What is NFC – The Ultimate Guide

Article by Dilan Fernando    No Comments

What is NFC? It is a short-range wireless technology that allows communication between NFC-enabled objects.

In the present world, we have come to a level of technology where we can transfer information with less human interaction. And when it comes to communication, there are many methods like Bluetooth, QR, iBeacons, barcodes, etc.
In the business world, most marketers are using QR code technology to promote their products or websites taking into consideration some of the benefits (e.g. less advertising cost, instant information available to consumers, etc.) of using it. But there are limitations when using QR codes such as:

• Remain the same once generated.
• It is a one-way transaction.
• It takes too long to scan a QR Code.

However, these limitations and situations can be overcome with the use of Near Field Communication Technology.

What is NFC?

It is a short-range wireless technology that allows communication between NFC-enabled objects. NFC is based on Radio Frequency Identification (RFID) and it is a technology that can make an easier and more convenient world for us by enhancing the way we make transactions, exchange content and connect devices.

There are different types of Near Field Communication-enabled tags available in the market as shown in the image below.

How does it work?

As mentioned in the previous section “What is NFC”, it is short ranged RFID technology which uses the wireless data transfer method that detects and enables the technology in close proximity to communicate. The main advantage is that, to use this technology internet is not needed.

As shown in the image below the NFC tag gets the energy from the NFC enabled device and the tag starts transmitting data to the device/reader.

It has two modes,

• Active Mode: In this mode, both devices are generating their own RF fields. This would be the case when two mobile devices are being used to exchange data.
• Passive Mode: In this mode, while the devices in active mode generate the RF field the other devices uses the energy to power itself and communicate.

The active device is usually the “reader” and the passive device is the “tag”. The NFC-equipped phone can act in both active and passive mode.

Benefits of using Near Field Communication

From a business point of view, how can a company benefit from using NFC Technology?

• Can record the time checked in and out from the office
• Check in at one specific area in the office so everyone in the office knows where you are at.
• Can be used as an employee ID card

How can an individual benefit from using NFC Technology?

• To make payments / to settle bills
• To share media such as videos, contacts and etc. with friends
• To get information

Advantages and Disadvantages

Advantages

• Intuitive – Interactions require no more than a simple touch
• Versatile – Ideally suited to the broadest range of industries, environments, and uses
• Open and standards-based – The underlying layers of NFC technology follow universally implemented standards
• Technology-enabling – Facilitates fast and simple setup of wireless technologies, such as Bluetooth, Wi-Fi, etc.
• Inherently secure – Transmissions are short range (from a touch to a few centimeters)
• Interoperable – Works with existing contactless card technologies
• Security-ready – Has built-in capabilities to support secure applications

Disadvantages

• Equipment Required – NFC-enabled equipment is required from NFC-enabled cards to scanners.
• Cost – Expensive technology and smaller companies may not want to risk investing in NFC because it is hard to measure the additional profit with it.
• Understanding – It (at the time of writing) is still a relatively unknown technology, even though it has been around for a long time. Many people would not know what NFC is, so wouldn’t understand how to use it.
• Technical Limitations – There is only so much NFC can do. A limit to the speed, the amount of data it can transfer etc. It will not solve all problems or give the same advantages to everyone

References

• Near Field Communication Website
• Near Field Communication Forum
• Near Field Communication Blog