NFC » All information about Near Field Communication via smartphone & credit card
Updated: 12.11.2024 | Reading time: 11 minutes
This text is machine translated.
Digitalization is progressing at an ever-increasing pace and is rapidly changing our working world. The efficient and secure exchange of information is becoming increasingly important. NFC technology offers a wide range of opportunities to optimize processes and increase productivity.
Near Field Communication enables wireless communication over short distances and opens up innovative fields of application in areas such as logistics, access control, mobile payment and marketing.
We will be happy to give you an in-depth insight into how NFC works and show you the differences to related technologies such as RFID.
We will explain how you can use NFC in your company to simplify work processes and increase data security. We also look at the security aspects and the future of NFC technology.
The three letters NFC stand for “Near Field Communication”. Literally translated, this means near field communication and refers to the electronic exchange of information over short distances.
The information contained in a memory chip (NFC tag) is transmitted wirelessly to a reader. The transmission range is limited to a few centimeters.
Due to the short range and the relatively low transmission rate of up to 424 kBit/s, NFC is not an alternative to Bluetooth. Rather, NFC must be seen as an extension or supplement to Bluetooth. For example, NFC makes it much easier to pair Bluetooth devices.
Four different NFC types
There are four different types of NFC, which differ mainly in how they transmit data and which communication protocols they use.
This has an impact on compatibility, speed and specific application options.
NFC-A:
- Based on the ISO/IEC 14443-A standard, which is also used by many contactless smartcards.
- Enables both passive and active use of NFC tags.
- Uses amplitude shift keying (ASK) to modulate the signals.
- Is the most widely used type of NFC and is supported by most NFC-enabled smartphones and devices.
- Typical areas of application: mobile payment (e.g. Apple Pay, Google Pay), local public transport (e.g. contactless tickets), contactless tickets or ID cards.
NFC-B:
- Based on the ISO/IEC 14443-B standard.
- Uses phase shift keying (PSK) for modulation. Considered more robust against interference and noise.
- Less widespread than NFC-A, but established in certain niches.
- Supports various security functions that are relevant for safety-critical applications and offers a higher data rate than NFC-A.
- Typical areas of application: E-government (e.g. in electronic passports), supply chain management, identification of products.
NFC-F:
- Based on an extension of the ISO/IEC 18092 standard and the Japanese Industrial Standard (JIS) X 6319-4, also known as FeliCa.
- Also uses phase-shift keying (PSK) for modulation.
- Mainly used in Japan and some Asian countries.
- Offers high data transmission rates and enables efficient communication with FeliCa-based systems.
- Typical areas of application: mobile payment in Japan, loyalty programs, public transport in Japan.
NFC-V:
- Based on the international ISO/IEC 15693 series of standards for Vicinity Integrated Circuit Cards.
- Enables communication with passive NFC tags over greater distances than the other NFC types: up to 1 meter.
- Preferably used for industrial applications.
- Particularly suitable for applications with high data volumes.
- Typical areas of application: Inventory tracking, supply chain management, asset tracking, access control system.
NFC is based on RFID technology and is an internationally standardized transmission format for the contactless exchange of data. RFID stands for Radio Frequency Identification and describes identification using electromagnetic waves.
In contrast to RFID technology, which uses different frequencies (125 - 135 kHz, 13.56 MHz or 860 - 960 MHz), the frequency for NFC is fixed at 13.56 MHz. However, NFC is not simply a subgroup of RFID, but a further development with its own specifications.
An important difference lies in the communication range: NFC is limited to a few centimeters, while RFID systems can work over longer distances of several meters, depending on the frequency. NFC also enables bidirectional communication, i.e. data can be exchanged in both directions.
So-called NFC tags enable the automation of a wide range of actions. NFC tags are small, passive chips that can be read and written to with NFC-enabled devices. They are available as stickers, key fobs or cards. As a result, NFC offers a range of benefits that can be used in both business and private environments.
Automation with NFC tags
With the help of a suitable app, NFC tags can be individually programmed for personal use via smartphone. When you leave the company building, all you need to do is briefly hold your smartphone up to the NFC tag in the company vehicle. The phone's Wi-Fi function is then automatically deactivated and a Bluetooth connection to the hands-free system is established. Another NFC tag at home could reverse the changes and also activate the loudspeaker function, for example. At work, on the other hand, an NFC tag can ensure that the smartphone is automatically switched to flight mode and connected to the company's internal WLAN.
Efficient data exchange
But there are many other practical applications. NFC enables data to be exchanged quickly and easily between two NFC-enabled devices. Contact data, text, images, videos or links can be transferred with minimal effort. In a business context, for example, business cards, presentations or product information can be exchanged via NFC.
Tracking goods with NFC tags
NFC tags can be used in the warehouse to identify and track goods. NFC transponders are attached to packaging, boxes, shelves or pallets for this purpose. This enables seamless control of the flow of goods from goods receipt to goods issue. In contrast to written labels, NFC tags are insensitive to soiling or fading and visual contact with the NFC tag is not necessary.
Secure mobile payment
A coffee in a bistro or a ticket at the cinema box office can also be paid for quickly and easily using NFC. For cashless payments, it is sufficient to simply place the cell phone on which the required payment service has been activated on the reader. Authentication takes place via PIN or biometric procedures, which increases security. EC cards or credit cards also enable this convenient form of payment. Instead of the smartphone, the credit card is simply placed on the reader.
Simplified Bluetooth pairing
Bluetooth applications are significantly simplified with NFC technology. For example, to pair Bluetooth headphones with a smartphone for the first time, Bluetooth must first be activated on the smartphone. Then the appropriate device must be searched for within the wireless environment and activated. In some cases, it is then necessary to enter code numbers to complete the pairing process. The situation is different if both devices are NFC-capable. In this case, it is sufficient to activate the NFC function on the smartphone and hold the phone to a designated point on the headphones. The Bluetooth pairing is then perfect.
For near-field communication to work, an electromagnetic field must be created between the participating devices. This magnetic field is used for both data transmission and energy transfer. As a result, NFC transmission involves an active device and a passive NFC tag.
Structure of an NFC tag with chip (1) and coil (2).
Active device
The active device can be an NFC-enabled smartphone, tablet, notebook or reader. It has an NFC chip and a radio coil that serves as an antenna. The coil is controlled at a frequency of 13.56 MHz and thus generates a constantly changing magnetic field. The magnetic field is then used to transmit data.
Passive device
Passive NFC tags contain a chip with memory and an antenna coil. When the tag is in the magnetic field of the active NFC device, the coil of the tag generates a voltage through induction. This supplies the passive tag with power. If there is sufficient electrical energy, the tag starts transmitting or receiving data.
Note:
As the radio coil in a passive tag also serves as a generator for the electrical energy, passive tags do not require their own power supply with a mains adapter, rechargeable batteries or batteries. This means that NFC tags, cards or stickers can be made extremely flat. Integration into a poster or billboard is therefore no problem.
NFC-Modi
In addition to simply reading passive NFC tags, there are other modes that an NFC-enabled device, such as a smartphone, can handle:
Card emulation mode:
In this function, the smartphone or tablet behaves like a passive NFC tag (credit card or employee ID card). Readers can identify the smartphone and read data. This means that the smartphone can be used to pay at an NFC terminal, for example.
Reader/writer mode:
In this application, the smartphone acts like an NFC reader. It builds up a magnetic field and can therefore both read passive tags and write new data to them. In this case, it is not necessary to purchase an additional NFC reader.
Peer-to-peer Mode:
NFC not only enables communication between an active device and a passive tag, but also bidirectional data exchange between two NFC-enabled devices. In practice, business card information can be exchanged quickly and easily.
Compared to other wireless communication technologies, NFC offers a number of security advantages. The short range of a few centimetres makes unauthorized reading of data more difficult. This is because the magnetic field strength decreases rapidly with increasing distance, making data transmission impossible.
However, it is very easy to use an NFC-enabled smartphone as a reader. In a crowd of people, you could easily read the entire bank card data, including the card number and expiration date, of a person standing close by without authorization.
Attention important:
To protect against unauthorized data access, NFC cards should always be kept in special protective sleeves.
This is because it is very easy to place a smartphone or reader in your back pocket and read credit or bank cards unnoticed in crowds of people.
In this case, the protective sleeves shield the magnetic field of the reader so that no unauthorized data exchange can take place.
Another security risk is card loss. In the event of theft, physical possession of the card is perfectly sufficient to make purchases at the expense of others.
For this reason, you should always keep an eye on your current account transactions and have the NFC card blocked immediately in the event of card loss or unauthorized debits. In this case, liability for financial losses should also be clarified with the financial institution.
But caution is also advised with smartphones. Prepared NFC tags that have been stuck over the original tag of a poster, for example, and shield it, can transfer malware to the cell phone. In this case, the only thing that helps is to keep the virus scanner on your cell phone up to date.
Smartphone with NFC
A suitable app (such as Apple Pay, Google Pay or a banking app with NFC function) must be installed in advance so that the cell phone works in the same way as an NFC-enabled bank or credit card. The payment data is stored in the app, e.g. the credit card number or bank details.
The smartphone is then simply held up to the NFC reader to initiate the payment. Smaller amounts of money can then be transferred immediately and without entering a PIN.
For larger amounts, authentication of the smartphone owner is required for security reasons.
Important:
Even if cashless payment is very simple and convenient. You should always bear in mind that you are fully disclosing your purchasing behavior to the respective service provider. The extent to which this data is then passed on for profit depends on the respective service provider and is handled very differently.
NFC-based payment systems in companies
NFC-based payment systems offer various advantages for businesses, such as restaurants and supermarkets:
- Faster processing of payments: Contactless payment with NFC is faster than cash payments or inserting a card into a terminal. This can lead to shorter waiting times at the checkout and increase customer satisfaction.
- Improved hygiene: As no physical contact with the checkout terminal is required, mobile payment with NFC contributes to improved hygiene.
- Modern and innovative appearance: By offering NFC-based payment systems, companies can convey a modern and innovative image.
NFC technology is already firmly established in restaurants and supermarkets. And not just for the payment process. More and more companies are now using the practical NFC tags for clever marketing.
Also at trade fairs and exhibitions. Print and online advertising can be easily combined with NFC posters and flyers. Interested visitors can obtain product information and operating instructions or access videos, company presentations and exclusive content without having to wait long.
Even business card information can be exchanged conveniently and securely via NFC.
NFC technology is also being used more and more in Industry 4.0. Due to the constantly advancing digitalization in companies and businesses, the existing network offers the ideal platform for the use of NFC technology. Here are some possible applications:
Logistics and inventory management
NFC tags are simply attached to products, pallets or containers. Information about the goods, such as origin, destination, quantity, storage conditions and much more, can then be read out and transmitted to a central system in real time without any great effort. This enables efficient goods tracking, simplifies stocktaking and optimizes warehousing. NFC tags are also used for product identification and authentication to prevent counterfeiting.
Production and monitoring
In production systems, information such as quantities, consumption or operating status can be recorded and stored. The information is regularly read out and transmitted to the higher-level system so that production processes can be monitored and optimized. For example, machines can be equipped with NFC tags to store information about their maintenance status.
Maintenance planning and failure prevention
Not only production data, but also maintenance information can be collected and evaluated. Centralized recording allows maintenance work to be coordinated and spare parts to be scheduled without interfering with ongoing production processes more than necessary. This helps to reduce unplanned downtime and stabilize production processes.
Access authorization and user approvals
NFC transponders, NFC cards or even NFC-enabled smartphones can serve as “keys” to certain rooms or areas. Authorizations can be assigned individually. It is even easy to unlock computers or systems for an authorized group of people.
Conclusion:
These few examples clearly show how NFC can help to reduce costs, optimize processes, increase efficiency and secure the value chain. The possible applications of NFC technology are just as diverse as the industries in which it is used. This is because integration into an existing IT infrastructure is generally possible without any problems. But that's not all. Due to the relatively short transmission distances, unauthorized reading of the data from outside is considerably more difficult.
Access control using RFID technology has been used successfully for years. However, the technology with readers and RFID transponders or transponder cards is rather inflexible. For companies in particular, granting external visitors access to certain offices always involves a certain amount of administrative work. Visitors first had to register at the gate or reception and were then issued with special access cards or chips to open the door. These visitor cards then had to be returned when leaving the company premises. With the help of clever NFC technology, all this can be dispensed with.
For example, the Fraunhofer Institute has developed “Key2Share”, a standard that significantly simplifies the management of access rights. NFC-enabled smartphones are used as electronic key cards.
The information on who is allowed to enter which area and when is written to a file from which a QR code is generated. This code can then be easily sent in a variety of ways. The recipient scans the code and immediately has the right key card in their hand with their NFC smartphone. Authentication takes place via a secure connection between the smartphone and the access reader.
The use of NFC technology is a simple, fast and reliable way of recording employees' attendance times. Ideally, the necessary NFC tags are integrated into the company ID cards.
The readers are installed in the company building at central points in the entrance area, at certain work zones or in the break area.
As soon as the company ID card or a registered NFC card is held up to the reader, the individual employee ID and the current time stamp are recorded and transmitted promptly to the central time recording software.
The electronic recording of working time with NFC technology offers companies numerous advantages:
Simple: Operation is intuitive and requires no training.
Precise: Working times are recorded to the second.
Efficient: There is no need to record working times manually.
Clear: Current working times are available at all times.
Secure: Clear assignment thanks to individual employee IDs.
Flexible: Can be integrated into different working time models.
With appropriate access to the time recording software, employees can also record working times online when working from home or on business trips. The data collected by the time recording system can easily be used for working time reports or payroll accounting.
Nobody can say for sure how Near Field Communication or NFC chips will develop in the future. But the trend is that NFC technology will continue to spread. In the B2B sector, NFC is expected to play an important role in optimizing processes and increasing efficiency, particularly in the areas of mobile payment, Industry 4.0 and the Internet of Things (IoT), where devices communicate with each other via the internet.
Sooner or later, the NFC-enabled smartphone will also replace the wallet. This will also eliminate the numerous plastic cards that are usually carried in wallets. Even ID cards and driving licenses in card form will probably no longer be necessary. All of this will be taken over by our smart phones.
But the integration of wareables is also becoming increasingly interesting. NFC tags can be integrated into (work) clothing or accessories in order to exchange information with smartphones, smartwatches or smart glasses.