Apple’s Partnership with Circle (USDC) Stablecoin Could Open a $15.7 Trillion Opportunity  

If USDC can get only 2% of the $15.7 trillion contactless payment sector value, it would be equivalent to about $314 billion.

Key Takeaways

➡ Apple announces it will allow third-party access to the NFC-based Secure Element payments feature. 

➡ The ability to make tap-to-pay transactions on iPhones could massively increase the demand for USDC.  

➡ USDC could open a $15.7 trillion potential market for Ethereum.    

Apple may have just announced one of the biggest changes in the world of digital payments. The most valuable tech company has now decided to allow third-party access to the iPhone’s NFC-based Secure Element payment feature.  

USDC Stablecoin’s Circle CEO Jeremy Allaire did not take long to hint that Circle’s USDC stablecoin will soon support tap-to-pay. Although Circle does not have a direct relationship with Apple, the NFC functionality will enable Web3 and crypto wallets to facilitate NFC transactions. To incorporate this new solution in their iPhone apps, developers will need to sign a business agreement with Apple, request the NFC and SE entitlement, and pay the associated fees.  

The update means that soon, iPhone users will be able to make payments by tapping their phones, confirming the transaction with FaceID, and using blockchain to process the payment. This change is also set to massively impact the Ethereum network’s activity since USDC is based on the same network.    

Circle CEO Bullish for USDC Payments on Apple’s iPhone    

On August 14, in a post on X (formerly Twitter), Allaire invited wallet developers to “start engines,” suggesting that USDC payments on Apple devices will soon be live.  

Image: Circle CEO Jeremy Allaire on X (previously Twitter)

This is a good time for Web3 developers to familiarise themselves with Apple’s SDKs to develop these tools, create iOS apps that will accept USDC, and facilitate tap-and-go payments for direct payments to merchants. Jeremy Allaire commented,

“If a iOS wallet that supports USDC enables this, they could enable a UX where a receiving device (like a Point-of-Sale, or another iOS device) could receive the transaction info via a tap.”  

The integration would not be limited to USDC and would also apply to other stablecoins and NFTs, although there is no official cooperation between Apple and Circle.  

USDC Could Open Up a $15.7 Trillion Potential Market for Ethereum  

Near-field communication (NFC) is a model that has revolutionised payment systems. It enables users to make payments by bringing their NFC-enabled devices close to the contactless payment terminal. According to the report, the global NFC payments market was valued at $25.8 billion in 2022 and is projected to rise to $507 billion by 2032.    

Using USDC with NFC on Apple devices could greatly boost the Ethereum network. Since USDC is one of the most popular stablecoins, it is well-placed to take advantage of the NFC market, which is expected to be worth over $507 billion by 2033. This is significantly higher than the combined values of Ethereum and USDC at the time of writing, which are $314 billion and $34 billion, respectively.    

According to Juniper Research, the value of contactless payments is projected to rise from $7.4 trillion in 2024 to $15.7 trillion by 2029, an increase of 113%. If USDC can get only 2% of that, it would be equivalent to about $314 billion. This potential growth indicates the opportunities available in the NFC technology market and, thus, Ethereum’s role in this market.    

The development might encourage more developers to build more apps and services that use the Ethereum network, especially around DeFi and payments. With more people holding ETH and interacting with the network, the activity may spur more users and developers to join.  

Bottom Line: Increased Demand and Usage for USD and Ethereum  

The ability to make tap-to-pay transactions on iPhones could massively increase the demand for USDC. If USDC is to be used for everyday transactions through Apple devices, the adoption rate would rise and increase demand for the Ethereum network and ETH, since each transaction requires ETH for gas fees.    

Ultimately, increased USDC transactions from Apple devices would strengthen Ethereum, improve network security, and further its dominance in the DeFi and stablecoin markets, which may result in a potential positive impact on the ETH/USD price movements.