After taking a cautious approach to crypto for years, Apple will now integrate with Coinbase to allow crypto purchases in Apple Pay.
Coinbase said that app makers will soon be able to integrate the capability to buy crypto through Apple Pay directly within their apps using its Coinbase Onramp product. Previously, converting fiat currencies into crypto on Apple Pay was often onerous, requiring fees or redirecting users to external sites or apps. The upcoming integration—which is now available—will not require app developers to take any additional steps to incorporate crypto services.
“Coinbase has been a proactive leader in the U.S. for years, and the integration with Apple Pay is just one of many examples,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “They don’t wait for regulatory clarity; Coinbase has tried their hardest to act compliantly while taking steps to push innovation.”
“Coinbase wouldn’t exist if they would have waited for a regulatory framework, and both crypto-native and traditional finance companies should take note,” he said.
A Major Step
The union between Apple Pay and Coinbase is expected to further accelerate the mainstream adoption of crypto, highlighting the continued convergence of two emerging payment trends—crypto and digital wallets.
The Coinbase integration is a major step for Apple, which has been somewhat reluctant to grant digital assets and crypto platforms access to its expansive ecosystem. Just a few years ago, Coinbase CEO Brian Armstrong said that Apple would not allow many features within the Coinbase app on its platform, even suggesting that there were potential antitrust issues in Apple’s stance toward crypto.
Far-Reaching Implications
Though Apple Pay has had other crypto app integrations with Binance and MetaMask, the Coinbase integration could have much more far-reaching implications due to the tech giant’s massive user base and the crypto exchange’s U.S. dominance.
The Coinbase integration should help Apple Pay users who aren’t as familiar with crypto concepts learn more about the array of cryptocurrencies that are available and develop a comfort level with crypto.
To foster that adoption, Coinbase will offer free USDC stablecoin transactions for both crypto on- and off-ramping. The integration will also give Apple Pay users access to more than 60 fiat currencies, 100 cryptocurrencies and over 20 blockchains.
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