The Power of NFC Technology in the ID Verification Market
As criminals become more tech-savvy with each passing day, managing fraud risk without compromising customer experience has become utterly important. In today’s digital-first world, most mobile devices are NFC-enabled by default. In fact, your cellphone is probably activated for NFC right now. No need to worry — NFC technology requires negligible power to function on top of providing numerous other benefits.
Although it is used increasingly worldwide, very few understand the actual potential of NFC technology and how it works.
So, What Is NFC Technology?
NFC — abbreviated for Near Field Communication — is an innovation that enables a wireless and secure exchange of data between two compatible electronic devices when brought into close proximity to one another.
NFC technology emerged back in 2000 as a further development to the already existing Radio Frequency Identification (RFID) technology that allowed users to transmit data through radio waves. What gives it an edge, however, is its ability to enhance security during the interaction by limiting the distance of the frequency field to merely 4 inches.
This means, that once two compatible NFC-enabled devices are brought close enough, information can be shared between them not by entering any code, but simply through a tap. Examples of such devices include smartphones, credit cards, tablets, wearables, and related gadgets, all of which come with in-built NFC tags.
NFC Technology Breaking New Grounds
Due to accelerating digitization, an increasing number of individuals are abandoning plastic cards as a preferred way of making payments. Instead, they are opting for smartphone-enabled payments. As this opportunity is also offered by NFC, it is no surprise that the global market for NFC technology is expected to rise to USD 34.9 billion by 2025, up from USD 18 billion in 2020.
The key drivers behind the growth of this technology are the increasing trend of m-commerce, the adoption of wearables such as fitness trackers, and an increasing interest in ensuring customer data privacy.
Currently, NFC technology is being used by numerous industry sectors for executing tasks such as cashless payments, exchanging media files, scanning product information, verifying transportation tickets, and — the latest development — identity verification.
Shufti Pro has recently launched an enhanced identity verification service called “NFC Verification”. With the help of this advanced solution, the entire IDV process becomes frictionless, secure, and fully automated.
NFC Verification
NFC Verification, a chip-based identity verification service, uses the NFC feature of a smartphone to automatically read the user’s data from biometric ID documents. These documents include a government-issued ID card, a passport, or a driver’s license.
As NFC Verification streamlines the IDV process, NFC identity verification only requires customers to be in possession of a smartphone and a biometric identity document to have themselves verified within seconds.
Still wondering how it works? Here’s what happens.
Since NFC Verification is a chip-based identity verification solution, it has the ability to scan microchips that are found on passports and ID cards. These chips are embedded with the cardholder’s sensitive information, such as the document number and the date of issuance and expiry. Making the process more convenient, the touch-based NFC identity verification solution verifies the customer remotely simply through a tap between their biometric document and their smartphone.
Now that we know how it works, let’s find out more about where it will be used.
Banking and Finance
In the upcoming years, the banking and finance industry is expected to witness the highest CAGR, reaching a value of USD 28529.29 billion by 2025. NFC technology is regarded as a revolutionizing method for enhancing banking procedures across the globe.
Building on this information, NFC Verification’s robust AI-powered technology will allow banks and other financial institutions to verify the identity of customers with better accuracy and security during the onboarding process.
Healthcare Institutions
Unauthorized access to confidential medical records and over-the-counter drugs can be fatal to the health of a patient along with the institution’s reputation. Particularly due to the COVID-19 pandemic, medical frauds have been at an all-time high.
Fortunately, NFC Verification can enable hospitals, pharmacies, and other healthcare firms to weed out imposters so that unauthorized access to sensitive data can be eliminated.
Tourism and Hospitality
Technological advancements have empowered businesses and individuals alike. Using sophisticated strategies, criminals are often successful at providing fake or forged ID documents to avail hotel discounts and airline tickets at reduced prices. The same false documents can also be used to dodge security checks at airports. With NFC Verification, such tricks will not go undetected as it involves the verification of chip-based ID documents that are almost impossible to manipulate.
Final Thoughts
As discussed in this article, NFC technology has a profound impact on the modern-day world, and it is being increasingly used in most business sectors. It is therefore likely the trend will continue, resulting in a more secure and interconnected society.
