Near Field Communication: Advantages, Disadvantages, and Applications

Final Report
Full Name
Student ID
Subject ITC571 – Emerging Technology and Innovations
Assignment No Final Report
Due Date 30-May-2018
Lecturer’s Name Malka N. Halgamuge
Near Field Communication
Your Name
Your Email
School of Computing and Mathematics, Charles Sturt University, Melbourne, Victoria
Abstract - Near-field communications (NFC) is a system that transfers data from a source (such as a phone)
to another device (like a payment system). This is referred to as one-way communication. One way
communication is becoming more and more prevalent since the release of the iPhone 6 (and family) even
though it has existed for the last decade with applications such as Google Wallet. The other way NFC
works is when two devices that can both read and write to each other that will transfer data such as
contacts, photos, and texts. This made headlines when Samsung released their Galaxy 3 and what they
termed as S Beam. Usually, the distances that NFC takes place over is somewhere between 3 and 18mm.
This is important because while cash was being replaced with credit cards; credit cards are likely to be soon
replaced with cell phones for payments. However, there is a substantial security risk as it was deemed
around 22% of all cell phones are lost or stolen and 50% of those are never recovered. Imagine if your
payment or bank data was unsecured on a cell phone that was lost or stolen. There is an issue with the
standard. How many places currently offer NFC payment stands? While this is apt to change with the
popularity, now it is not an effective way to pay everywhere you go. If you still need to bring your wallet to
70% of the places you go shopping what is the point of having an NFC wallet type application?
Key Words— Near Field Communication, Mobile Payment, NFC, one-way communication, and
applications of near-field communication.

1. INTRODUCTION
Near field communication or NFC is a wireless connectivity that only works in a short rage. In order to
use the NFC, the two devices need to put nearer to make it works. It does not need to make it touch each
other but only just put it nearer and once it gets connected, all the data will be transferred. It is similar to
RFID which stands for Radio Frequency Identification. The RFID is only can be read by the user. The info
from the card are send to the user and the user cannot edit the info and returned to the card. It is one way
communication whereas for NFC, it is a two way communication between devices. Benefits of the use of
NFC are in the aspect of easy to use, security and versatility [1]. For the aspect of easy to use, the user does
not need to bring multiple card in their wallet or having hard time to search the card needed in their wallet.
The user only have to load all the information of the card into their phone via NFC and make payment or
earn reward points directly into their account without need to carry their cards everywhere they go. Next, in
the aspect of security, if the person happen to have his or her wallet stolen, the thief would easily get the
access to use the card that the person have. However, by having all the information of the card stored in the
smartphone, the thief would not be able to use the card because the person can set password in his or her
phone. Therefore, the thief need to unlock the password in order to get the access to the card. Moreover,
GPS from the smartphone might able to track the position of the thief might be. NFC provide versatility to
the user as they are able to pay for parking, pay tolls, open car doors and many other activities that are able
to do by using the device. This NFC can be said as an advancement in technology in human daily life [2].
However, there is also a disadvantage to using the NFC technology. It involves the company agreed to
use the NFC. If the company does not want to use the NFC technology, the user cannot have the benefit of
NFC which make the payment process easier without the need to bring a wallet. Since all of the
information are stored in the phone or only one device, this would gain the interest of the hacker to hack the
phone as the smartphone are become more and more develop and just like small computer that can behold
around and easy to bring to anywhere [3].
The application of NFC can be used to ease human’s daily activities. For example, people who jog can
buy mineral water without the need to bring some cash. They only need to wear the fitness bracelet that
contains NFC and scan it. Then, they can get their mineral water. They can also check their fitness by
scanning from the fitness bracelet to the phone that also has NFC. Another example that familiar in
Malaysia is Touch-n-Go card. The driver only needs to make contact with the Touch-n-Go box, and it will
automatically detect and pay the tolls [4].
NFC technology has enabled users of smartphones and other devices that contain NFC tag to
communicate with other enabled devices. NFC has allowed many people to pay for goods and services,
play games, and learn new things. For instance, individuals can now swipe their smartphones at the
checkout lanes in grocery stores, wave the device over a display at the local museum, or even pump phones
with colleagues at work or friends to share the latest videos and games. The majority of people benefitting
from near field communication include organizations looking for more secure and faster payment for
clients, buyers checking out at a grocery, and students touring a museum [5].
NFC technology often maintains interoperability of different wireless communication techniques
such as Bluetooth and several other NFC standards. Compatibility is necessarily the key to the growth of
NFC as a generally accepted data communication and payment method. NFC compatible devices must be
able to effectively communicate with other wireless technologies as well as display the ability to interact
with copious different types or forms of NFC transmissions [6].
Meanwhile, the NFC Forum, founded by Nokia, Phillips, and Sony in 2004, enforces strict
standards that every manufacturer must meet or adhere to when designing all NFC compatible devices.

NFC technology, unlike other contactless communication technologies, is fast and convenient. This
technology is accessible in Asia and Europe. It has also continued to spread in several other parts of the
world, including the Americas and the United States [7].
NFC tag in small posters is a typical example of passive devices that not only store information but
also communicate with the reader. However, these passive devices seldom read other devices actively. NFC
technology would also permit peer-to-peer communication, allowing both devices to send as well as receive
information. Many individuals and businesses have significantly benefitted with the advent of NFC
technology. A customer can pay for groceries, board a train, store loyalty points, or redeem coupons by
integrating paper coupons, credit cards, and subway tickets into one device. This will ensure convenient
shopping and faster transaction times for customers [8].
In essence, customers will be happier and more satisfied owing to less waiting in the line. Since the
customer carries around few physical cards, he or she is less likely to misplace or have it stolen. A
significant number of companies are currently using NFC technology and mobile payments. For instance,
PayPal and MasterCard offer money transfer via smartphone. As the technology gains its standing and
prominence in many countries, more smartphones that are compatible with NFC technology will be
available in the market. In the same way, more stores in the United States and across the globe will offer
NFC card readers mainly for customer convenience [9].
NFC technology presents a platform for multiple applications like mobile payment, access control,
and ticketing. The primary significant feature of NFC is the uncomplicated accession of data by merely
touching a device with an NFC capacitated reader. Near Field Communication is ground on the technology
of Radio Frequency Identification (RFID) that functions at frequency 13.56 MHz, with the quintessential
applicable distance linking two NFC devices at 10cm. Contemporary operation model for NFC, empowers
customers to connect to a gadget to exchange data, scan devices, pay for a product, set up a transaction and
interact by tapping a smart card or smartphone that is NFC equipped against an NFC sensor and finalize the
deal. This whole process is protected through cryptographic binding [10].
An NFC platform that is secure contains various components: Baseband or application processor,
RF connectivity device, contactless front-end (CLF) modem/controller and a secure element. Baseband is a
central processing unit that guarantees the performance specifications are met. The baseband chip is
successively ameliorated between periods of 6-12 months when a new technology is introduced. RF
connectivity device offers additional wireless connectivity to a handheld and integrates complementary RF
modes such as WLAN and Bluetooth (the Secure element is a safety measure microcontroller that is
homogeneous to those employed in e-identity applications and smart cards [11].
Trusted computing provides services to govern trust choices by incorporating a Trusted Platform
Module into the targeted devices. Homogeneous to a smart card the TPM integrates cryptographic
primitives, but it is however physically attached to its host device. A root for trust lies on the basis that the
tamper flexible integrated circuit comprises of implementations for random number generation, public key
cryptography, cryptographic hashing and critical generation [12].
Mobile Payment
Paying with the phone is a new trend, making it to where you do not have to carry your debit and
credit cards with you. Most places have up to date software that makes it easy to pay with your phone.
You open apple wallet or various other apps, and instead of the cashier pressing card to swipe it, they’ll
press apple pay, you then place your phone over the credit card machine, and in about 10 seconds’ tops,
your meal or items have been purchased. No need to worry or not if you forgot your wallet unless they
place you happen to go to does not have up to date technology [13].
Many cell phone providers have electronic wallet capabilities, or at least the main ones do. AT&T,
Verizon, and T-Mobile, all have the wallet capabilities. This works just like Apple pay where you can
transfer your payment option electronically, near the receiver, and your purchase has been made. While

telephone providers allow this, not all of the banks do. Members Trust Federal Credit Union (MTFCU), is
one that does not allow this. They feel like the app is not secure enough. Even though “the goal of the new
service is to ‘fundamentally transform’ the way people shop and pay for items,” some banks remain
skeptical of the safety of our finances [14].
Mobile payment (or mobile money transfer/mobile wallet/mobile money) is a payment service
performed via or from a mobile device and operated under strict financial regulation. It enables consumers
to pay for various goods and services via mobile phone, instead of paying using credit cards, cash, or
cheques. Countries all over the world adopt mobile money transfer in different ways (Teh, Ahmed, Cheong
& Yap, 2014). The mobile money transfer market for commodities exceeded $300 billion globally in 2013,
excluding contactless money transfers and NFC transactions. Most developing countries have deployed
mobile money as an ultimate solution to the unbanked community. This community constitutes about 50
percent of world’s population. According to Financial Access Report 2009, virtually all mobile payment
networks and service providers use mobile money transfer mainly for micropayments [15].
Credit card companies, financial institutions, Internet companies, mobile network operators, handset
multinationals, and significant telecommunications infrastructure have successfully adopted mobile money
transfer and mobile payment solutions. Other companies such as PayPal, Google, and GlobalPay have
implemented a cloud-based approach or technique to execute in-store mobile payment. Meanwhile, NFC
2.0 and Near Sound Data Transfer use audio signal-based payment. NFC technology is also useful for
making payments via mobile devices particularly for purchases made in transportation services and
physical stores [16].
NFC is arguably the ticket to the future in which individuals will be able to pay for goods and
services using their phones. NFC technology is a viable solution to eventually shield wallets from fraud and
theft, especially considering the numerous credit card data violation or breaches in the recent past. Retailers
such as Walgreens, Target, and Macys have already put in place NFC-based pay terminals. These
contactless pay terminals have improved transition to mobile payments. Apart from iPhone 6 and iPhone 6
Plus, phones that are compatible with Google Wallet can also use NFC-based terminals [17].
Finally, the most significant concern surrounding NFC technology and mobile payments is security.
However, any intercepting or hacking would be difficult given the complexity associated with the mobile
payment. The user would then have to enter a passcode or scan his/her finger as a way of approving the
transaction for payments. The secure element (SE), a separate chip, would then help in validating the
transaction. SE will play an integral part in relaying the authorization back to NFC modem. At this point,
the payment would finish processing just the same way it would in the transaction involving standard credit
card swipe [18].
NFC for your home and car
Near Field Connection has taken the convenience factor to a whole new level. From being able to
start your car with your phone to locking your house’s security system down, with the push of a button. The
convenience of making purchases in stores, without having to pull your wallet out is uncanny. But is the
risk worth the reward? [18].
There are many that NFC is useful, a couple of them being in your home and your car. It is no secret
that technology is continuously advancing and adapting to our lifestyles. In your home, everything from
your Air Conditioner to your Security system can be changed or adjusted from your phone, and some cars
allow you to start them with your phone, and control the inside with your phone. This is handy especially in
the winter time [19].
There are so many ways to use near field communication in your homes. For your security, you can
download the app that goes with your security system, ADT has it, and if you feel like there is a possibility
that you forgot to lock down and arm your house when you left, all you must do is open the app, click arm,
and be worry-free. With this technology, it saves you time and money from not having to turn around.