NFC Technology and the Future

What is NFC Technology?

Have you ever wondered how tap services like Apple Pay, Samsung Pay, and Google Wallet work? It’s simpler than you would think. It is called contactless NFC (near field communication) technology, and inside the device, an NFC chip operates as one part of a wireless link. When two of these chips get in close proximity, small amounts of data are transferred. In the event of payment, the chip identifies a consumer by their enabled cards and devices, which then connects to bank accounts and/or credit cards. This enables a phone to in a sense act as an entire wallet.

Where is it Found?

There are other uses for contactless NFC technology, such as the Android Beam app. This allows for the transfer of photos, contacts, or directions by simply holding two phones together. In addition, passive NFC ‘tags’ are being built into posters or kiosks, which when scanned will transfer data to your phone, such as coupons, maps, or a web address. They are even being used with video game systems, such as Disney Infinity, and Nintendo’s Amiibo. Chips are placed in the collectible toys which when placed over the console ignites special features. They are even advanced enough to store user data, such as experience points.

Most phones, tablets, and/or Apple Watches purchased in 2015 or earlier come equipped with NFC chip technology, which you can start taking advantage of as a consumer. If you own a business, you can also take advantage of this technological move by installing NFC chip compatible payment processing software and hardware so that your business can accept mobile wallets as payment. Our credit card processor, PayJunction, can help you get set up. Click here for more information.

Concerns and Benefits of NFC Technology

Some may be concerned that the NFC allows for the possibility of crooks running off with your personal or payment information. However, in order to skim this data, the thief must be mere centimeters away. In addition, the NFC antennae are only activated with the screen is on and unlocked so the password protects your phone to prevent fraud. If you have a credit card with NFC capabilities, buy a sleeve to go over your card, which will easily deflect radio frequencies. The benefits outweigh the dangers so get out there and enjoy the new NFC capabilities!