Near Field

Communication(NFC)
A techno-commercial appraisal

Introduction:
Near field communication, abbreviated NFC is a form of contactless communication between
devices which allows a user to wave their device over an NFC compatible device to send
information without needing to touch the devices together or go through multiple steps setting up
a connection. It is a short-range high frequency wireless communication technology which
enables exchange of data between devices over about a 10 cm distance. Be it paying in a mall
through a smartphone or simply bumping the devices together to share music or games, all is
made possible by NFC, thus letting us learn, play and pay with ease.

Historical perspective:
NFC traces its root back to radio-frequency identification (RFID). Back in 2004, three major
corporations, Philips, Sony and Nokia came together in Japan to form the NFC Forum which
developed the specifications for the NFC tags. This forum has dedicated itself to promote the
simplicity, popularity, safety and security of the technology. In addition to this it also educates
businesses about the standards that allow NFC to operate between different devices.
The timeline below shows the major milestones in the NFC development:
2007
2004

Nokia developed the

first NFC compatible
phone 6131

Formation of NFC
Forum

2006

2010

Development of
standards for NFC
tags and smart
posters

First NFC enabled

Android phone,
SamsungNexus S
launched

Timeline of NFC development

How does it work?

Near field communication is designed for use by devices within close proximity to each other.
NFC communicates either by a modulated electric field, or a modulated magnetic field. For
example, a small loop antenna (also known as a magnetic loop) produces a magnetic field, which
can then be picked up by another small loop antenna, if it is near enough.
Three forms of NFC technology exist: Type A, Type B, and FeliCa. All are similar but
communicate in slightly different ways.

NFC-A
This is similar to RFID Type A communication. In Type A communication, Miller encoding,
also known as delay encoding is used.
Amplitude Modulation: 100%
Data transmission speed: 106 Kbps

NFC-B
This is similar to RFID Type B communication and uses Manchester encoding.
Amplitude Modulation: 10%
NFC-F
NFC-F refers to a faster form of RFID transmission known as FeliCa. It is majorly used in Japan.
This is currently the most popular form of NFC due to its speed of transmissions and data
transfer. It is used for a variety of services such as subway tickets, credit card payments, and
identification at office buildings and other locations with limited access.
The devices that incorporate NFC can be of two types:

Active: These can read as well as send information. Eg smartphones

Passive: contains information which can be read by other devices but cannot read any
information on its own. Eg- NFC tag

For security purposes, the data being transferred over NFC is encrypted and transferred over a
secure channel. Use of password protection and anti-virus softwares enhance the security levels
and reduce the risk of sensitive information like credit card details in the wrong hands.

Position in Gartner Hype Cycle:

According to the 2014 hype cycle for technologies released by Gartner, the NFC technology lies
in the trough of disillusionment. This means that the current providers of NFC are continuously
improving the products and finding out new uses for it in order to garner benefits for the users
and will reach the peak of productivity within 2-5 years.

Alternatives for NFC:

1. Bluetooth
Bluetooth and near field communication have many features in common as both are short
distance wireless transmission forms. While NFC can be used upto a distance of only
10cm, Bluetooth can be used upto 30ft. However, NFC has very little power requirement
as compared to Bluetooth. Also the close proximity required in NFC helps it to overcome
the problem of interference in transmission which is faced by Bluetooth.
Bluetooth does offer a longer signal range but requires the users to manually set up the
connection whereas NFC connects automatically and much faster. However, both
technologies are working together to make the transmission of data for users hassle free.

2. QR codes:
These are like bar codes. Users scan the QR code, the smartphone interprets the barcode,
and a related website or application opens. It is similar to NFC technology in that both
are fast and require no actual contact between the smartphone and the item containing the
QR code or NFC chip. Yet NFC is more versatile while QR codes remain the same once
generated.

NFC has advantages over QR codes like its flexibility and ease of use but currently the
QR codes have a greater reach and are more popular.

Benefits of NFC
Benefits for Individuals:
The various uses of NFC offer many benefits in the day to day life of the individuals using it.
Some of them are listed below:

Information Sharing: The minute size of the NFC tags and their lack of battery allow
them to be used virtually anywhere. They are being used to deliver information in
museum displays, library books, posters etc.
Transportation: Some cities, mainly in Japan, now use a FeliCa version of the metro or
train ticket. These can be utilized by swiping the phone and it keeps a track of the number
of trips left and allows access to the subway, making it a complete paper free system.
Healthcare: NFC helps hospitals in real time tracking of patient information and doctors
notes. Each time a nurse or doctor visits the patient, they can make a note of a change in
recommendations and record which medicines were administered. This helps prevent the
wrong medications from going to the wrong patient and creates a streamlined system.
Social Networking: This is gaining popularity. The users now share their location by
swiping the phones at places they visit, exchange contact information by just tapping
their phones with their friends. This saves the hassle of logging in every time and then
updating their particulars.

Benefits for Businesses:

NFC is not just to make the lives of individuals easy but also helps businesses become more
efficient. It offers various benefits like:

Staff Communication: Using NFC, the staff can update their locations and clock in and
out from the offices. It is also being used to keep track of the task progress.
Customer service: NFC card readers placed at the checkout points in malls and shops
make the payment process hassle free and faster, making it easier for the customers. In
addition to hassle free payment, tags are also being used to convey product information
and keep a track of the coupons and loyalty points

Whether it is a large organisation with several departments or a small firm, NFC is helping to
make the functioning more efficient and beneficial for the clients and owners alike.

Security Concerns with NFC:

As is with all the data transmission services, users of NFC also have concerns related to the
security of the data being transmitted.
1. Data Theft: Password protection facility in mobile phones protects the users against the
use of their smartphones for making payments in case the phones are stolen. This is much
better than the case of credit cards where no such possibility exists.
2. Data corruption and manipulation: This threat occurs when the data being transmitted
is intercepted in between and manipulated thus rendering it useless when it reaches the
receiver. NFC uses secure channel transmission to prevent this from happening.
3. Eavesdropping: This refers to just listening the transactions or transmissions and no
interceptions. The close proximity required for NFC devices and the secure channels used
make this risk very less.

Current Trends in NFC:

Many major corporations have entered the domain and are experimenting and coming out with products
using NFC. Some examples are listed below:
1. MasterCard:
MasterCard has developed a new technology called PayPass. This uses NFC and is integrated
with Google Wallet. The user needs to save his card information in the Wallet and then just swipe
the phone to make payments using Google Wallet.
2. PayPal:
The most famous name in the world of money transactions on internet has come up with a
technology using NFC to transfer money between two users by tapping their smartphones
together. This is called Tap-To-Pay.
3. Apple Iphone 6:
The technology giant has incorporated NFC in its most recent iPhone 6. However it has restricted
the usage for making payments using Apple Pay only, but there is a possibility of seeing more
uses in the future.
4. Windows and Android phones:
The phones with Windows and Android OS have the facility of transferring media like photos,
music apart from making payments by simply tapping with other NFC enabled smartphones.

Conclusion:
With the passing years, NFC has become a major player in making the process of data transfer
more efficient, safer and faster. Be it small organisations, major firms or simple individuals, NFC
is making lives simpler for all. The trends and developments seen in the current times make the
picture only brighter in the future. This technology has paved the way for contactless
transmissions with minimal risks or security threats. NFC is making hassle free learning, paying,
sharing and playing possible for the world.