Apple is taking a groundbreaking step into the digital payments space by enabling developers to offer NFC contactless transactions.
Recently, Apple, which is the largest public company in the world, announced the integration of NFC contactless transactions into its iOS mobile operating system, starting with iOS 18.1.
The technology company stressed that its new functionality will not only transform the way users interact with their iPhone devices but will also change the way digital transactions are carried out.
Apple unlocks NFC contactless payments
With the release of iOS 18.1, Apple will allow developers to integrate NFC transactions within their apps, using the devices' Secure Element, it said in a statement. release recent.
This decision marks a radical change for the company, as until now only the Apple Pay and Apple Wallet apps could access this functionality. However, starting with the announced version, Apple will allow third-party applications to implement contactless payments on their devices for a variety of uses, including in-store payments, transportation cards, IDs, event tickets, and much more.
“NFC and SE APIs leverage Secure Element, an industry-standard certified chip designed to securely store sensitive information on the device,” Apple said.
Although this implementation is not directly related to cryptocurrencies, Jeremy Allaire, co-founder of Circle, has highlighted its importance in opening the doors to cryptocurrency payments from Apple mobile devices.
At X, Allaire said that blockchain developers will be able to begin integrating cryptocurrencies and non-fungible tokens (NFTs) into iOS apps, taking advantage of new NFC functionality. According to Allaire, this opening by Apple will allow wallet apps, including those that support its stablecoin USDC, pegged to the US dollar, to offer innovative payment experiences.
The implementation of NFC contactless transactions in iPhones not only represents an expansion of the capabilities of devices and developers, but could also foster competition in the digital payments market, Allaire said. The technology could open the door for new applications and solutions to emerge in Apple's secretive ecosystem.
Circle Urges Developers to Integrate Cryptocurrencies and NFTs
Taking advantage of Apple’s new release, Allaire urged the crypto and blockchain industry developer community to start integrating cryptocurrencies and non-fungible tokens into iOS apps. He highlighted that the new NFC functionality has created a new path for cryptocurrency wallets to transact more efficiently. This means that users will be able to make payments directly to merchants using crypto assets, which could change the dynamics of digital commerce and the acceptance of cryptocurrencies and digital assets in the market.
On the other hand, according to Allaire, this integration will not only benefit wallet app developers, but could also facilitate the use of NFTs for event tickets and other digital certificates, thus expanding the reach of cryptocurrencies in various industries.
“Until Apple did this, the only payment app or wallet that could use NFC on iPhones was Apple Wallet and Apple Pay. By opening up this capability to developers, other wallet apps, for example Web3 wallets and crypto wallets will be able to invoke NFC for transactions… This applies to many things outside of USDC: NFTs for tickets, other certificates, other stablecoins like EURC, etc.”, said Allaire.
What Are NFC Payments?
Near Field Communication (NFC) is a technology that enables data transfer between devices over short distances, typically within 10 centimeters. This technology is commonly used in mobile payments, where users can make transactions by simply bringing their devices close to a compatible payment terminal.
NFC payments are fast, secure and convenient, making them a popular choice for consumers and merchants. The technology uses encryption to protect information during transmission, helping to prevent fraud and data theft. Additionally, NFC payments can be integrated with other services, such as loyalty and rewards programs, further enhancing the user experience.
As Apple opens up the door for developers to use NFC in third-party apps, Allaire expects the adoption of technologies like cryptocurrencies, stablecoins and NFTs to expand even further on iPhone devices.
The crypto community's mixed reaction to NFC transactions on Apple
While Allaire suggests that Apple's decision to enable NFC payments through third-party apps is a positive development and an opportunity for the crypto and blockchain industry, the news has generated a mixed reaction in the cryptocurrency community.
Multi-faceted entrepreneur Aaron R. Day, a fellow at the Brownstone Institute and president and CEO of the Daylight Freedom Foundation, commented that beyond an innovation, Apple's recent launch could pose a threat to the principles of decentralization and autonomy that are fundamental to the cryptocurrency industry.
Decentralization and freedom: Fundamental principles of cryptocurrencies
From his X account, Day said concerns about the nature of this development, stressing that the reliance on Apple-approved wallet apps and the need to comply with regulations imposed by the company and other entities can be perceived as a step back in the philosophy of cryptoassets and blockchain technology.
“This is not a peer-to-peer system, my friends. This is a Rube Goldberg machine, a complex and convoluted system of middlemen, each taking a cut, each adding a layer of risk and uncertainty to the transaction.”, commented the expert.
Furthermore, the complexity of the system, which involves multiple intermediaries ranging from Apple to stablecoin issuers and banks, Day argues that rather than promoting a decentralized and free financial system, the tech company's latest development could perpetuate a more traditional model of financial intermediation.
In conclusion, for many, Apple's opening to NFC payments represents a significant opportunity for developers and consumers, but it also raises challenges and questions about the future of cryptocurrencies and their integration into an ecosystem dominated by large corporations.
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