Over the years we have seen tremendous growth in wireless technologies. One such technology is NFC (Near Field Communication). NFC is a technology that comes embedded in almost every smartphone. This wireless technology allows users to use tags with their smartphones when in close proximity (Usually 4cm) providing a safe interaction between electrical devices. NFC applications include contactless transactions such as transit ticketing, access to online digital content, cashless payments and simple data transfers such as exchanging contact details, emails, text, images, business cards, and so on.
NFC developed from RFID technology which combines both the reader and smart card interface into a single device. NFC chips use a specific RFID frequency of 13.56MHz. It only works if the chips are placed close to each other. NFC has three modes of operation.
- Peer –to-peer communication: This mode allows NFC equipped to exchange data with each other. The device sending the information is the active device while the one receiving information is the passive device.
- Read/Write Mode: In this mode, data transmission is one way. The active device connects with the other device to read information from it.
- Host Card Emulation Mode: These NFC devices act as contactless credit cards.
NFC allows users to perform contactless transactions and access digital content with a single touch. Before looking at the uses and applications of NFC technology, let’s first look at the reasons why you need to adopt NFC technology.
Let’s now look at some of the uses of NFC technology.
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Uses of NFC Technology
There are many applications of NFC technology, from contactless payments, to streaming other technologies such as Bluetooth pairing. The combination of faster transactions and close range data transfer, and ease of use make NFC technology ideal for environments that have a requirement for location specific access. For instance, if you don’t want anyone to access your credit card from more than a few centimeters away. So, what can NFC be used for? The main application of NFC is in contactless payments.
NFC Contactless Payment
Do you know that you can use your smartphone both as an ATM machine and credit device. NFC technology makes this possible. Instead of swiping your card or fumbling with cash, all you need to do is to wave is to swipe your card at a point of sale terminal with an NFC reader/device. Once the transaction goes through, you will receive a notification wanting you to authenticate the payment.
Another security feature is that NFC readers can only connect with one NFC Payment device at a time. This eliminates the possibility of one customer accidentally paying for another customer’s goods or service. You can store multiple debit and credit cards on your mobile device. With this, you no longer need to carry cards in your wallet.
This process is lightning fast, making NFC payments one of the most secure and convenient payment methods. The contactless connection between your smartphone and the NFC reader is established with the help of radio waves similar to RFID labels used in warehouses, and tracking applications. So, what are some of the NFC payment applications?
Leading NFC Payment Applications
Google Pay
Google Pay is an NFC payment app for Android smartphones. You can use Google Pay to make in-app payment in stores and vending machines. You can also use it to send money to your friends and family. It allows you to use most of the credit and debit cards of major brands such as American Express, Discover Cards, and many more. Besides, you can also use cards issued by major banks such as Wells Fargo, Citi, and Bank of America.
Apple Pay
Introduced in 2014, Apple Pay is available for iPhone 6 and later versions along with Apple Watch and iPad (iPad mini 3 and iPad Air 2 and later). It allows customers to make contactless payments at stores. It has better security because of the Touch ID function. No transaction can go through unless you use your fingerprint to accept any payment transactions. Besides, your bank details are safe because it use a tokenization payment technology.
Tokenized payments are payments in which your credit card details are substituted by a token when performing payment transactions. This makes the payment more secure because your credit card details can’t leak.
Life Lock
Life lock wallet is an NFC application that allows you to store your credit, debit, ID, insurance number, and loyalty cards. It also has a built in identity theft protection service which allows it to scan over a million transactions per second to detect and notify you of any potential threats to your identity. It also provides an identity restoration specialist for victims of identity theft.
MasterCard PayPass
PayPass is the NFC payment feature in the banking cards of MasterCard. This card allows you to tap and pay make payments at PayPass terminals. To reduce the risk of theft or loss of card, all payments have a unique electronic encryption. Additionally, it has an automatic check feature which eliminates possibilities of payment duplication due to accidental touch.
Visa PayWave
This technology allows users to make quick and secure purchases at stores that accept the Visa payWave card. It is a secure payment technology that reads and receives credit card payments. A Visa payWave payment system has an integrated computer chip that sends payment information to a secure point of sale reader. These transactions as are safe as the payments made by magnetic tape. Besides, it gives you control over the payment device reducing the risk of fraud.
What are the Benefits of NFC payments?
Secure
Using NFC payments is more secure than carrying physical cards. This is because wallets such as Apple Pay tokenize your bank details into something fraudsters can’t use. Even if your phone gets stolen, your credit card information stays protected. In addition it is impossible to extract these tokens because they change with every transaction. The fingerprint technology in NFC mobile apps such as Apple Pay, add a layer of security to the payments system.
Faster
Compared to cash, chip or PIN cards payments, NFC transactions are a lot faster. This is because users only have to tap the NFC card or place their NFC enabled smartphones near the reader. This is also an advantage to the merchant because faster payments mean more sales. Customers don’t waste time entering their PIN or searching for cash. With NFC, it only takes seconds to make payment.
Convenient
NFC payments are convenient because it’s very easy for users to make payments via their smartphones or tablets. It is easy to understand the overall payment process. You only need to make a few taps to make payments.
Versatile
NFC covers different disciplines and service. NFC allows you to make payments in places such as
- Fuel pumps
- Movie tickets
- Parking garages
- Merchant payments
- Bank cards
- Rewards and
- Transits tickets
Conserve Battery
There are other wireless technologies that also allow us to make payments at points of sale. An example is Bluetooth. However, NFC technology conserves the battery power because it requires less power to complete the transaction. This makes it ideal for use in NFC point of sales that process numerous transactions per day.
Improved Checkout Experience
Long queues at the point of sale can turn away potential customers. However, NFC technology can boost the speed of the checkout process making the queues shorter. This enhances the experience of both the customer and shop owner.
Drawbacks of NFC Payments
Expensive
Although NFC technology comes with a myriad of benefits, these benefits come with a cost. This cost makes it challenging for smaller businesses to integrate NFC technology into their system. Small companies find it difficult to maintain the turnover and increase profits because the cost of installing the NFS software and hardware along with hiring technicians is high.
Security
Although NFC payments technology is a secure payment option, it’s not completely free from risks. Mobile phone hacking is on the rise as hackers are developing new ways of duping customers and gaining access to their financial data. This makes NFC technology vulnerable to attacks from hackers discouraging customers and merchants from using this technology to make payments. However, do not be afraid because there are security measures that make NFC payments safe from online frauds.
Availability
Another drawback of NFC technology is lack of availability. Although Apple Pay and Google Pay are growing in popularity, not all retailers are happy about it. Because of this, NFC technology is not available in many stores.
NFC contactless Payment is not the only use of NFC technology. So, what are the other uses of NFC technology?
More Uses of NFC Technology
1. To Share files, apps and contacts: NFC technology allows you to share almost everything with your friends via their NFC enabled devices.
2. To Link with NFC tags: You can use your NFC enabled smartphone to link with tags such as your door lock, music player, and light switch and so on.
3. Identity Validation/Access Control: Access point systems such as in banks use NFC to validate identity before allowing access to secure locations.
4. Attendance Tracking: NFC technology can be used in ID cards and badges for record keeping and attendance tracking.
5. Asset Identification and Tracking: NFC tags can also be used to store critical information regarding assets attached to serial numbers, last maintenance, purchase date, etc.
6. Wireless Pairing: You can use NFC tags for quicker pairing between a Bluetooth device with an NFC tag and an NFC capable device like an Android phone.
7. Transportation: Buses and taxis can use NFC tags to direct a passenger to an application, URL or payment method.
8. Networking: NFC technology provides a quick and easy method of exchanging contact details such as business cards at networking events.
9. Healthcare: NFC tags can be used to provide medical professionals with information about what treatment a customer needs. They can also be used to keep track of a patient’s record such as laboratory data.
Bottom Line
NFC technology has a wide range of uses and applications. Its use in contactless payment platforms make it widespread. That’s all about what NFC technology can be used for. I hope that you found this post informative. Keep it here for related articles.
