Circle, the global financial technology firm, is preparing to introduce NFC (Near Field Communication) contactless payment capabilities for USDC transactions on iPhones, according to CEO Jeremy Allaire. This new feature will take advantage of Apple’s recent policy change, which now allows third-party developers to access the iPhone’s NFC chip and Secure Element (SE) technology, albeit with associated fees.
Previously, NFC capabilities on iPhones were restricted to Apple’s Wallet app and Apple Pay. However, with this policy shift, point-of-sale systems will soon be able to interact directly with blockchain-enabled iPhone wallets, streamlining USDC transactions. Users with an iOS wallet that supports USDC will be able to send funds to NFC-enabled devices, such as payment terminals or other iPhones, with just a touch.
This new functionality won’t be limited to USDC alone; it will extend to other digital assets, including non-fungible tokens (NFTs) and various stablecoins like EURC, Allaire noted.
The development follows Circle’s recent milestone as the first global stablecoin issuer to receive a license under Europe’s Markets in Crypto-Assets (MiCA) regulation, enabling the issuance of USDC and EURC. However, it’s important to note that Apple’s new NFC and SE APIs will initially roll out in select regions, including Australia, Brazil, Canada, Japan, New Zealand, the US, and the UK, but not yet in the European Union.
NFC technology is widely utilized in mobile payment systems for its ease of use, allowing quick transactions with a simple tap. Integrating this technology into the crypto ecosystem could streamline crypto transactions by eliminating the need for complex QR codes or lengthy addresses.
Businesses could also use NFC to enhance customer engagement through loyalty programs that reward customers with crypto for purchases. Customers would simply tap their NFC-enabled devices at checkout to earn tokens, which could later be redeemed for discounts or other benefits.