Near Field Communication (NFC) is a type of technology that allows digital devices to communicate and transfer data securely when held in close proximity. You’ve most likely used NFC technology to pay with your card or smartphone, scan your passport at the airport, or even to share photos or other data with friends. 

NFC has a variety of use cases, such as identity verification, contactless payments, and transferring data between devices. And thanks to the EU’s passage of major regulation allowing the private sector to read eIDs with NFC, the technology is only going to become more widely used for identity verification and document authentication across Europe. 

How Does NFC Technology Work? 

NFC technology uses electromagnetic fields to transfer data between devices that are close together — typically four to ten centimetres apart. It operates at an extremely high frequency of 13.56 MHz, meaning that data is exchanged within milliseconds. 

In more technical terms, NFC operates through electromagnetic induction. This means that an active device (such as a smartphone) creates a magnetic field using a small internal coil.  

You can think of NFC as a combination of a wireless charger and a telephone combined into one device. Wireless chargers operate with an electromagnetic field that powers your smartphone or tablet, but in this case, the two devices can also communicate with each other. 

Active vs. Passive Communication 

NFC technology operates in two distinct ways: active communication and passive communication. In active mode, both devices generate their unique electromagnetic fields and take turns transmitting and receiving data. You might have tried this by bringing your smartphone near a computer or other smartphone to share data or passwords. In passive mode, the electromagnetic field is generated by just one of the two devices, with the active device “activating” the passive one.  

Passive mode is how NFC is used for identity verification. These days, NFC chips are embedded in passports, national ID cards, and residence permits. These operate in passive mode and are only activated when another NFC device with its own magnetic field activates them. Then, the chips transmit encrypted biometric and personal data back to the reader within milliseconds.  

The passive mode of NFC chips are part of what makes them so secure. Because they’re only activated through other NFC devices, they don’t require batteries and can’t be tampered with. This means that data can be securely stored for years — and can only be read when deliberately scanned at very close range.  

Common uses of NFC technology 

NFC technology is being steadily integrated into our daily lives — from streamlined identity verification to instant digital payments. In this section, we’ll dive into some of the most common ways NFC is used.  

Identity Verification and Authentication 

NFC has transformed the identity verification landscape. Here are some of the main ways the technology is being used to enable secure, remote verification: 

• Remote customer onboarding: Thanks to NFC, customer can now verify their identity from anywhere. NFC authentication allows them to tap their ID to their smartphone, which reads encrypted data directly from the ID's chip. This process verifies that the document is authentic — and can match a live photo to the image stored on the chip. 

• EU Digital Identity (EUDI) Wallet setup: Users can set up their EU Digital Identity Wallet by tapping their ID to their smartphone. This process extracts verified credentials like name, date of birth, and nationality. 

• Airport security: NFC-enabled e-Gates at airports read data from government-issued ID chips to confirm the identity of travellers.  

• Fraud prevention: Document and biometric verification with NFC can detect cloned, tampered with, or counterfeit documents in seconds. 

Contactless Payments  

These days, you rarely have to have your physical wallet on you to make in-store transactions.  NFC is used to make contactless payments via: 

• Digital wallets: Smart wallets such as Apple Pay, Google Pay, and Samsung Pay use NFC for instant payments. (Tip: Learn more about digital wallets here.) 

• Tap-to-pay cards: NFC-enabled credit and debit cards facilitate quick payments in stores or at other payment terminals.  

NFC Tags and Smart Applications  

Beyond payments and identity verification, here are some other ways you might see NFC being used: 

• NFC tags: Ever notice small stickers embedded in posters, business cards, or products? These NFC tags enable the instant sharing of information when tapped with a smartphone.  

• NFC rings: This technology allows for secure access control to enter buildings, vehicles, or to log on to computers. 

• Public transportation: NFC allows public transit riders to pay their fares by tapping their smartphone to a card reader on the entry carousel.  

Is NFC secure? 

NFC is considered highly secure. For starters, the technology requires devices to be within roughly four to ten centimetres of one another to make a data transfer, reducing the risk of eavesdropping. Plus, all data transmitted via NFC is encrypted, so even if someone intercepts the signal, they won't be able to decode the information.  

For contactless payments, NFC uses tokenization, replacing your real card details with randomly generated numbers. Additionally, each transaction generates unique encryption keys that can’t be reused. Sensitive payment details are stored in a dedicated chip separate from the device's main processor, adding another layer of protection.  

When it comes to identity verification, NFC security extends even further. NFC chips embedded government-issued ID cards use advanced cryptographic controls, which both prove the document is authentic and that it hasn’t been tampered with. Extended Access Control (EAC) restricts access to sensitive biometric data, ensuring only authorized readers with proper credentials can access information like fingerprints or facial biometrics.  

What are the advantages of NFC for identity verification? 

By now the many advantages of NFC may be obvious. But with so many different use cases, it’s worth honing in on the specific advantages for identity verification: 

• Security and fraud prevention: NFC authentication reads encrypted data directly from government-issued ID chips, meaning it can detect if the document is fake or has been tampered with. It also uses biometric matching that confirms the user’s identity against the chip-stored data. 

• Regulatory compliance: NFC-based identity verification meets eIDAS requirements and complies with GDPR.  

• Operational efficiency: Whether you’re a bank or a government entity, NFC speeds up customer onboarding, reducing manual verification and, therefore, operational costs.  

• A competitive advantage: By adopting NFC technology aligned with the EU Digital Identity Wallet rollout, businesses can streamline their verification infrastructure and get a leg up on competitors. 

FAQs  

Q: Can NFC be used for more than just payments? 

Yes! NFC technology is used in many other situations, from chips in passports and ID cards to data sharing and home automation. Businesses in particular use NFC to onboard customers quickly and securely.  

Q: What's the difference between EMV and NFC? 

EMV is a payment security standard for chip cards, while NFC is a wireless communication technology. EMV uses NFC technology for wireless transmission of its documents, but NFC has broader applications beyond payments.  

Q: How does an NFC chip in a passport work? 

NFC chips embedded in modern passports store encrypted biographic and biometric data, including your photo, fingerprints, and personal information. When you tap your ID to an NFC-enabled device, the chip uses passive NFC to transmit encrypted data to the other device for verification. Because NFC only works within short range and includes anti-cloning cryptographic protections, passport data can’t be read or tampered with without detection.