Nfc implementation

How it works

NFC works similarly to Bluetooth, but when you connect to another NFC device, you do not need to spend a lot of time on identification, the connection is established almost instantly (in tenths of a second).

NFC is a short-range wireless technology that operates at a frequency of 13.56 MHz, used for industrial, medical, and scientific purposes. N FC is a logical continuation of RFID technology, and its main difference is a limited range. While the reading distance of RFID tags can reach several hundred meters, NFC tags are available within 10 centimeters.

https://www.youtube.com/watch?v=x81RFQwiTKs

NFC always has an initiator and a target. The initiator actively generates an RF field that can affect the passive target. NFC communication between two devices is also possible, provided that both devices are turned on. Due to its compact size and low power consumption, NFC can be used in small gadgets[1].

For data transmission, NFC uses coding with different modulation ratio depending on the data rate. At the same time, NFC devices are able to simultaneously receive and transmit data. Thus, they can monitor the RF field and detect inconsistencies if the received signal does not match the transmitted one.

Use cases

Main article:NFC contactless payments

The main advantages of NFC technology are the speed of payment for goods and services, security and convenience. The technology allows to significantly reduce customer service time:

  • in stores,
  • in a cafe,
  • at gas stations,
  • by public transport
  • in parking lots,
  • at cultural and sporting events, that is, in those places where a large number of people are served at the same time and instant payment authorization is required, and the purchase amount is relatively small.

In this mode, the smartphone acts as a scanner for NFC tags containing various additional information. Recently, NFC tags have begun to replace barcodes. They can be found on food in supermarkets and, by bringing an NFC-enabled device, find out the expiration date and composition of the product. NFC tags are also used to display interactive advertising information.

NFC regulation in Russia

2019

The Ministry of Communications and Mass Media published in the spring of 2015 on its website an order regulating the use of NFC short-range communication devices built into smartphones and tablet computers in Russia[2].

The document of the Ministry of Telecom and Mass Communications defines various characteristics of the operation of NFC devices:

  • modulation parameters,
  • encoding,
  • transmission speeds,
  • the RF structure of their interface, as well as
  • initialization schemes and
  • Conditions required to control conflict situations during initialization for both passive and active NFC modes.

The requirements set by the order of the Ministry of Telecom and Mass Communications for NFC communications in Russia correspond to the already established practice of its application.

Announcing the emergence of the NFC regulatory framework, the Ministry recalled that devices supporting this protocol allow the implementation of “various services”, for example, using a mobile phone as a transport card, means of payment, etc.

Global market for NFC payments

Experts from MarketsandMarkets analytical company made a forecast in the summer of 2014 that the NFC market will increase to $16.25 billion by 2022. The average annual growth will be about 8.83%. The study was conducted in the following market areas: products (integrated circuits, cable lugs, readers, auxiliary devices), applications (payments, transportation, booking, data exchange, service, access control, etc.) and by geography of manufacturers.

According to MarketsandMarkets experts, the NFC market will flourish in the near future. N FC is a very dynamic market and holds great potential in many industry verticals. Technological advances, thanks to continuous R&D, make this market one of the most significant segments in the current industrial scenario.

NFC products are developed and constantly developed, new technologies allow to increase the life cycle of products and systems and their reliability. Among the features of NFC technologies, experts note a high level of interaction with other NFC-enabled devices, characteristics that can withstand harsh environmental conditions and a longer service life.

The competitive environment in the NFC market presents a very interesting picture, where a large number of small players are gradually becoming a force to be reckoned with. The market is witnessing large-scale examples of cooperation and partnership in the direction of improving the quality of products and deliveries among first-tier players around the world.

The MarketsandMarkets report also looks at market trends, drivers and challenges. The experts analyzed the NFC market of various regions: America (North America and South America), Europe (Great Britain, Germany, France, Italy and other European countries), Asia-Pacific region (China, Japan, Korea, India and other Asia-Pacific countries) and rest of the world (Middle East, Australia and Africa).

The Americas is the largest geographic center in this list in terms of NFC market value, the largest in the US among other regions. The Asia-Pacific region has been identified as the fastest growing region and leader in NFC technology devices. Europe also has a very promising market including Germany and the UK. The N FC market of other countries is also gradually developing and there are certain trends towards its growth.

The Gartner Technology Maturity Cycle is a graphical representation of the penetration, adoption, and social impact of specific technologies. In 2016, NFC payments are at the peak of expectations.

2015

NFC-enabled POS terminals

The development of infrastructure also contributes to the popularity of contactless payments in Russia. According to Gemalto, the number of NFC-enabled POS terminals in our country reached 235,000 in 2016, which is about a quarter of the entire base of devices.

The development of the market and the increase in the penetration of contactless payments are highly correlated with the available infrastructure. Thus, according to Berg Insight, in 2014 the number of installed NFC-enabled POS terminals in the world increased by 71% and amounted to 21.4 million devices, and by 2019 their number will be 75 million, which will correspond to an average annual growth rate of 28 ,4 %.

Shipments of NFC-ready POS-terminals in 2011 in the world doubled and reached 2.5 million. in 2017, 43.4 million units will be delivered. These figures correspond to the penetration of these devices from 8% in 2011 to 53% in 2017. The highest penetration rates are expected in North America (86%) and Europe (78%), and in other regions – about 38%.

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