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Apple’s Tap to Cash Threatens the Future of Crypto Payments

source-logo  beincrypto.com 11 June 2024 06:50, UTC

Apple’s latest iOS 18 introduces Tap to Cash, a seamless way to transfer money using Apple Pay. This feature lets users send money instantly by simply bringing their phones close together.

However, as Tap to Cash gains traction, it could potentially overshadow the utility of cryptocurrencies for payments.

Does Apple Tap to Cash Endanger Crypto Payments?

Crypto has been steadily gaining global acceptance, with 6.8% of the world’s population having cryptocurrencies. Despite its growth, widespread adoption faces significant hurdles.

Key among them is the lack of regulation, which leaves crypto assets vulnerable to security risks and volatility. Unlike traditional financial institutions, which are regulated and protected, cryptocurrencies operate in a decentralized environment. This lack of oversight can deter merchants and consumers.

Although the regulatory environment for cryptocurrencies is improving, it remains inconsistent. Countries like South Korea, Japan, and Germany have established clear frameworks. However, many others, including the United States and India, have ambiguous guidelines. This inconsistency hampers the confidence needed for broader adoption.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

Crypto Adoption Worldwide. Source: Tripple-A

Moreover, the user experience of crypto payments is often seen as cumbersome. The inconvenience of managing multiple wallets contrasts sharply with the simplicity of using debit cards or Apple’s Tap to Cash. Additionally, the scalability of blockchain networks lags behind that of mainstream payment processors, limiting their capacity to handle high transaction volumes efficiently.

Apple’s Tap to Cash leverages its existing ecosystem to offer a frictionless and secure payment method. This could appeal to users who prioritize convenience and security. With Apple Pay’s enhanced support for rewards and event tickets, the platform becomes even more attractive.

Read more: 7 Ways To Buy Bitcoin and Other Crypto With Apple Pay

Until crypto can match the ease and security of traditional payment methods, it may struggle to compete with innovations like Apple’s Tap to Cash.