Payments

NFC may be most well known for mobile payments, where it powers services like Apple Pay and Google Wallet. These solutions make shopping simple, with tap-to-purchase and added security.

Instead of using the same credit card number for each transaction, mobile payment solutions leverage the power of NFC card emulation to generate a single-use transaction key that can only be used once and expires within seconds. This technology makes it nearly impossible for bad actors to make unauthorized charges on an account.

Because NFC chips can be embedded into physical products, any item can become its own payment terminal. With just a tap a customer can interact with an embedded product to make a purchase. Empowering objects to sell themselves streamlines the shopping experience and eliminates the need to stand in line to checkout.

Tap-To-Pair

Pairing Bluetooth devices, or connecting to a new Wi-Fi network can be a real pain, especially if you forgot the password. NFC tags remove these pains by pairing devices with just a tap. Because NFC chips can securely store passwords and can relay pairing information, they are a great way to seamlessly connect a phone to a Wi-Fi network or Bluetooth speaker.

Tap-to-pair eliminates the need for users to search through lists of devices to connect to and manually enter a password. This method is easier for users and more secure because passwords are transmitted securely without having to be written down, where they are often shared.

The Apple Watch uses NFC to pair itself to gym equipment for more accurate workout statistics. Supported machines allow the health app to sync heart rate, distance traveled and calories burned between the watch and machine. Apple calls this functionality GymKit and is rolling out support to high-end gym equipment manufacturers.

Embedded Experiences

While NFC is a great technology for making purchases, it arguably provides more value after the sale, during an item’s use. Because NFC tags are small, durable, lightweight, and inexpensive they can be embedded into physical products that would otherwise have no digital connectivity. Once embedded with NFC, those products can drive to online content with just a tap, connecting the physical and digital worlds.

This functionality opens up new possibilities where all physical things can have an online identity. This identity is often referred to as an experience because it augments and enhances the experience of owning an item. Because experiences exist online, their possibilities are nearly endless. Marketers often take advantage of this, seeing it as an opportunity to provide consumers with relevant content and directly reach customers.
Examples include Adidas World Cup Official Match Ball, Staple Pigeon, and Sneaker Con Legit tags.

Additionally, these digital experiences can be added to in-person events.
For example, Lévy Gorvy leveraged NFC to add digital experiences to its “Warhol Women” exhibition, creating an even more interactive experience lasting beyond the in-person event. In another use, NFC is being used to activate chatbots to better engage in-person visitors.

Security

One of the most powerful uses of NFC is security. Similar to how NFC payments are made more secure with a rolling code, the same technology can be used to verify users, products, and ensure content exclusivity.

Password Replacement

Let’s face it. Remembering passwords is hard. Every password should be unique, and every site has its own password requirements. It’s a lot to remember. There has to be a better way. And with NFC there is.

Using a physical chip, NFC enables users to authenticate themselves to systems such as websites, apps, physical doors, car locks, and even ignitions. Because these chips are discrete they can turn almost anything into a password replacement.

Product Authentication

Counterfeits have arisen as a real threat to customers seeking legitimate products, especially with fakes increasingly sold on legitimate sites like Amazon, Facebook, and Instagram. While some brands try to thwart these efforts with holograms, micro-threading, and QR codes, NFC provides the most secure product authentication.

Once a legitimate product is embedded with NFC at the factory, it is given a unique digital identity that can be verified by customers before purchase. This also makes it easy for retailers and brands to discover fake merchandise before it reaches unsuspecting customers.

Exclusive Content

Enabling more than just authentication, products embedded with NFC can also provide exclusive content to customers, using NFC rolling code as a key to ensure only those with an original product can access the content. This exclusivity allows things like eTickets, mp3s, videos, and more to be included with purchase. Transforming physical items into an omnichannel experience opens up new possibilities for brands and customers alike.