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NFC, HUH?
Imagine if your smartphone coulddo everything from make con-tactless payments with a tap of your phone to become your hotelor house key. Away with all yourCVS, Giant, Safeway, and Staplesloyalty cardslet your smart-phone take their place. Does itseem like something from a Hol-lywood movie? Well, reality saysotherwise. A not-so new technol-ogy, near field communication,is on its way to simplifying ourlives even more.NFC is a
short-range wireless connectivity technology
thatbuilds upon Radio FrequencyIdentification technology.What exactly is RFID?
•
It is capable of acceptingand transmitting infor-mation beyond just a fewmeters; it is less restric-tive than NFC
•
It uses radio frequencywaves that act as pas-sive, active, or a combi-nation of both
•
It does not need adirect line of sight toread informationSony and Philips first developedNFC in 2002. As an extension of RFID, NFC is completely compat-ible with existing structures, tags,and contactless smart cards.It does, however, dramaticallydiffer from its pre-decessor. NFC operates at highfrequencies (13.56 MHz) to allowthe exchange of data betweenenabled devices. Communicationbegins when two enabled devicesare in extremely close proximityto each other (4 - 10cm) or if twoenabled devices physically touchone another. In essence, thistechnology brings connectivityto the physical world.The
Near Field Communica-tion Forum
was created in2004 and seeks to advanceNFC technology by develop-ing specifications, educatingthe market about NFC, andensuring interoperability amongservices and devices. Theforum’s 140 members consistof application developers, fi-nancial services institutions,manufacturers, and more.
NFC PREDICTIONS
NFC-enabled mobile devicesstand to benefit most from thetype of technology NFC provides.Factors such as chip, handset, andtag manufacturers have slowedits adoption to this point, butAndroid devices that contain NFC
NFC: NEAR-FIELD COMMUNICATIONS
ALookIntothe(Near)FutureofNFC
 
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chips are already on the marketand the iPhone 5 is expected tohave built-in NFC capabilities aswell. In comparison to countries abroad,very few devices equipped withNFC exist in the U.S.; these fewinclude Nokia, Samsung, LG, andMotorola devices. According tothe
latest research by Merca-tor Advisory Group
, 116 millionsmartphones equipped with NFCwill ship this year.  Between 2012and 2015, the shipment numbershould rise to 510 million.
IN A NUTSHELL:HOW NFC WORKS
NFC is often called an “applicationenabler.” It opens various roads of communication and transactionsin a quick, user-friendly way. Thisnot only makes electronic servicesor other interactions accessibleto more people, but it also tran-scends age and technical ability.So how does it work? Think of NFCperforming a handshake betweentwo devices that are close togeth-er. The device that first extendsor initiates the handshake is the“initiator” and tries to establisha connection. Once connected,the two devices exchange datathrough NFC directly or throughother wireless technologies suchas Bluetooth and WiFi.Let’s take this a step further andlook at the roles the two devicesplay. The initiator is the activedevice, which contains powersources and is usually a mobiledevice that contains an NFC read-er/writer. The target is the passivedevice, which does not have anyavailable power sources. The pas-sive device contains an NFC tag,which is basically a printed circuitintegrating stored data and anantenna which can be read by anNFC-enabled device.The NFC Forum developed
three modes of operation
that willallow for the integration of thetechnology into our daily lives.NFC devices can easily switchfrom one mode of operation toanother. These modes are:
1.
Reader/Writer Mode 
The Reader/Writer Mode is usu-ally for the exchange of contentinformation. For instance, if youcome across a movie poster withan NFC tag, you can downloadany available data (such as amovie trailer, a discount coupon,or reviews) by reading the tagwith your NFC-enabled device.Another great example is a self-guided museum tour with NFCtags placed throughout an exhibit. 
2.
Card Emulation Mode 
The Card Emulation Mode in-volves the NFC device acting as aNFC tag, similar to the traditionalcontactless smart card. When youmake a payment, for example,you touch your device to a NFCreader, which receives or readsthe necessary data.
3.
Peer-to-Peer Mode 
The P2P Mode is when two de-vices exchange data. Supposebusiness owners John and Janemeet for the first time at a mobilestrategy conference and theywant to keep in touch. With NFCthere’s no need to carry aroundand exchange business cards;instead, it would only take a tapof their phones to trade theircontact information.
NFCUSES/SCENARIOS
NFC-like technology is not a newcommodity. Think about the IDbadges or key fobs that opendoors. Remember when Master-Card (PayPass) and ExxonMobil(Speedpass) implemented their“pay on the go” mini kiosks? Theseare very common examples, butthere are countless more whichbreed convenience, synchroniza-tion, productivity, communica-tion, and the rapid exchange of informationall in real-time.
116 MILLIONSMARTPHONESEQUIPPEDWITH NFC WILLBE SHIPPEDTHIS YEAR.
 
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Below are just a few scenarios thatillustrate the limitless possibilitiesoffered by NFC.
1.
Contactless Payments 
The most common example iscontactless payments: using amobile device as a digital wal-let. Say you’re on the way tothe office, but you want to stopfor your morning cup of coffee.With just a swipe or tap of yourmobile device, you can be in andout quickly, eliminating the needto carry cash or your credit card.In terms of contactless payments,NFC technology can also includethe extension of redeemablecoupons, promotions, and theuse of loyalty cards. At the timeof purchase, customers can swipemobile phones to unlock a varietyof discounts.
2.
The Sharing of Content 
We do everything with our mobiledevicestake pictures, recordvideos, take notes, read, write/ edit documents, build contacts,download/listen to music…allof which we love to share.  NFCtechnology promotes quick andeasy sharing between two mobiledevices, as well as with otherconsumer electronics such ascameras, TVs, and printers. Mostimpressively, trading informa-tion only requires a quick touchbetween devices. In the office,you can streamline business andrevolutionize the way you swapbusiness cards, spreadsheets, anddocuments.Pairing NFC and consumerelectronics works similarly butdepends on the overall size of thetransfer data. For instance, datathat is reasonably small (up to akilobyte) may solely use NFC totransmit the data, but other situa-tions may call for NFC to establishanother wireless connectionmethod (such as Bluetooth orWiFi) to carry the information forsharing.Suppose you have photos onyour mobile device or digitalcamera that you want to print. Inthat case, you’ll touch your deviceagainst the NFC-enabled printer.Because of the size of the files,you’ll connect via Bluetooth totransmit the digital photos fromthe device to the printer.
3.
Ticketing & Transportation 
The transportation industry isone of the industries set to reapthe benefits of using NFC. Ac-cording to the
American Public Transportation Association
,nearly 14 million people dependon buses, trains, light rails, sub-ways, cabs, and trolleys each day.That’s a substantial number of fare transactions, not to mentionriders looking for information ontransit schedules.Most public transportation re-quires fare, which comes in theform of a paper ticket, plastic/ metal token, or an electroniccard. The use of NFC technologyremoves the burden of carryingcash, loose coins, and/or creditcards. Commuters will profit frombeing able to monitor real-timetransit information and schedulesvia signs that are embedded withNFC-readable information.
ENTERPRISE ADVANTAGES &BENEFITS OFFERED BY NFC
NFC presents numerous benefitsto both mobile users and busi-nesses. In general, it is a versatiletechnology that can find a nichein virtually every industry or situ-ation. Convenience and simplicityof use are obvious advantages.The compatibility between NFCand existing RFID structures, tags,and contactless smart cards isanother plus because it elimi-nates the need to create and/ordevelop an entirely new system.Given the wide range of pos-sibilities for developers and thenumber of devices that will sooncome pre-equipped with NFCchips, it has become a very at-tractive technology. Market andconsumer outreach efforts, as
In essence, thistechnology brings connec-tivity to thephysical world.
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