Circle to Integrate Tap-to-Pay Using USDC on iPhones

ave 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,

Highlighting Stablecoin Growth and Circle's Tap-to-Pay Integration

Stablecoins have seen a remarkable rise in popularity, becoming a staple in the cryptocurrency ecosystem. Among the various stablecoins, USDC has emerged as the preferred choice, especially in the realm of regulated stablecoins. In a bid to capitalize on this demand and expand USDC's reach, Circle is set to integrate tap-to-pay functionality for USDC on iPhones.

Announcing this development, Circle's CEO Jeremy Allaire stated, "Tap to pay using USDC on iPhones incoming soon. Wallet devs, start your engines."

Delving into the technicalities, if an iOS wallet that supports USDC enables this feature, it will allow a receiving device, such as a Point-of-Sale (PoS) system or another iOS device, to wirelessly transmit transaction information to the wallet via a simple tap.

"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," explained the CEO.

According to Circle, when combined with the high-performance and low-fee blockchain that USDC utilizes, this integration will pave the way for seamless and efficient direct-to-merchant USDC payments.

Rising Demand for Regulated Stablecoins

Circle's move to integrate tap-to-pay functionality for USDC on iPhones comes amid increasing demand for regulated stablecoins in the cryptocurrency market.

In June, Circle became the first company to fully comply with MiCA's regulations, enabling it to seamlessly carry out its operations within the European Union. Following this development, USDC's market cap share has surged, increasing from $32 billion to $34 million.

Chart showcasing USDC's market cap share. Source: IntoTheBlock

This growth in market share is particularly noteworthy considering USDC's decline to $23 billion in 2023 after the collapse of Silicon Valley Bank (SVB).

Moreover, the stablecoin's trading volume has also witnessed a substantial increase on a yearly basis. This surge is indicative of the rising demand for regulated stablecoins, with investors showing a preference for safe and secure crypto assets.

Chart displaying USDC's yearly trading volume. Source: Defillama

Apple Opening Up Its NFC Chip to Third Parties

It's worth noting that Circle's integration of tap-to-pay functionality for USDC on iPhones is possible thanks to Apple's recent decision to allow developers to offer in-app NFC transactions using the secure element starting with iOS 18.1.

This move enables developers to set a default contactless payment app that can be accessed by quickly pressing the iPhone's side button. As explained by Circle's CEO, only Apple Pay and Apple's Wallet have been permitted to use this functionality until now.

"Until Apple did this, the only payment app or wallet that could use NFC on iPhones was Apple’s Wallet and Apple Pay," stated the CEO.

This integration not only benefits a single stablecoin but also opens up opportunities for various other web3 platforms and projects to integrate their services. Such projects include NFT marketplaces, certificate authorities, and other stablecoins like EURC.

Impact on Circle's USDC Stablecoin

Over the past month, USDC's market share has seen a sustained increase, indicating growing demand for the stablecoin.

Equally, the stablecoin's exchange reserves have also risen exponentially. In fact, according to data from Cryptoquant, the exchange reserves increased from $2.9 billion to $3.08 billion over the past week alone.

Chart showing USDC's exchange reserves over the past month. Source: Cryptoquant

This increase in exchange reserves suggests that a greater demand for USDC is observed to purchase other cryptocurrencies. Simply put, it indicates the greater use of USDC by crypto investors during this period.

Hence, the integration of USDC into the iPhone's tap-to-pay feature will grant the stablecoin access to a vast user base. A larger user base will further propel USDC's market share, while also contributing to increased revenue and profitability for Circle.