how does near field communication technology work 
nfc technology works by combining four key elements an nfc microchip within a device which acts as an antenna and receiver a reader writer that scans and allows nfc devices to access data an nfc software application on the device that can use data received by the nfc chip and an information or communications service provider isp that manages all device communications that occur through the isp nfc is an extension of rfid technology which relies on radio waves to track goods supplies and merchandise nfc replaces rfid chips with microchips that have the ability to store and encrypt information while rfid devices are passive and so lack the ability to access information nfc enabled devices do for example you can pay for purchases using nfc enabled debit and credit cards when you tap your card on an nfc compliant payment terminal data is transmitted between your card and the payment processing system to complete the transaction an nfc enabled device can operate under three different modes reader writer mode peer to peer mode and card emulation mode a reader writer is an nfc enabled device that manages and coordinates information sent between and received by two or more nfc devices and a handful of other devices that do not yet feature nfc technology examples of reader writers include point of sale pos systems cell phones tablets and rfid enabled cards in reader writer mode nfc enabled devices communicate and exchange data based on instructions from the reader writer this p2p mode enables two nfc enabled devices to exchange information directly for example a peer to peer device may exchange data with an rfid enabled device or some other type of nfc device without the assistance of a reader writer in this mode an nfc enabled device functions as an nfc payment card or virtual credit debit card when an nfc enabled device is activated in this mode it emulates a payment card or other physical card in card readers magnetic stripe readers and contactless card readers used to make payments directly from your mobile device history of nfcperhaps near field communication is best known as the technology that lets consumers pay retailers and each other with their cell phones nfc drives payment services like google wallet goog and apple pay aapl for example although nfc is not currently present in the amazon echo amzn this is a good example of where near field communications could be useful take wanting to tap to pay for a pizza or anything that you just ordered through the echo for example near field communication technology is rooted in radio frequency identification rfid which has been used for decades by retailers to tag and track products within stores near field communication technology began to gain steam in 2004 when nokia nok philips phg and sony sne banded together to form the nfc forum a nonprofit organization that s committed to bringing the convenience of nfc technology to all aspects of life in 2006 the forum formally outlined the architecture for nfc technology whose specifications continue to provide a road map for all interested parties to create powerful new consumer driven products nokia released the first nfc enabled phone in 2007 and by 2010 the telecommunications sector had launched more than 100 nfc pilot projects in 2017 new york city s metropolitan transit authority mta phased in a system that enables riders to pay their subway fares with nfc technology and the rest as they say is history benefits of nfcthere are several benefits of deploying nfc technology these include nfc enabled devices can replace any card or cash that can make a transaction because nfc enabled devices can store multiple credit cards for example you do not need to carry all of them in your purse or wallet instead you can pay for purchases by accessing your virtual wallet on your nfc enabled device nfc uses 128 bit or higher encryption to guarantee security and privacy of transactions because nfc uses tokenization instead of storing credit card information for example no retailer can see your credit card number sharing content goods and money with friends and family is easier when you grant them access to your nfc enabled device for example if you send a file to an nfc enabled device with peer to peer sharing enabled the file will be sent immediately nfc technology can be used by advertisers to deliver targeted ads to consumers nfc enabled devices when consumers tap an ad displayed on a device an advertisement can be customized to that person s interests location or other personal information nfc drawbacks and security risksalthough nfc technology offers many advantages it also has some drawbacks and potential risks these incliude because nfc enabled devices rely on battery power they must be charged periodically this could result in users forgetting to charge their devices before placing or receiving payment for a purchase and if a device runs out of power during a transaction the transaction may be interrupted or the transaction may be incomplete or unsuccessful 