NFC technology

Near field communication (NFC) is a set of standards for smartphones and similar devices to establish radio communication with each other by touching them together or bringing them into close proximity, usually no more than a few inches. It allows two devices embedded with chips to snuggle up together and transmit small pieces of data between each other when they are close to each other. This data can be credit card information, coupons, tickets...you get the idea.

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.

Near Field Communication (NFC) technology makes life easier and more convenient for consumers around the world by making it simpler to make transactions, exchange digital content, and connect electronic devices with a touch.

Unlike Bluetooth, no pairing code is needed, and because it's very low power, no battery in the device being read. By tapping your phone on a contactless payment terminal in a shop, train station or coffee shop is able to identify your account (and even your personal preferences, shopping habits and even your most frequently travelled route home) and takes payment through an app on your phone.

The full capabilities of NFC can be broken down into three key genres:

Card Emulation Mode - 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.

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

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. NFC is coming in a big way. Yes, there are still a lot of wrinkles that need to be ironed out, but the increase in support in the last six months has been exponential. 

A standards-based connectivity technology, NFC harmonizes today's diverse contactless technologies, enabling current and future solutions in areas such as: Access control, Consumer electronics, Healthcare, Information collection and exchange, Loyalty and coupons, Payments and Transport.

NFC has long been supported by a huge number of Android handsets. Though Apple is yet to embrace NFC, flagship and mid-range handsets from the likes of Samsung, HTC, Motorola, Nokia, LG and Blackberry all include NFC and the upcoming devices will also be NFC enabled.