RFID vs NFC for Mobile Payment

August 10, 2021

RFID vs NFC for Mobile Payment

When it comes to mobile payment technology, RFID (Radio Frequency Identification) and NFC (Near Field Communication) are two of the most widely used wireless communication technologies. Both technologies use radio waves to transmit data but differ in terms of the frequency range and distance that they can transmit data.

RFID Technology

RFID technology uses radio waves to read and capture information stored on a tag, which can be attached to an object or embedded within it. The radio waves emitted by the RFID reader allow it to detect and read the information on the tag. RFID technology is widely used in applications such as asset tracking, inventory management, and access control.

NFC Technology

NFC technology, on the other hand, is a type of RFID technology that uses a higher frequency range and has a shorter range of communication. NFC is what enables contactless payments, like those made through mobile wallets such as Google Wallet or Apple Pay. It also has a range of other applications including keycard access, transportation tickets, and data transfer between devices.

Comparison

When it comes to mobile payments, NFC has become the most popular and widely-used technology. According to a 2018 report by Juniper Research, NFC mobile payments are expected to reach $130 billion in global value by 2022, compared to $12.5 billion for RFID-based payments.

In terms of security, both technologies are considered secure as information is transmitted via an encrypted data transfer process. However, NFC is generally considered to be more secure than RFID since it requires devices to be in close proximity to each other (<10cm) for the transaction to occur.

One of the downsides of RFID technology is its longer range of communication which makes it more susceptible to hacking and interception by cybercriminals. In contrast, NFC's shorter range of communication makes it less vulnerable to such threats as it requires devices to be in close proximity to each other.

Conclusion

Both RFID and NFC technologies have their pros and cons, and which one is better for mobile payment ultimately depends on the use case. While RFID is better suited for applications such as asset tracking and inventory management, NFC is the preferred technology for mobile payments due to its security features and widespread adoption.


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