The Bright Future of NFC

nfc-rfid-blogMobile payments have already become a reality with the coming of Google Wallet service, followed by Isis, a conglomerate of AT&T, T-Mobile, and Verizon Wireless. The real story, though, is the enabling technology behind tap-and-go payments, called Near Field Communication (NFC).

NFC can do much more things besides simply buying goods. It uses circuitry to transmit and receive data within a close proximity, and it’s compatible with the widely deployed RFID tags. What makes NFC really exciting is its potential.

Why NFC is Important

The increasing use of RFID technology lays a foundation for the coming of NFC. Besides, the widely adoption of NFC in smartphones also plays an important part. A huge number of 40 million NFC chipsets entered the market in 2011, as was said by Nick Holland of the Yankee Group. “While the vast majority of these chips went into handsets, we expect NFC to quickly cascade into other devices in the future.”

Despite some security concerns, NFC may catch on quickly out of convenience. For example, the NFC Forum and Bluetooth SIG have published a developer’s guide to using NFC for quickly pairing Bluetooth devices, so NFC will work with other popular technologies.

How It Will Change Your Life

The NFC Forum found an infinite number of NFC use cases, including using your phone as your airplane ticket, exchanging business cards, opening car doors, and scanning info on posters. In the future you might also use NFC to log into your PC securely.

Outlook

NFC seems to have a bright future, but at the moment the cost of NFC chips prevents the technology from developing further. “By 2014, we expect the number of NFC-enabled handsets (in use) to be 20 to 30 percent. The costs are going to come down rapidly, at which point you’re going to see developers really experiment with it.”