Know and understand characteristics, uses, advantages and disadvantages of Near Field Communication (NFC) including payment using a smartphone

Published by Patrick Mutisya · 14 days ago

ICT 0417 – Near Field Communication (NFC)

6 ICT Applications – Near Field Communication (NFC)

Objective

Know and understand the characteristics, uses, advantages and disadvantages of Near Field Communication (NFC) including payment using a smartphone.

What is NFC?

Near Field Communication (NFC) is a short‑range wireless technology that enables data exchange between devices when they are brought within a few centimetres of each other.

Key Characteristics

  • Operating frequency: 13.56 MHz

  • Maximum range: 0–10 cm (typically 4 cm)

  • Data transfer rate: 106 kbps, 212 kbps or 424 kbps

  • Bidirectional communication (peer‑to‑peer), card emulation, and reader/writer modes

  • Low power consumption – can operate without a battery in passive tags

Common Uses of NFC

  1. Contactless payment (e.g., Apple Pay, Google Pay)

  2. Transport ticketing (e.g., Oyster, Octopus cards)

  3. Access control (e.g., building entry cards)

  4. Information sharing (e.g., business cards, Bluetooth pairing)

  5. Smart posters and marketing (tap to receive URLs, coupons)

Advantages of NFC

  • Speed – transactions complete in seconds.

  • Convenience – no need to insert cards or remember PINs for low‑value payments.

  • Security – short range reduces risk of eavesdropping; data can be encrypted.

  • Compatibility – works with many smartphones and dedicated NFC cards.

  • Low energy – passive tags require no power source.

Disadvantages / Limitations

  • Very short range – must be very close to the reader.

  • Limited data throughput – unsuitable for large file transfers.

  • Potential for “relay attacks” if an attacker extends the range with hardware.

  • Not universally supported on older devices.

  • Dependence on secure backend infrastructure for payment processing.

How NFC Payment Works with a Smartphone

  1. Setup – User adds a payment card to a mobile wallet (e.g., Google Pay).

  2. Tokenisation – The card number is replaced by a unique token stored securely on the device.

  3. Transaction Initiation – At the point of sale, the user taps the phone on the NFC terminal.

  4. Data Exchange – The phone transmits the token, a one‑time cryptographic code and transaction details over the NFC link.

  5. Authentication – The terminal forwards the data to the acquiring bank, which validates the token with the card issuer.

  6. Authorization – If approved, the bank sends an approval message back through the same path; the terminal displays “Approved”.

  7. Receipt – The user may receive a digital receipt on the phone.

Security Features in NFC Payments

FeatureDescription
TokenisationReal card details are never stored on the device or transmitted.
Dynamic C \cdot VA unique code is generated for each transaction, preventing reuse.
Secure Element (SE) / Trusted Execution Environment (TEE)Hardware‑based storage isolates sensitive data from the operating system.
Biometric / PIN verificationDevice may require fingerprint, face ID, or PIN before authorising a payment.

Practical Classroom Activities

  • Demonstrate a tap‑to‑pay transaction using a dummy NFC terminal and a smartphone.

  • Compare NFC with other contactless technologies (Bluetooth Low Energy, RFID) in a \cdot enn diagram.

  • Discuss a case study of a city that introduced NFC transport tickets and evaluate its impact.

  • Role‑play a security breach scenario and identify how tokenisation and short range mitigate risk.

Suggested diagram: Flowchart of an NFC payment transaction from smartphone to bank approval.

Summary Checklist

  • Identify the three operating modes of NFC.

  • List at least three everyday uses of NFC.

  • Explain why the short range of NFC is both an advantage and a limitation.

  • Describe the steps involved in a smartphone‑based NFC payment.

  • State two security mechanisms that protect NFC payments.