Table of Contents
Near-field communication definition is explained as the modern wireless technology that is used to make your mobiles, laptops, debit/credit cards, and other latest tools smarter and better. As the name implies, this technology facilitates a smoother and faster transfer of information.
It enables people to share information in a single touch. You could make the payments, access coupons and vouchers, exchange business cards, and perform other such operations in a fast and efficient manner.
The information between these devices is transferred through electromagnetic radio fields. Each device must contain the NFC chip. Make sure that near-field communication works only when the devices are placed close to each other. These electromagnetic signals transmit only when the devices are a few centimeters away from each other.
One of the main advantages of Near-field communication technology is the lower risk of error. Since the device reads and processes the transmitted data almost instantly, there is a very low chance it will cause human error. Needless to say, you don’t have to worry about buying a product accidentally due to the pocket-dial. Similarly, the transaction does not take place when you are walking past the person who’s carrying the device that features an NFC chip.
For the transaction to occur, you need to send the information manually. While NFC technology is getting quite popular recently, it might take time for retailers to embrace these devices. Even when technology gets universally popular, you are going to need to have a backup payment method.
Talk to our investment specialist
NFC is often seen as the technology that enables users to make and receive payments through their smartphones. For example, they could purchase products at the supermarket and pay retailers through their mobiles or tablets. The technology isn’t new. In fact, it dates back to 2004 when many popular brands collaborated to develop the near-field communication forum. This forum was designed to make payments and communication convenient through NFC. These brands were Sony, Philips, and Nokia. Nokia was the first company to launch devices that support near-field communication transactions in 2007.
Three years later, over 100 pilot projects for NFC devices were released. Recently, MTA (Metropolitan Transit Authority) has developed a system that allows the passengers to pay the metro fair through near-field communication devices. This evolving technology has a broad Range of uses (other than payments and transactions). Nowadays, many people have invested in contactless cards to process payments in a secure way. This technology can be used to monitor the buildings, run toll booths, and avoid auto-theft.
Besides that, NFC is found in all our smart electrical and home appliances that we control using our smartphones. In fact, it is because of this near-field communication technology that we are able to operate our household appliances with our mobiles. In the healthcare Industry, NFC is used for monitoring the patients’ details and stats. It makes it easier for hospitals to monitor the records of a patient. It is also used in the airlines, travel, leisure, and hospitality industries.