Near-field communication (NFC) is a short-range wireless technology that makes your smartphone, tablet, wearables, payment cards, and other devices even smarter. Near-field communication is the ultimate in connectivity. With NFC, you can transfer information between devices quickly and easily with a single touch—whether paying bills, exchanging business cards, downloading coupons, or sharing a research paper. [1]

Figure 1. Benefits of Near-Field Communication (NFC)

Figure 1 shows like other wireless signals Bluetooth and WiFi, NFC works on the principle of sending information over radio waves. Near Field Communication is another standard for wireless data transition which means devices must adhere to certain specifications in order to communicate with each other properly. The technology used in NFC is based on older technology which is the RFID (Radio-frequency identification) that used electromagnetic induction in order to transmit information. [2]

Benefits of Near-Field Communication (NFC)

1- Convenience and ease of use

Consumer expectations for convenience are always on the rise. In almost any situation consumers will typically flock to the fastest, easiest and most convenient option. Near field communications make payment transactions easy, as consumers often only need to hold up their phones or their NFC cards to make a payment. Unlike EMV transactions where consumers had to learn to dip, and wait, NFC-enabled smartphone payments are typically simple and intuitive.

2 - Improved operational efficiency

Near field communication allows for faster transactions which cuts down on the amount of time customers have to wait in line as well as time spent at the register. NFC helps speed up checkout lines, increasing customer satisfaction with your business. Near field communication means less time per transaction. That represents a critical operational efficiency for businesses that turn a high volume of transactions at checkout. Happier customers and more efficient operations are measured in the bottom lines of businesses everywhere.

3- Ease of implementation

Near field communication technology is easy to implement. You’ll need NFC-enabled payment terminals, like credit card terminals or integrated point of sale systems. Fortunately, most new payment acceptance equipment sold today or in the recent past already contains near field communication technology built in. Setup is simple and quick.

4- Enhanced security

If you’re wondering about the security of near field communications, that’s understandable. Maintaining the trust of your customers depends on providing safe transmission for their payments and any data related to payment transactions. The security of near field communication technology starts with “near”—NFC signals only transmit data centimeters from the NFC device, like a payment terminal. [3]

References:

1. https://www.investopedia.com/terms/n/near-field-communication-nfc.asp
2. https://www.geeksforgeeks.org/near-field-communication-nfc/
3. https://www.fisglobal.com/en/insights/merchant-solutions-worldpay/article/top-4-benefits-of-near-field-communication-nfc-technology

Cite this article:

Thanusri swetha J (2021), Benefits of Near-Field Communication (NFC), AnaTechmaz, pp. 39