NFC i.e. Near Field Communication as name suggest that it is the communication technology which works between two instrument who are only few inch away. NFC builds upon RFID systems by allowing two-way communication between endpoints, where earlier systems such as contactless smart cards were one-way only.
Its major use is in contact-less payment systems and can replace many payment system like smart card, credit card and smart ticket etc. Most of the smart phone in the market have the NFC support and hence it can replace the existing payment and sattlement system.
Why NFC is not moving
There are two reason for NFC is growing slow, one is credit, debit, and identification cards are already a normal part of life and work well for most people. Smartcards are a directly competing technology, as they allow the same ease of use in some cases as the NFC-equipped phone. Should this technology in traditional cards see widespread acceptance, it may reduce the demand for similar, and more expensive, technology in the smartphone. Obviously, consumers are going to drive this market to a great extent. As mentioned in Weaknesses, most consumers do not have NFC-equipped phones, and even if some organizations adopt the technology, there may not be a market. Consumers must decide that the cost to purchase the phone, transfer data, and learn the new phone’s controls is worthwhile . If the infrastructure is not created because there are too few customers, customers will not purchase the device due to a lack of infrastructure. This could perpetually prevent adoption of the technology.
Consumers may also be leery of the security of the new technology: the more computerized the system, the more vulnerable it may be to malware and other attacks. These factors, in addition to the ordinary reluctance to change, may keep consumers from adopting the technology, making it useless to the service providers. Even if the technology is ultimately accepted, there is always the possibility of changing laws increasing its cost or otherwise making it more difficult to use. Since information about banking and finance would be exchanged through NFC, there will be legal requirements for its security and recordkeeping.
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