
What is NFC?
NFC stands for Near Field Communications. It uses radio signals, much like wifi or bluetooth to transmit data. However, unlike those technologies it only sends data a few inches, and typically only when passed in front of the receiver. The range on the device will really limit sniffing or skimming attempts on stealing information, plus the information is not transmitted in clear text, so even if it were intercepted it would still have to be decrypted.
Why NFC?
Businesses are already implementing NFC into their stores to accept payments to make transactions quicker. This is particularly useful for places that are very busy, and make a lot of small transactions such as gas stations. I’m sure most people have been waiting in line at a gas station to pick up a snack, or a drink to wait for an older person to shake their credit card down a card reader and then shake out a signature (no offense old people, I’ll be there too one day).
NFC could speed up transactions to the point where you could possibly pick up and item, start walking out the door and continue walking to your car and leave. I have heard that RFIDs were to be used for something similar in stores like Wal-Mart possibly in the future, but the RFIDs can really only find out what you have in your cart or in your possession, and wouldn’t seem to work so well with transmitting payment information.
The future of NFC is more than just payments
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The future of NFC is ORDERING AND PAYMENTS
1: Retail purchases and payments
NFC can transmit data in short range. Right now, the process for using NFC works like this at a gas station.
- Go in pick up a snack
- Hand snack to cashier to scan
- Use NFC to pay for total
- Be on your way
If you look at that, you think, wow there are only four steps. It can be even simpler. Imagine if stores started using RFIDs to scan items, and then used NFC to pay for them. In this sense, your order is you just picking out what you like. So now our new process for payments is:
- Go in pick up snack
- Walk out of store while holding up your phone to a receiver
A two step process for purchasing items that were sitting on a shelf. It is a lot more complex than that for the company and actually processing the information, but your customer is in and out and most importantly, HAPPY.
2: Service based ordering and payments – the real game changer!
As mentioned earlier, RFIDs can be used with retail items to track what people pick up and want to buy. But, what about stores where you have to order items such as at a restaurant. Here is where the future of NFC get really interesting.
Currently, the process of eating at a restaurant goes as following:
- Go in the business
- Wait in line or at a table for someone to take your order
- Have someone take your order
- Wait for your food to be delivered
- Receive food
- Pay for your food and/or eat it there, In some cases you have to wait in line to pay
- Leave the business
As you can see with the process, there are two and potentially three steps where you wait. With the use of NFC for ordering, you could cut down your waiting processes to at most ONE. By modifying the traditional use of NFC, or combining it with other transmission technologies and software customized for either the credit card company or business, you could potentially order and pay for your food instantly.
A new NFC process where a company can take your order and payment at once would be:
- Go in the business
- Prepare your order on your mobile applicaiton
- Scan NFC
- Get table or waiting spot
- Wait for food
- Get food and leave
The new ordering process is a six step process, but it is much faster. Imagine walking into a McDonald’s and going up to an NFC receiver and scanning your phone and McDonald’s immediately starts making the order you selected on your phone as soon as your NFC payment is processed. You no longer have to wait in line to order, just to receive your food.
When will this happen?
Soon. NFC is already a technology that is trying to be implemented in more and more mobile phones. Many companies are simply waiting for the technology to become more mature before they actually start implementing it.
RFIDs and NFC combination for retail may not happen for another decade or more, but it is definitely something that is being worked on. Wal-Mart has been working with RFIDs for years and hopefully they will innovate and adopt that technology for totaling retail cost soon, so that NFC can be used in tandem to increase retail checkout speed dramatically.
On the other hand, I believe that NFC for ordering, particularly with large restaurants such as McDonald’s could happen in as soon as 2-3 years. It is already possible for mobile applications to transmit order data via various transmission media, but I don’t think the industry has seen the potential yet for the adoption of a tandem system with NFC. Once NFC and ordering become combined, the longest wait you will have at a restaurant will be waiting for the store to process your order.