Glossary
Near-field communication (NFC) has been around for a while. Early on, it mostly powered transit systems: public transport ticketing and electronic payment. Today the range of uses is much wider, from wearable technology to smartphone payments. This article is a short introduction to NFC and the many places it now turns up.
KEY TAKEAWAYS
- Near-field communication is a short-range wireless connectivity technology that allows NFC-enabled devices to communicate with each other.
- NFC technology is based on radio-frequency identification (RFID).
- Near-field communication began in the payment card industry and is evolving into a technology used in numerous industries worldwide.
What Is Near-Field Communication?
NFC is a set of standards that lets smartphones and similar devices establish radio communication by touching them together or bringing them within a few centimetres of each other.
NFC-enabled devices can read data from each other, or use it to communicate with tags or smart posters. To reach the Internet, they typically fall back on a Bluetooth or Wi-Fi connection. The same tap-to-read principle makes NFC a practical way to identify equipment in an asset management solution.
History of NFC
Merchants have relied on radio-frequency identification (RFID) for decades to identify and monitor merchandise inside stores. NFC is built on that foundation.
In 2004, Nokia, Sony, and Philips came together to form the NFC Forum, a non-profit dedicated to bringing the technology into everyday life.
Why Is Near Field Communication Used?
NFC is a set of communication protocols that let two electronic devices, usually one portable device such as a smartphone, talk to each other once they are within 4 cm (1.6 in). The point is wireless data exchange between devices.
Think contact information or URLs passed between NFC-enabled smartphones or tablets. That same mechanism lets users conduct secure transactions, share digital content, and connect electronic devices with a single touch. Because the transmission range is so short, the two devices have to sit close together.
What Devices Support NFC?
Smartphones, tablets, wristwatches, and smart cards all support near field communication today. Since 2004, the technology has steadily improved at sharing data and files.
Tapping or swiping one device against another moves data between them with no setup. What travels across can be contact information, music and video files, text messages, and more.
Near Field Communication Example
NFCs are everywhere, including the items you use every day. Your phone is one. An NFC can be placed on anything you want to access with a tap of another device, or even another person's hand.
It belongs to the set of standards known as RFID (radio-frequency identification) and uses similar radio frequencies to reach another device, which is why people sometimes call it RFID. That link is what lets you connect smartphones, tablets, and credit cards to share contact information or photos, pay bills, or shop.
Take Amazon's cashier-less store. The whole experience runs on NFC. You walk in with a phone that has the Amazon app, pick up whatever you want, and walk out. Everything you take is charged straight to your account. Change your mind on an item, and you don't have to do anything: put it back on the shelf and your checkout updates immediately. No queues, far less time spent shopping.
How Is NFC Used in Banks?
Banks have poured money into new technologies in recent years, and near-field communication is a favourite. It gives customers a convenient way to pay for goods and services. The trade-off sits with the bank's IT department, which has to do a lot of planning to support it.
The technology covers mobile payments and authentication, so users can pay for items with their smartphones at retail locations or log into secure areas. For banks, the payoff is faster, more secure financial transactions for their customers.
How Is NFC Used in Healthcare?
In healthcare, NFC improves the quality of patient care by enabling safe, secured data exchange, whether between two medical devices or between a device and a practitioner's mobile phone or tablet.
NFC-enabled medical devices send information via tags placed on patients' bodies, covering vital signs readings, medications, allergies, and so on. That data flows to the central system for further analysis and possible recommended actions, carried over Bluetooth or Wi-Fi.
How Is NFC Used in Airlines?
Japan was the first to bring NFC to airlines, and it made boarding more efficient. After the country introduced near-field communication for passport and ticket checks, the time spent confirming travel documents dropped by 66%. A plane carrying 450 people boarded in 15 minutes, where the same process had previously taken up to 45.
The ToolSense IoT hardware bridges the gap between physical assets and modern software solutions. With our IoT modules, you gain a much more in-depth understanding of your asset's performance.
How Is NFC Used in Hospitality, Travel and Leisure?
To stay relevant in a digital world, hospitality, travel and leisure brands need fresh ways to engage their customers. NFC is one of them: it creates an interactive experience that keeps people engaged.
It also opens a new channel for connecting with your brand. The same chip can handle check-in and check-out at hotels, on planes, or even at leisure spots like film theatres and parks.
What Is a Near-Field Communication Chip?
An NFC chip is an electronic chip built into smartphones or other devices to enable that same short-range communication. The chips work by touching against each other or coming into close proximity.
When you pay with NFC chips, they connect by touching or sitting within a few centimetres of each other. The technology also lets you share your Android content with others and even use your device to control other devices.
What Is a NFC Tag?
NFC tags let you carry out a range of data-related operations. In a shop, for example, a tag can hold information about individual items. Each tag has a unique function, so you can put it to work across many activities. NFC currently supports five different tag kinds.
A tag is a type of smart label that an NFC-enabled smartphone can read. It consists of a chip and an antenna, and it can store text, hold URLs, and interact with other devices or apps that support the kind of exchange the tag represents. The most common example is tapping one phone against another to set up a Bluetooth connection.
NFC tags are ubiquitous in Japan, where they are used to make payments at vending machines and elsewhere
Five Types of Tags Used in NFC
| Type 1 tags | They are used for mobile payment and other applications that require simple data storage. NFC Tags can be read by smartphones equipped with NFC technology. Their most common use is as follows, connecting Bluetooth devices, and is used in read-only applications. |
|---|---|
| Type 2 tags | This type is faster compared to type 1 in terms of transactions. It offers a variety of services like processing event tickets, daily transit tickets, low-value transaction, and URL redirects. |
| Type 3 tags | NFC type 3 tags are capable of storing data and transmitting it to an NFC enabled device. NFCs can use them for various purposes: retail, public transportation, electronic ID, membership cards, E-tickets, home electronics and health care devices. |
| Type 4 tags | Type 4 tag has the greatest versatility and memory. It ranges in price from modest to expensive, depending on how much memory you acquire. The most compelling reason to purchase this tag is security: it provides the capabilities required for real authentication. It supports ISO 7816 security. |
| Type 5 tags | Type 5 tags support ISO 15693 in security classification. One can use it to keep records of books in a library, ticketing and medical packaging. |
Safety Risks of Near Field Communication
The benefits look clear, but a few security risks come with them. The biggest is that your data or transaction details can be hijacked while you are trying to make a payment.
Every technology carries its own share of problems. Here, that means cyberattackers building fake NFC apps that impersonate real ones, or companies leaking customer data and information to con artists.
Benefits of Near Field Communication
- NFC has fostered contactless data transfer that is simple and rapid.
- People can move from one location to another with less manual friction.
- Installing and enhancing the system is simple.
- It has already been applied in various sectors and has the ability to adapt to any industry.
- It has also improved networking and social sharing by allowing users to share contacts and business cards with just a tap.
NFC Trends and Anticipated Growth
Near-field communication is a practical short-range technology that can change how businesses identify assets, exchange data and support contactless workflows. It's virtually on par with RFID technology in terms of functionality, but it has certain advantages over RFID.
New technologies bring new capabilities, and they also change how we go about everyday life. NFC is a clear case: it has reshaped how we spend money and shop.
Retail store or online shopping portal, it doesn't matter. Once NFC arrived, retailers saw how much more convenient checkout would be for customers if all they had to do was tap their phone on a secure element-based card emulation.
Where Does the NFC Go Next?
In mobile payments, Apple has Apple Pay and Google has Google Wallet. Near-field communication is the foundation for both.
Other companies want a piece of this lucrative market. Once NFC's security challenges are resolved, more of them are likely to invest in the technology.
Conclusion
NFC has already changed how payments are made, and it points to where the industry is heading. As more people adopt the method, businesses stand to gain more in return.
The technology is still young, with plenty of untapped potential. As smartphone use keeps growing, demand for NFC-enabled services will grow with it.
FAQ
Do You Need Wi-Fi for NFC?
NFC is a fast, wireless data transfer method that does not require an internet connection. It recognizes and communicates with electronics in the near vicinity. Compatibility is a must for these two devices.
Do I Have NFC on My Phone?
To check whether your phone supports NFC, head over to the settings, check on connectivity options and see if you have an NFC option on the list.
Should NFC Be on or Off?
Like any other connectivity service, Bluetooth or Wifi, you have to turn on NFC in order to use it. If you don't want to use NFC, you should turn it off to save battery and avoid potential security risks. Although NFC is considered secure, some security experts advise turning it off in public places where it could be vulnerable to hackers.
Is NFC Safe?
NFC transactions are considered safer than the traditional methods of swiping cards to the point of sale devices. Companies developing these products have used tokenization and encryption to secure their client's data in a move to improve security.
