger user base will further drive the market share, while also increasing revenue and profitability.
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