Near Field Communication (NFC)

Near Field Communication (NFC) is a form of ‘contactless technology,’ the term applied to short-distance communications between two devices that are not physically connected. NFC is a short-range wireless connectivity technology that allows for interactions between consumer electronics, mobile devices and PCs. NFC-enabled products streamline and simplify interactions between consumer devices. Such devices can communicate peer-to-peer or on a client-server basis and typically embody a smart card (chip with processing capability) and short-range radio frequency technology.

Mobile NFC is defined as the combination of contactless services with mobile telephony, based on NFC technology. The mobile phone with a hardware-based secure identity token (the UICC) can provide the ideal environment for NFC applications. The UICC can replace the physical card thus optimizing costs for the service provider, and offering users a more convenient service.

Several varieties of ‘contactless technology,’ including NFC, exist today and are designed to operate over very short distances, typically less than 4 cm.

NFC is foreseen as a strong enabler to meet customer needs and drive value-added business models. NFC provides an intuitive and easy method for users to access services, as demonstrated by the rapid deployment of contactless public transport systems globally with many users. NFC has also been identified as a key sector for payment solutions with Amex, Mastercard and Visa actively driving forward contactless payment. The technology can be used for such purposes as fast information sharing and secure payment transactions by mobile. NFC can be used with many different types of devices and is compatible with Bluetooth and WiFi.

According to the NFC Forum, NFC operates at 13.56 MHz and transfers data at up to 424 Kbits/second and is activated when devices are within four centimeters of each other. The short transmission range makes NFC interactions particularly secure.

Additional Information

Q&A

NFC receives mobile boost (Telecoms.com, September 3, 2008)

Operators to Define Requirements for NFC Handsets (June 30, 2008)

GSMA Teams Up with European Payments Council (June 30, 2008)

Completion of Core Mobile NFC Standard to Spark New Services (February 29, 2008)

SIM / NFC based mobile services - the future starts here (ETSI Press Release - Feb 27, 2008)

An Easy Cell: Cell phones that double as credit cards are being tested in Spokane market

White Paper: Mobile Near-Field Communications (NFC) Services (GSM Association, February 2007; PDF - 504 KB)
The UICC-based architecture is recommended by the GSM Association, providing control to the operators for NFC applications such as payment and ticketing, but also providing the necessary security and remote management of these applications.

AT&T and Firethorn Announce Wachovia, Regions and Suntrust Bank Will Offer Mobile Banking to AT&T's Wireless Customers (AT&T and Firethorn press release, March 2007)

O2 announces O2 wallet with transport for London, Transys, Barclaycard, Visa Europe, Nokia and AEG (November 28, 2007)

Operators to Launch NFC-Based Mobile Payment System (GSMA press release, Nov 2007)

NFC Forum