Apple's move towards crypto payments with USDC integration

After 10 years of exclusivity, Apple has opened its NFC chip to third-party wallet developers. This means that users can now get access to their crypto wallet with just a tap on their iPhone. This new feature, which will be released on the upcoming iOS 18 update, will be a game changer for crypto platforms like Solana and Ethereum, who could be the pioneers to be adopted on the new iPhone payment system.

New wallet update that could trade crypto?

The iPhone payment chip, powered by Near-Field Communication (NFC) technology, has opened up its services to third party companies, including those in the crypto industry, can now access the NFC chip for in-store payments, transit fares, and other crypto uses. This could be a monumental change for iPhone users, as they could see how they could connect their crypto wallets into their iPhones in the very near future, allowing them to make crypto payments as easy as fiat ones.

Apple's conceded defeat

After a four-year battle with the EU, Apple has finally conceded to the conditions of the EU. After the tech company was investigated for anti trust violations, the company agreed to open up its NFC technology in exchange for avoiding heft fines by the regulators.

This concession could lead to a broader adoption of the digital currencies by making them more accessible and user-friendly on a widely-used platform like the iPhone. But Apple said that they will still be charging associated fees for every transaction and party that would like to use their NFC technology will be required to abide by commercial agreements, meaning that only developers who meet the stringent security and regulatory standards will gain access to their technology. Apple confirmed the new feature will be available with the upcoming iOS 18 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 Walle

How would the USDC tap-to-pay

The USDC Tap-to-pay application will utilize Apple's newly available NFC technology for third Party developers. 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 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.

What are the community's reactions to this reveal?

Cryptocommunity members have welcomed the initiative, stating that this could drive the next phase of crypto adoption. Some say that this could be a game-changer for crypto adoption, and that this could be a step into the future.

Many others have also praised the Tap-tp-Pay system that would be coming to the iPhone, expressing their anticipation for the feature.

Speculative implications for crypto

This news could be great news for crypto platforms like Solana and Ethereum's Layer 2 solutions, which both offer low-cost, high-speed transactions. Solana stands out with its rapid finality and minimal fees, making it a strong contender for more widespread mobile payment adoption. On the other hand, Ehereums's Layer 2 solutions presents a more scalable and cost-effective alternative to the traditional payment system. Users with crypto assets would thus most likely prefer these two platforms due to its near-instant transaction and minimal fees, particularly in a mobile ecosystem where efficiency and speed are paramount.