Make sure you look at Engadget's detailed analysis for more info and details...but here is my take ( i have borrowed some pointers from them)
Near field communication (NFC) is a technology that been around since 2003. However, it is a much more prominent technology today due to the wide availability of gadgets that could use it on a daily basis. What this means is that, the sword can finally be used where as before no one would be able to even lift the sword. NFC allows rapid communication and transfer of data (or any information) between two things in a safe manner. NFC is not just about having a credit card that is in your phone..no no...far from it. NFC is a very neat tech that allows limitless possibilities.
The full capabilities of NFC can be broken down into three main categories:
1. Card Emulation Mode - This is the most commonly understood capability. The mode in which Google Wallet and other forms of contactless pay will be based, card emulation mode is exactly what it sounds like -- the phone becomes your credit card. Emulating a traditional smart card makes it convenient for companies like MasterCard and Visa that already have infrastructures set up for contactless pay, since nothing has to be changed.
This credit card emulation mode can of course be easily argued against since using credit cards themselves dont take very long. The advantage of using an NFC device would simply be that there would be one master "credit card" that could replace all credit cards. Credit cards take 10-15secs to use so NFC tech here is not that useful....even with the advent of not having to pull out a specific credit card. This is the reason why i think the two other applications of NFC are much more valuable and point to NFC's future!
2. Reader Mode - This allows the phone to read passive RFID tags on posters, stickers, and other stationary objects that contain certain types of information on them. For instance, you could tap your phone on the reader tag in a movie poster and it would begin playing the movie trailer, provide theater times, locations, and so on.
3. Peer-to-peer (P2P) Mode - P2P offers interaction between two active NFC-equipped devices such as phones. Using this mode, you could make payments to another individual or business just by tapping the two phones together. If the ice cream truck comes barrelling down your street or if your neighbor wants to pay you for that cup of sugar they just asked for, cash would no longer be a necessary part of the transaction. Or, what if you just got a killer track and you want to share it with your neighbor on the bus? P2P Mode is the magic that'll make it happen.
And all of these modes of NFC tech can be applied to almost anything. I will list some that have little to do with the credit card functionality of NFC tech:
Near field communication (NFC) is a technology that been around since 2003. However, it is a much more prominent technology today due to the wide availability of gadgets that could use it on a daily basis. What this means is that, the sword can finally be used where as before no one would be able to even lift the sword. NFC allows rapid communication and transfer of data (or any information) between two things in a safe manner. NFC is not just about having a credit card that is in your phone..no no...far from it. NFC is a very neat tech that allows limitless possibilities.
The full capabilities of NFC can be broken down into three main categories:
1. Card Emulation Mode - This is the most commonly understood capability. The mode in which Google Wallet and other forms of contactless pay will be based, card emulation mode is exactly what it sounds like -- the phone becomes your credit card. Emulating a traditional smart card makes it convenient for companies like MasterCard and Visa that already have infrastructures set up for contactless pay, since nothing has to be changed.
This credit card emulation mode can of course be easily argued against since using credit cards themselves dont take very long. The advantage of using an NFC device would simply be that there would be one master "credit card" that could replace all credit cards. Credit cards take 10-15secs to use so NFC tech here is not that useful....even with the advent of not having to pull out a specific credit card. This is the reason why i think the two other applications of NFC are much more valuable and point to NFC's future!
2. Reader Mode - This allows the phone to read passive RFID tags on posters, stickers, and other stationary objects that contain certain types of information on them. For instance, you could tap your phone on the reader tag in a movie poster and it would begin playing the movie trailer, provide theater times, locations, and so on.
3. Peer-to-peer (P2P) Mode - P2P offers interaction between two active NFC-equipped devices such as phones. Using this mode, you could make payments to another individual or business just by tapping the two phones together. If the ice cream truck comes barrelling down your street or if your neighbor wants to pay you for that cup of sugar they just asked for, cash would no longer be a necessary part of the transaction. Or, what if you just got a killer track and you want to share it with your neighbor on the bus? P2P Mode is the magic that'll make it happen.
And all of these modes of NFC tech can be applied to almost anything. I will list some that have little to do with the credit card functionality of NFC tech:
- Monitor your health- eg your diabetes monitoring device can be NFC enabled and now you can use your phone to tap the diabetes device and get info from the device instantly. Likewise, your doctor can tap your diabetes device and know what kind of medication you're taking and when you've taken them.
- Mobile tickets for trains/planes/mass transit (this one is easy to imagine)
- Unlock doors: hotel rooms, cars, etc.
- Pair bluetooth devices by tapping the bluetooth device on your phone (no need to sync and discover)
- Log onto WiFi networks
- Check-ins: Foursquare, Latitude, etc.
- Share files between phones: music, docs, photos (tap devices and voila!)
- Store mobile "punch cards" for restaurants (tap to pay and tap to make a record of your visit-after 10 taps ...tap for free coffee for eg)
- Replace grocery store value cards with mobile coupons (kind of like credit cards but they have coupon value)
I think there's lots that can happen with NFC. Here's to hoping that developers do more than just use NFC for credit card purposes. As I've shown, there is a lot that this amazing tech can do.
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