Near Field Communications (NFC) – The Next Step After RFID

by Neil Jones on 2011-01-31

Near Field Communications (NFC) – The Next Step After RFID

Till very recently, RFID was touted as the technology of the future that was here to stay as it transformed the way businesses were conducted. But innovations and newer offshoots from the same technology have led to better tools of communication. NFC or Near Field Communications, is one such short range wireless connectivity technology that simplifies exchange of data between devices  over 4 inches apart. The technology is not new, but has been built on the RFID platform, one up on the Bluetooth and PAN or Personal Area Network. It was registered with the ISO way back in 2003, with trials for its adoption in various fields being carried out till today.

NFC has emerged due to some limitations of RFID technology, which have made it the least used in the auto-ID sector, its inability to offer unparalleled tracking facilities and hence its limited use. RFID is now being used more as barcode reader technology substitute and little else. But RFID is a B2B technology while NFC is a B2C one, the former having faced limited success, while the latter seems set to capture a larger chunk of applications. NFC is a cost effective technology that reduces costs and is being increasingly adopted, and is now being incorporated into Nokia mobile phones as well. Nokia is using NFC across its entire range to make mobile phones the device for contactless payments, oyster card use and mobile ticketing. Similarly Apple has patented an application of mobile NFC ticketing which will enable users to buy tickets at kiosks etc without contact. The London Transport system has initiated trials to use NFC as the technology for its Oyster card. All these initiatives reveal the potential of NFC in becoming a standard technology for the average consumer. With the phenomenal size of the consumer base, NFC will get used in much higher volumes than other technologies, even RFID.

NFC is slated to become the mass market interface. It will help in creating links for wireless computers and contactless smart cards with the Internet. It holds promise in fields as diverse as financial transactions and individual target marketing.

NFC and its uses for Businesses

Though NFC is being promoted as a technology for the consumer, it holds promise in the business sphere as well, facilitating many processes and applications. RFID has been used extensively in identification and security applications and NFC will take these further since it is able to simplify users’ ability to get information and can become a communication aid for the masses while remaining invisible and location specific. NFC can also be used for price sensitive applications through mobile phones, like checking arrival times of staff in work places, duration of stay and other similar checks.

Critics point out that NFC may bring up issues of privacy and infringement of freedom and so on. But rules of corporate governance require keeping tabs of staff reporting to managers and this may be the best way to do so. Checks, eventually will help in increasing efficiency at the work place, since accountability plays a key role in the work place.

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