Stablecoins continue to break new ground, and USDC is leading the charge as it cements its place as a favorite among regulated stablecoins. In response to growing market demands and new opportunities, Circle has announced plans to integrate tap-to-pay functionality using USDC. Circle’s CEO, Jeremy Allaire, revealed the company’s latest venture, stating,

“Tap to pay using USDC on iPhones incoming soon. Wallet devs, start your engines.”

Allaire further explained the mechanics of this new feature: if an iOS wallet that supports USDC enables it, the receiving device, such as a Point-of-Sale (PoS) system or another iOS device, could receive transaction information via a tap. He elaborated,

“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.”

Circle emphasized that when combined with a high-performance, low-fee blockchain, this technology could create a robust pathway for direct-to-merchant USDC payments.

Increased Demand for Regulated Stablecoins Boosts USDC

Circle’s decision to introduce this feature on iPhones comes amidst a rising demand for regulated stablecoins like USDC. In June, Circle became the first company to comply with MiCA’s regulations, facilitating its operations within the European Union. This compliance led to an increase in USDC’s market cap share, which grew from $32 billion to $34 billion soon after.

The surge in market share comes after USDC's market cap had declined to $23 billion in 2023 following the collapse of SVB. Along with the market cap increase, trading volumes for USDC have also risen significantly on a yearly basis. This uptick reflects the growing preference for secure and regulated crypto assets among investors.

Apple Opens NFC Capabilities to Third-Party Developers

Circle’s move to integrate tap-to-pay functionality using USDC on iPhones was enabled by Apple’s decision to allow developers to offer in-app NFC transactions using the secure element with iOS 18.1. This update allows developers to set a default contactless payment app accessible by clicking the iPhone’s side button. Circle’s CEO noted,

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

This new capability is expected to benefit not just USDC, but a variety of other web3 platforms and projects, including NFTs, certificates, and other stablecoins such as EURC.

Impact on USDC’s Market Position

USDC has seen sustained market share growth over the past month, with its exchange reserves rising significantly. Data from Cryptoquant shows that USDC’s exchange reserves increased from $2.9 billion to $3.08 billion over the past week alone, indicating heightened demand for USDC as a medium for purchasing other cryptocurrencies.

The integration of USDC into iPhone’s tap-to-pay functionality is expected to broaden its user base, further driving market share, revenue, and profitability for Circle.