The Ins and Outs of NFC?

Thanks to the introduction of the IPhone 5, New Field Technology is getting a lot of attention. Two other new phones, Google Nexus S and Rumour have also added this capability. It is estimated that by the end of 2014, one in five smart phones will have the NFC capability, but what does this mean for the average consumer?

Many believe that NFC is new technology, but it has been around for many years. NFC used radio-frequency identification is also known as RID. London has been using this technology for many years with their Oyster cards. The Oyster card gives riders the ability to pay for their trip, by simply tapping the card. With NFC using the radio frequency, the funds are deducted from their account.

There are three basic types of NFC technology that is being used, they are: "sharing", "pairing" and "transactions". The one that most people will come in contact with is sharing. Sharing is the connection between two devices. It allows the cell phone to communicate with the reader, which deducts the funds.

The technology started a few years ago with the “Pay Pass” system. Shoppers could just tap their card in front of the reader, and the funds were deducted. Instead of the old school form of scanning the card, the RFID technology allowed the two machines to communicate in a different way.

Most people have a cell phone. If the electronic wallet is implemented, would there be a need for a traditional wallet, with credit cards? While most embrace this concept fully, there are still many who have their doubts. The fact that anyone with a reader can walk around and immediately get information from cell phones is a potential risk. Setting up a pin number does offer some protection; however, there is no full proof system with anything technological. A devise is only as dependable as the security that is protecting it. Dishonest people make it a full time job to find a way to interact and withdraw from the latest technological advances.

Analysts believe the using the smart phone to pay for the transaction is generally safer than using a credit card. Merchants believe that the credit card fraud will decrease. Analysts have said the electronic wallet will be safer for everyone involved. Google, Samsung, Barclay's and Visa have all come out as supporters of the new NFC payment system. With such prominent names standing behind the promotion of an electronic wallet, it is safe to say that it will soon be something within most people’s comprehension.

More Information

Near Field Communications

Is Near Field Communications Safe for the Customer?

When dealing with near field communication, can we embrace the new technology without security worries by simply taking security measures for malware and viruses.

Mobile Marketing Agencies

Is a Mobile Marketing Agency a Wise Investment?

Companies want to get in on mobile marketing. With the mobile market exploding, it's best to have someone experienced launching the program and monitoring it.

Internet Mobile Marketing

Dig Deeper Into Internet Mobile Marketing

Getting in on the Internet mobile marketing success can be an exciting journey. Why should business owners invest in the viral advertising? What are the benefits?