UNDERSTANDING NEAR FIELD COMMUNICATION IN SMARTPHONES

Near Field Communication (NFC) technology is promising
because it presents the next evolution of convenient payment with an added
layer of security. Some credit cards have NFC chips embedded in them and can be
tapped against NFC payment terminals instead of swiped, which eliminates the
possibility that someone could skim your data via the magnetic strip. This same
system works with cellular phones, too: read up on how cellular electronic payments work to dig into the technology.

 

Google
is one company pushing NFC payments with Google
Wallet. The application stores credit card information under
multiple layers of security and allows for quick tap payments at NFC terminals.
That means the technology's usefulness is limited by the number of NFC payment
terminals available in retail locations and the number of phones that support
the technology -- at launch, meanwhile Google Wallet only works with the Android Nexus S
smart phone.

WHAT EXACTLY IS NFC

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 centimetres.
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".

How NFC Works

Bluetooth and Wi-Fi seem similar to near field
communication on the surface. All three allow wireless communication and data
exchange between digital devices like smartphones. Yet near field communication
utilizes electromagnetic radio fields while technologies such as Bluetooth and
Wi-Fi focus on radio transmissions instead.

Devices using NFC
may be active or passive. A passive device, such as an NFC tag, contains
information that other devices can read but does not read any information
itself. Think of a passive device as a sign on a wall. Others can read the
information, but the sign itself does nothing except transmit the info to
authorized devices.

Active devices can
read information and send it. An active NFC device, like a smartphone, would
not only be able to collect information from NFC tags, but it would also be
able to exchange information with other compatible phones or devices and could
even alter the information on the NFC tag if authorized to make such changes.

USEFULNESS
OF NFC

A lot of the press you see about NFC tags will be
about mobile payments. It's the same technology but whereas we are talking here
about using NFC to transfer a web address or simple data, NFC payments are a
lot more complicated and involve a Google
Wallet on your phone and all sorts of other things. While the
momentum behind NFC is likely to be driven by mobile payments, the technology
is capable of much more.

NFC devices can be
used in contactless
payment systems, similar to those
currently used in credit cards and electronic ticket smartcards, and allow mobile payment to replace or supplement these systems. For example,
Google Wallet allows consumers to store credit card and store loyalty card
information in a virtual wallet and then use an NFC-enabled device at terminals
that also accept MasterCard PayPass transactions. Germany, Austria, Finland, New Zealand, and Italy have trialed NFC ticketing systems
for public transport, while China has brought it
into service on buses across the country. India is
implementing NFC based transactions in box offices for ticketing purposes. At
present, the possibility of the technology being implemented in Nigeria cannot
be ascertain due to the fact that the number of people carrying NFC enabled
device are quite few.

Follow this link to see
a list of NFC phones that you can buy today.