Near Field Communication (NFC)

Context

The National Payments Corporation of India (NPCI) has initiated the deployment of ‘UPI Tap and Pay’ across digital payment providers.

Near Field Communication (NFC)

Near field communication (NFC) is a short-range wireless technology that enables communication between two electronic devices over a distance of 4 cm (1.57 in) or less. It’s essentially a fancy way of letting devices talk to each other when they’re close together, often by simply touching them.

Working

• NFC was first introduced in 2003.
• NFC is based on the same technology as RFID (radio-frequency identification) chips.
• NFC devices use electromagnetic induction to transfer data. This means that they create a magnetic field that can be picked up by other devices within range.
• There are two main types of NFC devices: active and passive.
  • Active devices, like smartphones, have their own power source and can both send and receive data.
  • Passive devices, like NFC tags, don’t have their own power source and can only receive data.
• When two NFC devices come close together, they create a connection. This connection allows them to exchange data, such as contact information, URLs, or even payments.

Uses

• Mobile payments: You can use your NFC-enabled phone to make contactless payments at stores and restaurants.
• Access control: You can use your phone to open doors and gates that have NFC readers.
• Data sharing: You can quickly share contact information, URLs, or other data with another NFC-enabled device.
• Pairing devices: You can easily pair your phone with Bluetooth headphones or other devices using NFC.

NFC is a secure technology, and the data exchange is encrypted.