Near Field Communication, typically abbreviated NFC, is a technology that establishes radio communication between devices in close proximity. While NFC technology is not yet ubiquitous, it is being incorporated into more and more smart phones as well as into advertising campaigns and store checkout points. NFC allows a smart phone user to touch his phone to any other device with an NFC chip in it to establish an instant connection. Using this technology, two smart phone users could exchange contact information or files, or even play a two-person game together simply by briefly touching phones.
Another use for NFC technology that both retailers and consumers are excited about is making purchases by simply touching your phone to an NFC-enabled device at a point of sale terminal. This eliminates the need to use credit or debit cards, which could easily be lost or stolen during the checkout process. The two NFC devices do not actually need to be touching for a connection to be established, but they do have to be within an inch and a half of each other, which makes it difficult for any other devices to pick up on the information being transmitted. Additionally, when used for transmitting payment information a secure channel and sends encrypted data to further reduce the possibility of a third party stealing the information.
NFC chips can also be utilized in a passive manner and may eventually take the place of QR codes in some advertising campaigns. Static NFC chips can be embedded in posters, displays or virtually anywhere. When a smart phone user touches his phone to the chip, the phone would collect information or files from the chip. This time of communication is one-sided, which means the phone can gather information from the chip, but the chip cannot collect any information from the phone.
Several cell phone service providers are exploring the possibilities of NFC technology, as are credit card companies, PayPal and even Amazon. There are even a few rumors going around about Apple incorporating NFC technology into the iPhone 5. As more and more smart phones become NFC enabled, you’ll see an increase in the number of businesses utilizing NFC technology to collect payments and provide information. Once this technology becomes more prevalent, you’ll be able to leave your house each day with just your smart phone in tow. No longer will you need to carry around a bulky wallet filled with credit cards, debit cards, discount cards and transit passes. All you’ll need to do is touch your cell phone to an NFC device and you’ll be set.
