NFC technology for instant payments

Syllabus: General Studies Paper 3

Context

Near-field communication (NFC) is a wireless connectivity technology that allows NFC capable devices to converse and transmit information with a single touch. Aside just driving payment services, NFC technology offers a wide range of uses. It is utilised in contactless banking cards and to produce contactless public transportation tickets.

Background

• Near-field communication technology is based on Radio-Frequency Identification (RFID), which merchants have used for decades to tag and monitor merchandise within stores.
• Near-field communication technology gained traction in 2004 with the formation of the NFC Forum, a non-profit organisation dedicated to extending the ease of NFC technology to many parts of life.
• The Forum publicly detailed the architecture for NFC technology in 2006, and its standards continue to provide a road map for all interested parties to construct strong new consumer-driven products.

NFC is required because-

• While contactless or proximity cards are already available, their reach is limited, and adding NFC to mobiles and other comparable platforms would undoubtedly increase usage.
• The essence of NFC is safe and effective short-range wireless communication.
• The maximum distance is around 20cms, ensuring that no unlawful communication occurs.

NFC applications beyond payments

• Aside from simplifying and expediting the payment process, near-field communications offer a wide range of applications.
• Hundreds of millions of contactless cards and readers are used globally to secure networks and buildings, manage inventory and sales, prevent auto theft, keep track of library books, and operate unmanned toll booths.
• NFC is the technology underlying the cards that we wave across card readers.
• It can be found in speakers, home appliances, and other electrical items that we can monitor and manage using our smartphones.
• With a single tap, NFC can activate Wi-Fi and Bluetooth gadgets across our houses.
• NFCs Provide Both Short-Term and Long-Term Solutions
• Near-field communications is being used in a variety of sectors and has far-reaching effects.

Advantages of NFCs:

Healthcare

• Tracking Patient Vital Signs: NFC-enabled wristbands may be programmed to track patients’ vital signs. NFC-enabled gadgets might allow patients of all ages to assess their health condition independently with a simple “just touch” instruction.
• Patient Care-Management: NFC in the hospital environment allows for real-time tracking of a patient’s whereabouts, when the nurse last visited, and what therapy a doctor just delivered. NFC-enabled wristbands can replace standard hospital identification bracelets and can be updated in real time with information such as when a drug was last administered or when a treatment has to be conducted.

Airlines

• Using NFC, a 450-person plane can be boarded in 15 minutes, a task that would ordinarily take 40 minutes without the usage of NFC.

Hospitality, travel, and recreation

• A hotel may deliver access privileges to a guest’s room directly to his or her mobile device in advance of their arrival using NFC technology.

Workplaces

• NFC devices allow people to transfer documents without the need of paper.

Stores

• The technology enables consumers to get product information and specs from point-of-sale screens in real time.
• Furthermore, NFC tags distributed to regular consumers may be utilised to collect shopping data and promote purchases.

Schools

• Some higher education institutions have already introduced NFC-based identification systems, allowing students to get building access while also making payments.

Reliability on NFCs

• Because NFC near field communication does not employ physical connections, the connection is more reliable and does not suffer from the problems of contact wear, corrosion, and filth that physical connector systems do.
• NFC uses inductive coupling at a frequency of 13.56 MHz, which is a licence-free allotment in the high-frequency radio spectrum.
• NFC is a kind of RFID, but it has its own set of standards that regulate its functioning, interface, and so on. This implies that NFC equipment and pieces from many vendors can be used in conjunction. The NFC standards govern not only the contactless operation environment, but also data formats and transfer rates.

Shortcomings

• It can only work across small distances of 10-20 cm.
• It has extremely low data transfer rates.
• It is not as beneficial to users because of the extensive procedures compared to alternative simple solutions.
• While it is more secure than a credit/debit card-based system, it is not entirely risk-free. Mobile-based hacking is becoming more frequent as a result of the availability of cutting-edge tools and techniques that provide total access to smart devices.
• Power consumption is higher in NFC-enabled gadgets.
• Due to greater pricing and a lack of promotion from leading handset providers, NFC-enabled handsets are not yet mainstream.
• While NFC may be safe in and of itself, cloud servers may be vulnerable to hacker assault.
• Can be a favoured weapon for terrorists who may go from social networking sites to putting up NFC recruitment posters.

The Hindu link

https://www.thehindu.com/sci-tech/technology/nfc-technology-for-instant-payments/article65286681.ece#:~:text=What%20is%20NFC%20and%20how,coupons%2C%20or%20share%20a%20document.

Question- Describe the technology behind Near-field communication (NFC) and its applications.