Apple Announces iPhone Update That May Allow BTC Transactions2 min read
Apple has announced plans to launch Tap to Pay, a service that effectively turns the iPhone into a payments machine. Although unofficial, the service offers scope to facilitate payments made with BTC (BTC).
Firstly, the announcement was made by Tim Cook, the company’s CEO. via his Twitter, the CEO revealed the plans for how the system will work. With Tap to Pay, merchants who own an iPhone will receive contactless payments using their mobile devices.
In this way, the smartphone would function as a credit card machine. Payments are made using approximation technology, known as NFC.
We just introduced Tap to Pay on iPhone, a great way for millions of small businesses to accept contactless payments right from their iPhone. It’s easy, secure, and will be coming out later this year. https://t.co/w6P6oS7grm— Tim Cook (@tim_cook) February 9, 2022
Loophole for cryptocurrencies
According to Apple, Tap to Pay will be compatible with Apple Pay, credit and debit cards that have NFC and other digital wallets. And it is precisely at the point of “other digital wallets” that the possibilities open up.
Basically, the Apple Pay system allows the inclusion of multiple cards, as long as they offer access to the system. Among these options are various cryptocurrency cards such as Coinbase Card, Crypto.com and others. These cards may be accepted at Tap to Pay.
Therefore, unless Apple puts up a direct barrier, customers using the cards will be able to use their cryptocurrencies to make payments via the system. And companies will also be able to accept cryptocurrencies through the Apple system.
Coinbase Card, for example, is able to convert cryptocurrencies to fiat currency in real time, that is, without going through prior conversion. Soon, cryptocurrencies like BTC could take advantage of this loophole.
However, this is an indirect conversion, as Apple is unlikely to open direct support for BTC in Apple Pay. But with cards, Tap to Pay would convert the user’s cryptocurrencies to match the requested dollar amount, making the purchase.
In August 2021, Coinbase performed an integration with Apple Pay and Google Pay, allowing users to purchase cryptocurrencies on its platform. As a result, US customers gained the option to purchase cryptocurrencies using debit and credit cards.
Nor can we forget that in November 2021, Apple CEO Tim Cook revealed that he has cryptocurrencies in his portfolio. According to him, this is “part of a diversified portfolio”, which has brought greater legitimacy. In this sense, allowing the use of cryptocurrencies as payment in Apple Pay would be a natural step.
Apple intends to launch the Tap to Pay feature in Apple Stores. The service will be compatible with iPhones XS and later generations.