What is NFC and what is it for?

It’s the new world benchmark in communications – and it’s just getting started. This is what NFC is, what its advantages and limitations are, and how it can be applied to any business.

Contactless payments, instant data transfers, and real-time inventory management. NFC is the groundbreaking tech behind this and many other innovations, making life easier for millions of people around the world. But despite its popularity – and 2 billion compatible devices – companies still struggle to make the most of it. Find out exactly what NFC means, what its potential and limitations are, and how to put it to work in your business.

What is NFC?

NFC is the acronym for Near Field Communication, a disruptive technology that allows two devices to communicate when at very close range, with no cables or setup.

Mobile phones, tablets, smartwatches, credit cards, and many others can thus share data with ease. The only requirement is that the distance between them does not exceed 10 cm, avoiding accidental connections and securing data transfers. 

The most visible application is contactless payment. But a far vaster universe of benefits awaits those that can use NFC in other areas – from stock management to customer experience.

What are the advantages and limitations of NFC?

Like any technology, NFC has advantages and limitations. Among the primary advantages, the potential for innovation stands out: NFC enables increased process efficiency, agile communication, and reduces human error.

On the one hand, NFC is very practical. In fact, wires and cables are made redundant with NFC (so long barcode readers), as is any form of setup (such as Bluetooth pairing, for instance)

Another positive aspect is that it is universal. NFC works on any device and in any country and can be applied to any industry–which simply does not happen with QR, EAN or barcodes. There are no equipment or location constraints.

Last but not least, NFC transfers are secure. Operating at close range prevents accidental activations, meaning a financial transaction only happens with an actual user intention. In addition,  information is encrypted and cannot be accessed by third parties.

However, NFC has some limitations. For example, data transfer rates are (still) relatively low, at a maximum of 424 Kbps. This transfer speed, however, is enough to perform the most common communications. In addition, its short range, which may be a safety advantage, is also a limitation because it prevents long range comms.

7 NFC technology applications for companies

NFC opens doors to many applications for businesses, in every industry, from payments to advertisement. 

1. Payment method

This is one of the most popular applications. NFC allows instant payments by simply approacing a payment terminal. Giants like Apple Pay, Google Pay or Samsung Pay incorporate this technology, and virtually every contactless payment in the word operates via NFC.

2. Identification of persons, equipment and places

NFC technology can identify equipment, people and locations. This function ensures that a particular person has been in a certain place or equipment. Because NFC tags are discrete and small, they can be placed anywhere – in every equipment, spare part, or material. For instance, it is possible for the maintenance team to check in at each verification point. Or automatically detect warehouse ins and outs. And when you need to control access, NFC can help verify who can access certain locations.

3. Stock management

NFC can help identify the location of a particular item and get real time information, such as  production lot and other type of documentation. It optimizes logistics and transportation areas, and makes the entire inventory process much leaner.

4. Customer experience

NFC technology can also improve customer experience. For example, customers might access an NFC tag for a particular product and find various information, such as manufacturing materials or nutritional composition. They can also receive offers, earn points or benefit from another type of reward, through a striking interactive experience, using text, images, music or videos. Although this is already available with QR codes, it is not as simple as with NFC, which does not require the use of the camera.

5. Safer working environment

NFC helps teams control internal protocols, monitor performance and ward off safety hazards that could pose a risk to employees. For example, NFC can automatically stop a machine if an employee enters its workspace. Thus, equipment and areas that require special care can benefit from NFC technology.

6. Advertising

It is possible to attract potential customers through smart billboards via NFC technology. When your smartphone approaches the image, NFC grants access to a multitude of data and experiences. For example, it can open a web page, download an app or music, provide discount vouchers and offers, or point users to the closest store location.

Somengil, constantly innovating

Thanks to NFC technology, companies can benefit from greater efficiency and operational safety, and achieve a competitive edge. Somengil is continuously looking for new tools for technological evolution. The MultiWasher, a state-of-the-art industrial washing machine, is especially important for businesses where washing quality is a critical success factor. Schedule a webinar and see the impact of this machine firsthand.