Engadget Primed: What is NFC, and why do we care?

Engadget Primed: What is NFC, and why do we care? -- Engadget

In reality, the tech behind mobile payments has been around since 2003 on a much smaller scale using near-field communications, more commonly known as NFC. The idea behind Wallet (amongst other services, like ISIS) is contactless pay -- using your phone as a credit card -- and is just one of the many ways NFC can be useful in our everyday lives. In fact, we're only scraping the surface of what's theoretically possible.

Google is definitely not the first company to dabble in NFC, but it appears to be poised and ready to push the tech's adoption forward at a rapid pace with the advent of Wallet and Offers. Until now the coals have been hot; but if a fire's going to start, someone monolithic has to throw a few newspapers in as kindling -- and Google volunteered. But what good is NFC if it's just an acronym that causes our eyes to glaze over? Is El Goog the only instigator? After the break we'll focus on what NFC is capable of, and why we want it on our phones as soon as yesterday.

Table of Contents
Behold, the magic of NFC
What can we do with NFC?
NFC: Where is it now?
Major Players
The system isn't perfect, yet
To the future... and beyond

Behold, the magic of NFC

NFC, the brainchild of Sony and NXP, is at the bottom of the wireless totem pole. It allows two devices embedded with chips to snuggle up together and transmit small pieces of data between each other when they are in close proximity. This data can be credit card information, coupons, tickets...you get the idea. As all of this is rather sensitive, it means you'll need to get up close and personal with the other device in order for it to suck down your data -- a simple swipe or tap should do the trick, and your most intimate bytes will soon be whisked away into the wilds of the internet.

Remember RFID? That's the baby that started it all, and it's been around since the '90s. RFID microchips are installed in reader tags that can be found in a number of everyday items -- they're found in stores, supply chain equipment, animal tags, and even "smart" passports. There's a good chance you already take advantage of it if you have a MasterCard PayPass. There's a RFID chip installed on your credit card that, when tapped on the payment station, will complete your purchase without needing to go the "old-fashioned" route.

Since NFC is based on the same technology, it's easy to mistake it for RFID. It takes the same type of chips and bumps it up a notch by adding computing power. That's why putting it on a phone is so critical; NFC not only needs the proper hardware (an antenna and controller, both shown below) but the right software (OS platform support, apps, etc) as well.

Engadget Primed: What is NFC, and why do we care? -- Engadget