An NFC tag can be programmed with a wide range of information and easily embedded into different products. That’s why there’s no surprise that, with over 80% of smartphones now equipped with NFC, companies are exploring new ways to incorporate NFC technology into their customer experiences.
Not too long ago, the concept of paying for groceries with a simple tap of one electronic device to another would have sounded like a science fiction movie. Thanks to near-field communication (NFC) technology and the accompanying smart tags that make it an actual reality.
An NFC tag and its reader can establish wireless communication. Typically, the tag contains a certain amount of data, which the tag can transmit to the reader through electromagnetic pulses. These pulses represent 1s and 0s, enabling the reader to interpret the information stored on the tag.
An NFC tag is also a more secure alternative for a QR code in short-range applications, such as Apple Pay. Ultimately, the technology involves electronic reader devices that can retrieve data from NFC tags. That’s why NFC is called the ultimate connectivity tool — it enhances the capabilities of various devices, including smartphones, tablets, and payment cards.
In this blog post, we’ll explain how you can use an NFC tag in various scenarios, including for identity verification.
What Does an NFC Tag Do?
An NFC tag is a small electronic device that stores data and can wirelessly transmit that data to other NFC-enabled devices, typically through a simple touch or close proximity. These tags are used for different purposes, such as information sharing, identity verification, contactless payments, and task automation, making them versatile tools for providing users with convenience.
NFC tags also go by various names, including smart tags or info tags. However, their fundamental structure closely resembles RFID tags. Both types contain storage memory, along with a radio chip connected to an antenna.
What is RFID?
RFID technology, which stands for Radio-Frequency Identification, is a system that uses radio waves to identify, track, and manage various objects, people, or animals remotely. It has proven to be a successful anti-theft measure for tracking inventory across different industries, including manufacturing, healthcare, automotive, and apparel.
RFID systems consist of RFID tags (also known as RFID transponders) and RFID readers. Companies use them wherever there’s a requirement to monitor and manage items effectively.
Here’s how RFID works:
- RFID tag. It’s a small electronic device that contains a unique identifier and can store data. RFID tags come in various forms, including labels, cards, or even implanted chips. They can be passive (powered by the RFID reader’s radio waves) or active (with their own power source, like a battery).
- RFID reader. It’s a device that uses radio-frequency signals to communicate with another RFID tag. Readers send out radio waves, and when an RFID tag enters the reader’s range, it receives the signal, powers up, and sends its stored data back to the reader.
- Software. The data from the RFID readers is typically sent to a database or software system for processing and management. This helps companies to track and manage the tagged items, people, or animals efficiently.
What is Near-Field Communication (NFC)?
Near-Field Communication, or NFC, can be thought of as a blend of RFID and Bluetooth. Unlike RFID, NFC tags operate at a very close range, offering users greater precision. Additionally, NFC eliminates the need for manual device discovery and synchronization, a requirement in Bluetooth Low Energy (BLE) connections.
NFC-enabled devices have two categories, which include:
- Passive NFC devices. These are typically compact transmitters that don’t require a power source. They can send data to other NFC-enabled devices but lack the capability to process incoming data. For example, advertisements.
- Active NFC devices. These devices have the ability to both send and receive data. The most common example is a smartphone. Mobile wallets such as Apple Pay or Android Pay and similar contactless payment solutions also operate using NFC as their main technology.
What’s the Difference Between NFC and RFID?
The difference between NFC and RFID lies in their communication methods. While NFC connectivity may appear similar to Bluetooth and Wi-Fi connections, the key distinction lies in how they transmit data. NFC relies on electromagnetic radio fields, whereas Bluetooth and Wi-Fi primarily use radio transmissions for communication.
Another difference is in how NFC tags are designed specifically for NFC systems. Their nature allows them to incorporate into a wide range of products easily. For example, items like the mentioned advertisements, stickers, ski lift passes, prescription bottles, and so on.
NFC-enabled smartphones can also act as an NFC tag. Different from RFID, which supports only one-way communication, NFC enables two-way data transfer. This means that a smartphone can emulate an embedded NFC tag, similar to the ones used for contactless payments.
