NFC is the next big advancement in radio technology. NFC stands for Near-Field Communication and thanks to it, you can now use your Mobile Phone as a credit card, a wireless data transfer device and get information about something over the internet.
A NFC based mobile-payment system is currently being used on a trial basis in the United States, Germany, Finland, the Netherlands and a few other countries to perform regular banking, buying tickets for your journey or a movie show and interacting with NFC enabled interactive posters.
Here is a video which explains NFC (Near-Field Communication) in very simple terms:
How does NFC differ from RFID?
RFID tags present in contactless credit cards send information only when asked whereas a NFC chip can also receive information in addition to sending it. Thus your NFC enabled device can have a two-way conversation with the payment station and instead of simply sending your name and credit card number when the data is requested, the chip can ask the payment gateway to wait for a secure code until the owner enters it. This is however not possible with RFID.
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