A near-field communication tag (NFC tag) is a sticker or wristband that contains tiny microchips that mobile devices within range can read. These microchips contain information. Custom NFC tags can send data to other mobile phones that have NFC capabilities. NFC tags can also change handset settings or launch a website, among other things.
For short-range connections, NFC and RFID rely on inductive coupling. The reader device generates a magnetic field by passing an electric current through a coil. When a tag with its coil is brought close to the field, an electric current is generated within the tag without any physical contact or wires. When the tag makes initial contact, any stored data on the tag is wirelessly transmitted to the reader.
NFC business cards have a maximum range of a few centimeters, and most smartphone apps will only initiate communication if physical contact is made. This is done to prevent accidental connections, which is important because the technology is frequently used to transfer sensitive data.
NFC devices are bidirectional, which means they can function as a tag and a reader. You can use the same mobile device or other hardware for both applications.
Payments with NFC technology are simple. Vendors or customers have no complicated set-up process. You only need an NFC-enabled device, such as a smartphone, tablet, or card reader. Customers can then easily make payments by hovering their NFC-enabled device or card near your POS system. Customers can use this technology to make purchases using their preferred mobile wallet system.
Using NFC technology to accept payments is more efficient. You will be able to take payment from customers faster and move through lines more efficiently because it only requires devices or cards to hover above a reader. You will also not require as many employees at your store’s checkout.
NFC tracking methods will benefit retailers who need to process and manage large volumes of inventory. You can buy pre-encoded NFC tags with sequential numbers and use a QR inventory app to connect the NFC tags to the inventory items. When inventory items are labeled with NFC tags, they can be tracked using an NFC-enabled smartphone with the chip or a QR inventory app. Continue reading the infographic below from NFC Tagify to learn more about the pros and cons of NFC tags.