Near field communication technology was invented by Sony and NXP Semiconductors in the year 2002 and is increasingly being added to smartphones to enable mobile payments and other applications. NFC standards cover communications protocols and data exchange formats, and are based on existing radio-frequency identification(RFID) standards including ISO/IEC 14443 and FeliCa. The standards include ISO/IEC 18092 and those defined by the NFC Forum, which was founded in 2004 by Nokia, Philips and Sony, and now has more than 160 members. The Forum also promotes NFC and certifies device compliance. It fits the criteria for being considered a personal area network, since it utilizes bluetooth technology and can be used to communicate between devices. Near field communication (NFC) is a set of standards for smartphones and similar devices to establish radio communication with each other by touching them together or bringing them into close proximity, usually no more than a few centimeters. Present and anticipated applications include contactless transactions, data exchange, and simplified setup of more complex communications such as Wi-Fi.Communication is also possible between an NFC device and an unpowered NFC chip, called a "tag".
NFC always involves an initiator and a target; the initiator actively generates an RF field that can power a passive target. This enables NFC targets to take very simple form factors such as tags, stickers, key fobs, or cards that do not require batteries. NFC peer-to-peer communication is possible, provided both devices are powered. A patent licensing program for NFC is currently under development by Via Licensing Corporation, an independent subsidiary of Dolby Laboratories.
NFC tags contain data and are typically read-only, but may be rewriteable. They can be custom-encoded by their manufacturers or use the specifications provided by the NFC Forum, an industry association charged with promoting the technology and setting key standards. The tags can securely store personal data such as debit and credit card information, loyalty program data, PINs and networking contacts, among other information.
What's the difference between RFID and NFC?
When acronyms attack, people get confused. That's especially true when two acronyms stand for a couple of very similar wireless technologies. In this case, our geeky acronyms are NFC and RFID, two close cousins in a world filled with wireless wizardry. NFC stands for near field communication, while RFID means radio frequency identification. Both employ radio signals for all sorts of tagging and tracking purposes, sometimes replacing bar codes. NFC is still an emerging technology; RFID, however, is currently in widespread use all over the world.
RFID tags contain an antenna and a memory chip that stores data. To see that data, you need an RFID reader. These tags and readers are used in a mind-blowing array of applications. NFC technology is a newer, more finely honed version of RFID. It operates at a maximum range of about 4 inches (10 centimeters) and can be set up for one- or two-way communications.
In one tap, you'll pay for your groceries, redeem electronic coupons and collect loyalty points. It's called contactless payment. Your phone, in other words, replaces all of those credit, loyalty and gift cards, making payment and rewards redemption much quicker and more convenient.
RFID knows its role. It's mainly a critical tracking and inventory control technology. But RFID's little cousin NFC is still evolving. It'll be years before NFC grows fully into its skin, and when it does, it will likely be as ubiquitous and useful as its RFID kin.