Introduction & Background
Introduction
“Build it into something you always carry — a phone — and then you have something (Wired).” Near Field Communication, or NFC, is a simple technology that has blossomed into a hot-topic discussion in today’s world of mobile devices and technology. NFC is essentially a short-range wireless technology that transfers small types of data, but with the introduction of two-way communication and data encryption, it is sure to be a household name in no time. While NFC is successful across a range of different uses, the most important has become the transfer of payment information for contactless mobile purchases. By encrypting the data as it flows, NFC has stood out as the go-to technology for major mobile device manufacturers and financial service companies that are desperately attempting to enter into the world of mobile-commerce.
Background
In 1983, the first patent involving Radio-Frequency Identification, or RFID, technology was granted to Charles Walton (Wikipedia). And up until just a few years ago, RFID continued to remain the industry standard: used for retail inventory tags, toll road “E-Z Passes,” and ExxonMobil’s SpeedPass™. But in 2004, a new technology came onto the scene when Nokia, Philips and Sony formed the NFC Forum (NFC Forum). The three companies immediately began working on what would eventually become the specifications for NFC; paying close attention to making certain that the specs were universally compatible with any NFC-integrated device. Two years later, in 2006, the NFC Forum completed their initial specs for the technology (NFC Forum) and in the same year, released the first-ever NFC-integrated device: the Nokia 6131 mobile phone (NFC Forum).
Several milestones have been reached since the 6131 though. The first of which being a monumental development in 2009: the creation of the Peer-to-Peer standards. This new standard would allow for more specific data transfer and controls, including Bluetooth™ initiation (Wired). Today, more than 100 companies and organizations represent the NFC Forum, including new players such as Intel, Google, MasterCard, Microsoft, PayPal and Visa (The Globe And Mail). The list continues to grow, and with it as does its reach. If all goes according to plan, NFC chips will be the industry standard, and come within every mobile device. Soon, mobile-commerce will finally be efficient, simple and secure.