NFC - Near Field Communications

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Near field communication, or NFC, allows for simplified transactions, data exchange, and wireless connections between two devices in proximity to each other, usually by no more than a few centimeters. It is expected to become a widely used system for making payments by smartphone in the United States. Many smartphones currently on the market already contain embedded NFC chips that can send encrypted data a short distance ("near field") to a reader located, for instance, next to a retail cash register. Shoppers who have their credit card information stored in their NFC smartphones can pay for purchases by waving their smartphones near or tapping them on the reader, rather than using the actual credit card. Co-invented by NXP Semiconductors and Sony in 2002, NFC technology is being added to a growing number of mobile handsets to enable mobile payments, as well as many other applications.

Though contactless or proximity cards are already around, their reach isn’t very vast and bringing NFC to mobiles and other similar platforms may increase usage. NFC cannot be labeled a ‘new’ technology, as Nokia has been active in this line since 2004. Along with Philips and Sony, it has founded the NFC Forum. Participation of 130 countries in this forum clearly signals that NFC is set to become a way of life in the years to come.

The essence of NFC is short-range wireless communication that is both safe and effective. The maximum distance is about 20cms, which ensures that no unauthorized communication takes place. It scores over various shortcomings of Bluetooth such as high power consumption and security concerns. This form of communications also works when one of the devices is not powered.

The Near Field Communication Forum (NFC Forum) formed in 2004 promotes sharing, pairing, and transactions between NFC devices and develops and certifies device compliance with NFC standards. A smartphone or tablet with an NFC chip could make a credit card payment or serve as keycard or ID card. NFC devices can read NFC tags on a museum or retail display to get more information or an audio or video presentation. NFC can share a contact, photo, song, application, or video or pair Bluetooth devices.

The 140 NFC Forum members include Samsung, Nokia, Huawei, HTC, Motorola, NEC, RIM, LG, Sony Ericsson, Toshiba, AT&T, Sprint, Rogers, SK, Google, Microsoft, PayPal, Visa, Mastercard, American Express, Intel, TI, Qualcomm, and NXP.

Source: Wikipedia
 
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