Instant Payments Using NFC Technology

What is Near Field Communication(NFC) Technology?

NFC is a short-range wireless connectivity technology that allows NFC-enabled devices to communicate with each other and transfer information quickly and easily with a single touch whether to pay bills, exchange business cards, download coupons or share a document.

NFC is a key component of mobile payment gateway integration systems, but it can also be used to connect mobile devices to other devices, including TVs and speakers. The technology has been around since the mid-1990s but only recently became commercially viable on smartphones due to advances in semiconductor technology which enabled the creation of small, low-power chipsets.

NFC stands for Near Field Communication and is a technology that allows mobile devices to communicate with each other by bringing them within 4cm (1.6in) of one another.

NFC is most commonly used in mobile payments and mobile ticketing applications. It also enables consumers to make quick settings changes on their phones such as changing the volume or turning on/off Wi-Fi.

NFC is based on RFID technology but uses radio waves instead of magnetic fields. This allows NFC devices to communicate at distances up to 10cm (3.9in).

How does NFC work?

NFC is a technology that allows two devices to communicate with each other when they are brought within close proximity of each other. This form of contactless communication is used for mobile payments, for sharing digital information between phones and for pairing up with Bluetooth devices.

NFC transmits data through electromagnetic radio fields to enable communication between two devices. Both devices must contain NFC chips as transactions take place within a very short distance. NFC-enabled devices must be either physically touching or within a few centimetres from each other for data transfer to occur.

NFC is not the same as Bluetooth or Wi-Fi, but it can be used to connect to these wireless technologies and interact with them. For example, you can use your phone’s NFC chip in order to pair up with a Bluetooth speaker or connect with a Wi-Fi network without having to enter any passwords or codes manually.

How safe is NFC Technology?

Firstly, NFC pay technology is designed for an operation between devices within a few centimetres from each other. This makes it difficult for attackers to record the communication between the devices, compared to other wireless technologies which have a working distance of several metres.

Secondly, the user of the NFC-enabled device determines by the touch gesture which entity the NFC communication should take place with, making it more difficult for the attacker to get connected.

Thirdly, NFC tags are often passive devices that provide no output capabilities (except if they are used in combination with an RFID reader). Therefore it is impossible to determine whether an NFC tag has been used for a transaction or not. In contrast to RFID tags where every read event can be detected by an RFID reader and thus can be used as an indicator for previous read events by attackers.