NFC - Near Field Communication

You have probably already used NFC to make a contactless payment at the supermarket checkout, or could at least do so in theory with the right card. It is convenient and saves a lot of time when you only need to hold your card briefly against the terminal for small amounts, completing the payment process in a matter of seconds. In addition, services such as Apple Pay and Google Pay are becoming increasingly prevalent in shops, so we asked ourselves how this technology that makes it all possible actually works.

What does NFC mean?

The abbreviation NFC stands for Near Field Communication.

It is an international transmission standard that allows data to be transferred wirelessly over very short distances of up to 10-20 centimetres. An NFC chip built into a smartphone communicates with a corresponding counterpart, such as the terminal at the supermarket checkout or the lock on the front door. When you approach within a few centimetres, the pre-programmed process, such as payment or locking, is triggered immediately.

How secure is NFC?

The biggest security aspect in favour of NFC is the fact that data can only be transmitted over an extremely small distance of a few centimetres. This significantly limits the possibility of third parties recording the data in the vicinity. However, the concerns of NFC opponents are not entirely unfounded, as encryption of the transmitted data is not mandatory. This is why, especially when it comes to payment transactions, often only four contactless payments over £25 can be made before the card has to be inserted into the terminal again for security reasons.

What can you do with NFC?

The most important area of application is probably contactless payment at the supermarket checkout, whether by NFC-enabled bank card or smartphone. As soon as an NFC chip is installed, small amounts (usually up to £25) can be paid without entering a PIN code. If the smartphone is used for payment, a bank or credit card must first be linked to the phone. In addition to payment transactions, NFC is also used in tourism, postal services, access control or when the smartphone is to function as a paperless ticket.