How Apple’s Decision to Open iOS NFC Access Could Benefit the Crypto Sector
Apple recently announced that it will soon allow third-party developers from countries in the European Union (EU) and certain other regions to use its NFC technology on iPhone, in an upcoming iOS 18.1 beta. The technology, which supports contactless payments, is currently limited to Apple Pay and Apple Wallet. The decision could come as a boost to crypto companies and could pave the way for Web3 wallet services to offer tap-to-pay functionality.
Circle co-founder and CEO Jeremy Allaire urged wallet developers to work on supporting Apple’s NFC payment technology, following the iPhone maker’s announcement earlier this week. Circle is the company that issues the USDC stablecoin, which is pegged to the US dollar. At the time of publishing, the market cap of USDC was $34.6 billion (approximately Rs. 2,90,934 crore), and there are currently over 34 million tokens in circulation.
“Tap to pay with USDC on iPhones is coming,” Allaire said on X. Crypto enthusiasts too responded to the Circle CEO’s post, with some predicting the service could boost crypto-based payments on the iPhone.
In another post on X, Allaire said that now that third-party developers have access to the NFC feature, Apple is allowing them to support tap-to-pay transactions on Web3 wallet and crypto wallet apps.
“If an iOS wallet that supports USDC makes this possible, they could enable a UX (interface) where a receiving device could receive the transaction information via a tap. This would allow the point-of-sale to tell an iPhone which blockchain address it accepts USDC on, or the amount to be paid, and then the iPhone-based wallet app could prompt the user to confirm a payment (like with FaceID) and initiate a transaction via the blockchain to settle the USDC,” Allaire said, adding that combining NFC with low-fee blockchains could elevate direct payments to merchants via crypto assets like USDC.
Ali Jamal, CEO of Cryptos Consultancy, called Apple’s decision to provide access to the iPhone’s NFC functionality a revolutionary move in a post on LinkedIn.
“Apple just opened up its NFC chip to third-party apps with the release of iOS 18.1, setting the stage for a new era in crypto payments. It’s a watershed moment for the industry. This move extends beyond USDC to facilitate payments with other stablecoins, NFTs, and more, leveraging high-performance blockchains like Solana and Avalanche for seamless, low-fee transactions,” she said.
Jamal further noted that this development could make crypto payments as accessible and accepted as traditional payments.
Crypto payments on Apple’s platform
The iPhone maker has repeatedly faced criticism for its App Store policies, which have been deemed “unfair” by makers of crypto-related apps. In November 2023, Apple customers submitted a class-action lawsuit over the company’s restrictions on crypto payments and failure to expand its peer-to-peer payment services beyond the Apple Pay ecosystem.
Earlier that year, two Bitcoin wallet providers, Zeus and Damus, also criticized the iPhone maker for imposing restrictions on their apps in Apple’s App Store. A California appellate court had previously told Apple that Apple’s policy of not allowing app developers to integrate third-party payment methods with their services was “unlawful.”
Apple has yet to clarify whether crypto-related apps will get access to NFC functionality on the iPhone with its upcoming iOS 18.1 beta. That will give developers in Australia, Brazil, Canada, Japan, New Zealand, the UK, and the US access to the NFC and SE APIs. The company will add other regions soon.