Apple Teams Up with Circle (USDC) to Unlock $15.7 Trillion Ethereum Market

Circle, under the leadership of CEO Jeremy Allaire, is set to introduce USDC payments on Apple devices, marking a significant advancement in digital payments. Allaire hinted at the imminent arrival of tap-to-pay transactions using Circle’s USDC stablecoin following Apple’s decision to open the iPhone’s NFC payment feature to third-party developers.

This development has the potential to impact ETH prices significantly, as USDC operates on the Ethereum blockchain. Allaire, through a X(Formerly Twitter) post on August 14, 2024, urged wallet developers to prepare for the integration of USDC payments on Apple devices, signaling a forthcoming change in the digital payment landscape.

While Circle does not have a direct partnership with Apple, the NFC upgrade enables Web3 and crypto wallets to leverage NFC technology for transactions. This integration could lead to a user-friendly experience where an iPhone wallet supporting USDC allows for seamless tap-to-pay transactions, authenticated by the iPhone’s FaceID system and settled through blockchain transactions.

Allaire emphasized that this innovation could pave the way for direct-to-merchant USDC payments and other applications like NFTs for tickets and certificates. The integration of USDC into Apple’s ecosystem presents an exciting opportunity for Ethereum investors and the broader cryptocurrency sector.

NFC technology, known for revolutionizing payment systems, enables consumers to make purchases effortlessly by tapping or waving NFC-enabled devices near contactless payment terminals. The global NFC payments market, valued at $25.8 billion in 2022, is projected to reach $507.1 billion by 2032, with a growth rate of 35.9% from 2023 to 2032.

The integration of USDC with NFC payments on Apple devices could signify a significant shift, particularly for the Ethereum network where USDC is predominantly utilized. The potential market size for NFC payments presents a substantial opportunity for USDC, expected to surpass Ethereum’s and USDC’s combined market caps by 2033.

Juniper Research predicts a substantial increase in the total transaction value for global contactless payments, from $7.4 trillion in 2024 to $15.7 trillion by 2029, signifying a 113% growth over the forecast period. If USDC captures a fraction of this market, it could lead to a considerable increase in Ethereum’s network activity and value.

The partnership between Circle and Apple could impact Ethereum’s price through heightened demand for USDC, increased Ethereum adoption, and enhanced network effects and developer activity. The seamless integration of USDC with iPhone NFC payments may foster broader adoption of Ethereum-based services, driving network activity and value within the Ethereum ecosystem.

As more users engage with the Ethereum network, the increased activity could contribute to a rise in ETH’s price, creating a positive feedback loop that attracts additional users and developers to the platform. The potential collaboration between USDC and Apple could position Ethereum for significant growth in the upcoming market rally phase, bolstered by increased liquidity and network security.