Contactless Smart Cards, RFID, Payment, Transit and Security

Contactless, RFID, and NFC in tandem bring new opportunities in '05

Thursday, December 16, 2004

A panel of ID industry experts provided predictions for 2005. One of these glimpses into the future will appear here each day during December.

In the coming year, we expect exciting advancements in short-range “proximity” wireless communications between consumer devices, with the combination of RFID and near-field communication (NFC) technologies. While much of the attention on RFID in 2004 has focused on retailer mandates and government passport requirements, its use in contactless commerce applications has continued to grow, with the expansion of credit card and bank issuer pilots, and amusement and sports venues adding RFID to make consumer purchases faster and easier.


With new NFC applications and protocols in development, and set to be finalized in the coming months, we will see innovative trials of short-range wireless interaction in applications for consumer electronics, mobile devices, PCs, smart objects, as well as for payment. A few such NFC/Proximity RFID pilot applications have already been announced with the participation of several key industry customers such as American Express, MasterCard, Motorola, Nokia, NTT DoCoMo and Vodafone KK.

NFC devices operate at 13.56 MHz in very close range, up to about 20 centimeters. It enables two devices to communicate by instantly configuring them to form a peer-to-peer network. Once this configuration data is shared between the devices (such as a cell phone and laptop) over the NFC/RFID interface, the devices can continue to interact by using Bluetooth or WiFi to establish faster and longer-range communication.

Those investigating RFID and NFC technology, from consumer device manufacturers to wireless telecom providers, also envision consumers using their devices to perform secure transactions. These include retail credit or stored value payments (such as using an RFID-enabled cell phone to purchase a subway ticket or making a retail purchase anytime, anywhere - and immediately connecting to the bank’s authorization network to validate the transaction), or for access control to sensitive areas. Additional security can be supported by integrating biometrics with RFID.

RFID and NFC will facilitate these every day interactions, allowing consumers to do day-to-day activities more conveniently and quickly, but also offering additional value – enabling users to share pictures or other small files between mobile phones, a digital camera, a PC, a handheld device, or even a TV – with the intuitive action of simply touching two devices together. Users may also download information like movie tickets, directions to a favorite restaurant, or a link to a Web site – the possibilities are truly endless.

By expanding the use of RFID with NFC, new opportunities for contactless payment, access control and security, mass transit and a wide range of new information sharing applications for consumer devices will be created. A number of product/application launches and pilot programs will kick off internationally in 2005.


Visit Texas Instruments RFid Systems on the web at www.tirfid.com.

NFCNews LogoNear Field Communications News and Insight
Explore more developments dealing with the implementation of Near Field Communications, a short-range wireless technology that promises to revolutionize contactless identification, payment, access, and more. Click to visit NFCNews[end] 

Singapore’s Immigration & Checkpoints Authority (ICA) plans to implement a mobile biometric screening device system to help its inland enforcement operations combat illegal immigrants.

As reported in the Straits Times and Today Online, the ICA is investing in MAVIS, the Mobile Automated Verification and Identification System. The handheld system can perform ID and fingerprint and facial recognition biometrics screening without having to bring a suspect into an office.

read more »

The Co-operative Food has started trialing contactless payments in its small shops and convenience stores in an effort to generate a better means for customers to pay for goods, according to Retail Week.

read more »

In ABI Research’s newest market study analysis, NXP Semiconductors has reportedly claimed the top spot in the contactless ticketing market with 74% of the market share.

read more »

VeriFone Systems announced that it will integrate the Isis Mobile Commerce Application into its current and future NFC-enabled point of sale products.

Through the delivery of new payment systems, NFC add-on devices and remote software upgrades, VeriFone will bring Isis-powered mobile contactless payments to hundreds of thousands of merchant locations across the U.S.

read more »

WaveMark, provider of RFID-based supply chain solutions for hospitals and medical device manufacturers, and University of Massachusetts Lowell announced a collaborative effort to bring a new RFID product to market.

read more »

Albron, an independent caterer in the Netherlands, will offer biometric- and contactless-based payments in its restaurants thanks to a newly signed agreement with pan-European payment processor Equens.

read more »

Subscribe to the Contactless News Library
Gain access to the largest collection of Auto-ID analysis on the Internet.