NFC (Near Field Communication) technology enables a secure wireless exchange of information between two devices over a very short distance (within a few inches). It is ideal for transmitting small amounts of data with minimal set-up time and power consumption. NFC has a great potential for a wide array of uses, especially for mobile payments.
At the moment, Near Field Communication is being increasingly used for the payment of goods in-store and as transport tickets. Over time NFC can phase out signature- and PIN-based cards.
Here are 5 supporting facts about the bright future of NFC as a technology for digital money transfers:
1. Consumer appeal. The allure of NFC technology is its simplicity. To complete a transaction in the NFC-based mobile payment system the user has to wave a smartphone over a POS terminal with NFC reader, or tap the phone against it. (The system would work only with mobile devices that have special NFC chips.) NFC gives consumers the option of using mobile devices to make easy, convenient and secure everyday payments.
2. Going mass-market. Mobile devices are car...