iOS 18.1 empowers third-party apps with NFC payment integration, enabling blockchain payments and secure transactions without Apple Pay.
Circle to introduce USDC tap-and-go iPhone payments, leveraging Apple's expanded NFC features for seamless blockchain transactions.
Apple's iOS 18.1 expands NFC use, enabling in-app contactless payments, digital keys, and secure IDs with robust privacy measures.
Apple plans to allow third-party developers to develop iPhone secure payment chips, enabling them to integrate blockchain-based payment functionality. This follows a policy shift in iOS 18.1, which allows third-party developers to use an iPhone's NFC feature for in-app contactless transactions.
Jeremy Allaire, CEO of Circle, highlighted this development's potential in a post on X (formerly Twitter). Allaire revealed that Circle, the company behind USDC, plans to introduce tap to pay using USDC on iPhones. This will enable point-of-sale systems to communicate directly with iPhones, specifying the blockchain address for USDC payments or the amount to be paid.
https://twitter.com/jerallaire/status/1823772497969602981
The iPhone's wallet app could prompt users to confirm the payment using FaceID, and the transaction would be settled over the blockchain. This move will simplify and accelerate blockchain-based payments, particularly for stablecoins like USDC, by leveraging Apple's user base and tap-and-go payment methods.
Allaire also mentioned that this update would apply to USDC and other stablecoins and non-fungible tokens (NFTs) for various uses, such as event tickets and certificates.
NFC capabilities expanded in iOS 18.1
Apple has increased developers' control over the iPhone's Secure Element, allowing for more contactless transactions with iOS 18.1 without using Apple Pay. This change allows developers to offer various in-app NFC features, such as in-store payments, digital car keys, transit passes, corporate IDs, hotel and home keys, loyalty programs, and event tickets, without relying on Apple Pay.
Apple has also introduced new APIs for third-party apps, allowing them to read NFC tags, initially available in the US, UK, Australia, Brazil, Canada, Japan, and New Zealand, with additional regions expected to follow.
Security and Privacy Measures
Apple has introduced NFC capabilities to third-party developers but prioritizes security and privacy. The Secure Element, an industry-standard chip, will manage transactions using Apple's security features, such as Secure Enclave and biometric authentication.
Developers must enter a commercial agreement, request specific entitlements, and pay associated fees to use these APIs. This ensures that only authorized developers can access these APIs, maintaining user data integrity and privacy.
Developer and Industry Impact
Apple's new capabilities are expected to impact mobile payment solutions and digital identity applications significantly. This allows third-party developers to integrate contactless transactions directly into their apps, benefiting fintech companies by creating specialized payment apps and services.
The update could also lead to enhanced loyalty programs, sophisticated digital identity solutions, and more secure access management for corporate and student systems.
Apple is set to launch iOS 18.1 with a developer beta in select regions, providing early access to new NFC APIs. As these capabilities become available, developers and businesses worldwide will explore new applications and services using Apple's NFC technology.
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