What is NFC?
Near Field Communication (NFC) technology makes life easier and more convenient for consumers around the world by making it simpler to make transactions, exchange digital content, and connect electronic devices with a touch.
How NFC Works :
It is the technology with the radio frequency which allows communication between two devices that are near. They allow the exchange of information or performance of security payment. The designers claim that NFC will simplify to its extreme the way of interaction between the consumers device and guarantee a fast and secure information exchange.
From the technical point of view NFC technology is an extension of ISO 1443 (which defines the standard of RFID tag Mifare at 13,56 Mhz) and both of ECMA and ETSI standard, it combines the integration of one smart card with one device or terminal. All NFC devices allow the reading and writing of information of high speed (424 Kbis/s). NFC connection happens when, so to say, they make a wireless connection which is compatible with Bluetooth and Wi-Fi. Since the way of function is highly limited it guarantees safe communication avoiding “sniffing” data.
One NFC device can communicate either with already present readers and cards ISO 1443 as well as with other NFC devices. So it is already compatible with the existing infrastructures RFID for payments and public transport. The NFC integration into cell phones and multimedia readers is already being tested, as the iPod can be, which enables buying and transferring of multimedia material.
For the first time such a technology was integrated into the SIM card allowing the cell phone operators to insert NFC services directly into the card itself. Thanks to such a technology costumers will be able to exchange between themselves the contents like pictures, files and data, in a more simple and comfortable way. Besides, NFC technology introduces payments and RFID transactions- all these with a simple touch of cell phone.
Uses of NFC
Emerging NFC standards allow customers to quickly purchase products and transfer secure information by touching devices. NFC allows companies to reduce staffing, printing, and point of sale costs. Globally, 100 million people use mobile payment outside the U.S., but only 3.5 million use the technology in the U.S.
Social networking
NFC simplifies and expands social networking options:
§ File Sharing: Tap one NFC device to another to instantly share a contact, photo, song, application, video, or website link.
§ Electronic business card: Tap one NFC device to another to instantly share electronic business cards or resumes.
§ Electronic money: To pay a friend, you could tap the devices and enter the amount of the payment.
§ Mobile gaming: Tap one NFC device to another to enter a multiplayer game.
§ Friend-to-friend: You could touch NFC devices together to Facebook friend each other or share a resume or to "check-in" at a location.
Bluetooth and WiFi Connections
NFC can be used to initiate higher speed wireless connections for expanded content sharing.
§ Bluetooth: Instant Bluetooth Pairing can save searching, waiting, and entering codes. Touch the NFC devices together for instant pairing.
§ Wi-Fi: Instant WiFi Configuration can configure a device to a WiFi network automatically. Tap an NFC device to an NFC enabled router.
eCommerce
NFC expands ecommerce opportunities, increases transaction speed and accuracy, while reducing staffing requirements. A Personal identification number (PIN) is usually only requried for payments over $100 (in Australia).
§ Mobile payment: An NFC device may make a payment like a credit card by touching a payment terminal at checkout or a vending machine when a PIN is entered.
§ PayPal: PayPal may start a commercial NFC service in the second half of 2011.
§ Google Wallet is an Android app that stores virtual versions of your credit cards for use at checkout when a PIN is used.
§ Ticketing: Tap an NFC device to purchase rail, metro, airline, movie, concert, or event tickets. A PIN is required.
§ Boarding pass: A NFC device may act as a boarding pass, reducing check-in delays and staffing requirements.
§ Point of Sale: Tap an SmartPoster tag to see information, listen to an audio clip, watch a video, or see a movie trailer.
§ Coupons: Tapping an NFC tag on a retail display or SmartPoster may give the user a coupon for the product.
§ Tour guide: Tap a passive NFC tag for information or an audio or video presentation at a museum, monument, or retail display (much like a QR Code).
Identity documents
NFC's short range helps keep encrypted identity documents private.
§ ID card: An NFC enabled device can also act as an encrypted student, employee, or personal ID card or medical ID card.
§ Key card: An NFC enabled device may serve as car, house, and office keys.
§ Rental Car and hotel keys: NFC rental car or hotel room keys may allow fast VIP check-in and reduce staffing requirements.