What is Near Field Communications?

Near Field Communication (NFC) is a method of transferring data between two electronic devices that are in close proximity to each other. Smart phones, computers, credit card machines and other data reading devices are able to pass information between themselves when they are in close contact (10 cm or less) with one another. The transfer of data is a result of magnetic inductive coupling.  This technology is simple for manufacturers to introduce to their technologies which may make it more attractive than more difficult or expensive options.

NFC can not only transfer information but can save time, money and resources. When data is passed from one device from another there is no need for paper tickets or receipts to be exchanged. This saves the effort of generating the paper tickets or receipts. It saves money on the purchase of paper and ink and it makes for ‘greener’ business practice. The less waste that is generated by a transaction the more resources can be protected.

Security is improved with the use of Near Field Communication. Consumers worry about security when making payments whether in person or online. Security features are as important as the products that are being purchased. When making an acquisition in person a customer would be required to present a credit or debit card and show proper ID in order to complete the transaction. When carrying out a transaction online a shopper would seek out a secure site. When finishing the sale they would provide an expiration date, security code and even a zip code verification to insure that the card is actually in the hand of the buyer. NFC technology would have the credit card statistics securely embedded in a smart phone. The card would not actually change hands and no paper trail is left behind. In theory it is possible for wireless devices to be maliciously hacked and information to be exchanged. Near Field Communication devices have the ability to protect the data and make it unusable to complete additional transactions without a PIN code or a CVC3 code for authorization. Because the card itself is never transferred from the owners hand the opportunities for fraud are diminished.

The lack of investment required to implement Near Field Communication technology coupled with the security features available make it a potentially popular choice. The benefits will become even more apparent as the process is used and refined. Consumers with busy lives are always looking for ways to simplify and this technology may offer that option.