Coinbase now allows you to buy crypto with Apple Pay in third-party apps

Coinbase added Apple Pay support to its Onramp platform: users of third-party apps to benefit

Cryptocurrency and new technology go hand in hand. Firms and businesses need to collaborate for the best user experience. Now, announcements with exactly that news came out. Coinbase announced an integration with Apple Pay. This allows app makers to build the ability to buy crypto using the iPhone function directly into their apps.

This process was complicated in the past, with high fees and the need to visit multiple websites or apps. By adding Apple Pay, Coinbase makes crypto purchases more user-friendly and accessible to everyday consumers^[1]. This move also shows Apple’s growing willingness to embrace crypto, a shift from its previous stance and a potential sign of improvement in its relationship with the crypto world.

This change comes at a specific time in politics. Pro-crypto leaders get to rule countries and implement particular changes in their systems. President-elect Trump has indicated that his administration will more support the crypto industry, which has likely contributed to the rising bitcoin price, nearing $100,000.

The head of the SEC, Gary Gensler, recently announced he would step down when Trump takes office, ending his tough stance on crypto. Trump has not named a possible SEC chair so far, but as the announcement should be released any day now, many think that Paul Atkins is most likely to take the SEC chair position. He was an SEC commissioner, and support for him has been growing since he expressed support for Trump^[2].

Apple had to change its view on cryptocurrency adaptation

Coinbase CEO Brian Armstrong had previously criticized Apple for lacking support for the crypto space. In 2022, Armstrong claimed Apple might face antitrust issues, alleging the company had banned certain features from Coinbase’s app.

Launched in 2014, Apple Pay now has around 500 million active users, and in the U.S., it holds over 90% of the contactless payment market.

When Apple launched its credit card in 2019, the company made it clear that cryptocurrency purchases would not be allowed. Apple has also pulled several crypto and NFT apps from its App Store in the past, including major exchanges like Binance and Kraken in India.

However, in a 2021 interview, Apple CEO Tim Cook said he was exploring the possibility of allowing Apple Pay to purchase crypto, noting that he personally owns crypto. Despite this, Cook emphasized his desire to keep Apple separate from the crypto industry.

Buying crypto with traditional currency, especially for the first time, can be a slow and tedious process. It often involves jumping between exchanges and dealing with lengthy Know-Your-Customer (KYC) checks. The integration with Apple Pay aims to simplify and speed up this process, since Apple Pay is already widely used and built into most of Apple’s devices.

Simplifying cryptocurrency transactions for better user experience

Nemil Dalal, head of Coinbase’s developer platform, explained it well: “On-ramp products let you bring fiat into crypto, and it’s been a painful process in the past. With Onramp, the idea is that in just seconds, using a familiar wallet like Apple Pay, which 60 million Americans already use, you can link your bank account, transfer money to the blockchain, and start using it however you like.”

Dalal added that you can already buy crypto on Uniswap through Coinbase Onramp, and a blog draft mentioned Moonshot, an app for buying memecoins like Dogwifhat and Iggy Azalea's MOTHER, now accepting cash deposits via Apple Pay.

Since Apple Pay is already connected to users' bank accounts, it comes with some built-in KYC checks. Because of this, Coinbase’s Onramp team can rely on Apple’s KYC procedures to make things smoother for users.

As part of this new integration, users who purchase the USDC stablecoin via Apple Pay through Coinbase Onramp won’t have to pay any transaction fees^[3].