The new version of iOS 18.1 allows developers to offer contactless transactions from their own applications using the NFC chip and Secure Element (SE) hardware module. Previously, this functionality was only available through Apple Pay and Apple Wallet.

Software developers from Circle made this move after regulatory pressure, including from the EU. Now, banks and other services will be able to compete with the Apple Pay platform. iPhone owners will now be able to set a third-party app as the default payment system, replacing Apple’s solution if needed.

Developers of iOS wallets supporting USDC will be able to create a user interface where the receiving device, such as a payment terminal or another iPhone, will receive transaction information through a tap.

An alternative wallet app on the iPhone can request user payment confirmation (e.g., via Face ID) and initiate a blockchain transaction to complete the payment.

Thanks to high-performance and low-cost blockchain networks, this opens up a powerful path for direct payments to merchants. The new functionality is also applicable to many other operations, such as purchasing NFTs, transactions with other stablecoins, etc.

Currently, iOS 18.1 is in beta testing. A public software release with open cryptocurrency payment support is expected closer to October.

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