This informative whitepaper about Near-Field Communication examines the background, delves into the three modes of operation (read/writer, peer-to-peer, and card emulation) that will allow for the integration of NFC, and explores its various uses. More importantly, NFC security concerns are discussed, as well as the benefits offered by the technology.

1. NFC: NEAR-FIELD COMMUNICATIONS
A Look Into the (Near) Future of NFC
NFC, HUH? read information decessor. NFC operates at high
frequencies (13.56 MHz) to allow
Imagine if your smartphone could Sony and Philips first developed the exchange of data between
do everything from make con- NFC in 2002. As an extension of enabled devices. Communication
tactless payments with a tap of RFID, NFC is completely compat- begins when two enabled devices
your phone to become your hotel ible with existing structures, tags, are in extremely close proximity
or house key. Away with all your and contactless smart cards. to each other (4 - 10cm) or if two
CVS, Giant, Safeway, and Staples It does, however, dramatically enabled devices physically touch
loyalty cards—let your smart- differ from its pre- one another. In essence, this
phone take their place. Does it technology brings connectivity
seem like something from a Hol- to the physical world.
lywood movie? Well, reality says
otherwise. A not-so new technol- The Near Field Communica-
ogy, near field communication, tion Forum was created in
is on its way to simplifying our 2004 and seeks to advance
lives even more. NFC technology by develop-
ing specifications, educating
NFC is a short-range wireless the market about NFC, and
connectivity technology that ensuring interoperability among
builds upon Radio Frequency services and devices. The
Identification technology. forum’s 140 members consist
What exactly is RFID? of application developers, fi-
nancial services institutions,
• It is capable of accepting manufacturers, and more.
and transmitting infor-
mation beyond just a few NFC PREDICTIONS
meters; it is less restric-
tive than NFC NFC-enabled mobile devices
• It uses radio frequency stand to benefit most from the
waves that act as pas- type of technology NFC provides.
sive, active, or a combi- Factors such as chip, handset, and
nation of both tag manufacturers have slowed
• It does not need a its adoption to this point, but
direct line of sight to Android devices that contain NFC
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2. chips are already on the market play. The initiator is the active guided museum tour with NFC
and the iPhone 5 is expected to device, which contains power tags placed throughout an exhibit.
have built-in NFC capabilities as sources and is usually a mobile
well. device that contains an NFC read- 2. Card Emulation Mode
er/writer. The target is the passive The Card Emulation Mode in-
In comparison to countries abroad, device, which does not have any volves the NFC device acting as a
very few devices equipped with available power sources. The pas- NFC tag, similar to the traditional
NFC exist in the U.S.; these few sive device contains an NFC tag, contactless smart card. When you
include Nokia, Samsung, LG, and which is basically a printed circuit make a payment, for example,
Motorola devices. According to integrating stored data and an you touch your device to a NFC
the latest research by Merca- antenna which can be read by an reader, which receives or reads
tor Advisory Group, 116 million NFC-enabled device. the necessary data.
smartphones equipped with NFC
will ship this year. Between 2012 The NFC Forum developed three 3. Peer-to-Peer Mode
and 2015, the shipment number modes of operation that will The P2P Mode is when two de-
should rise to 510 million. allow for the integration of the vices exchange data. Suppose
technology into our daily lives. business owners John and Jane
NFC devices can easily switch meet for the first time at a mobile
IN A NUTSHELL: from one mode of operation to strategy conference and they
HOW NFC WORKS another. These modes are: want to keep in touch. With NFC
there’s no need to carry around
NFC is often called an “application 1. Reader/Writer Mode and exchange business cards;
enabler.” It opens various roads of The Reader/Writer Mode is usu- instead, it would only take a tap
communication and transactions ally for the exchange of content of their phones to trade their
in a quick, user-friendly way. This information. For instance, if you contact information.
not only makes electronic services come across a movie poster with
or other interactions accessible an NFC tag, you can download NFC
to more people, but it also tran- any available data (such as a USES/SCENARIOS
scends age and technical ability. movie trailer, a discount coupon,
or reviews) by reading the tag
So how does it work? Think of NFC with your NFC-enabled device. NFC-like technology is not a new
performing a handshake between Another great example is a self- commodity. Think about the ID
two devices that are close togeth- badges or key fobs that open
doors. Remember when Master-
er. The device that first extends
or initiates the handshake is the
116 MILLION Card (PayPass) and ExxonMobil
“initiator” and tries to establish SMARTPHONES (Speedpass) implemented their
“pay on the go” mini kiosks? These
a connection. Once connected,
the two devices exchange data EQUIPPED are very common examples, but
there are countless more which
through NFC directly or through
other wireless technologies such
WITH NFC WILL breed convenience, synchroniza-
as Bluetooth and WiFi. BE SHIPPED tion, productivity, communica-
tion, and the rapid exchange of
Let’s take this a step further and THIS YEAR. information—all in real-time.
look at the roles the two devices
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3. Below are just a few scenarios that Pairing NFC and consumer riders looking for information on
illustrate the limitless possibilities electronics works similarly but transit schedules.
offered by NFC. depends on the overall size of the
transfer data. For instance, data Most public transportation re-
1. Contactless Payments that is reasonably small (up to a quires fare, which comes in the
The most common example is kilobyte) may solely use NFC to form of a paper ticket, plastic/
contactless payments: using a transmit the data, but other situa- metal token, or an electronic
mobile device as a digital wal- tions may call for NFC to establish card. The use of NFC technology
let. Say you’re on the way to another wireless connection removes the burden of carrying
the office, but you want to stop method (such as Bluetooth or cash, loose coins, and/or credit
for your morning cup of coffee. WiFi) to carry the information for cards. Commuters will profit from
With just a swipe or tap of your sharing. being able to monitor real-time
mobile device, you can be in and transit information and schedules
out quickly, eliminating the need Suppose you have photos on via signs that are embedded with
to carry cash or your credit card. your mobile device or digital NFC-readable information.
In terms of contactless payments, camera that you want to print. In
NFC technology can also include that case, you’ll touch your device
the extension of redeemable against the NFC-enabled printer.
coupons, promotions, and the Because of the size of the files, ENTERPRISE ADVANTAGES &
use of loyalty cards. At the time BENEFITS OFFERED BY NFC
of purchase, customers can swipe In essence, this
mobile phones to unlock a variety
of discounts. technology
NFC presents numerous benefits
2. The Sharing of Content
brings connec- to both mobile users and busi-
We do everything with our mobile tivity to the nesses. In general, it is a versatile
technology that can find a niche
devices—take pictures, record
videos, take notes, read, write/ physical world. in virtually every industry or situ-
ation. Convenience and simplicity
edit documents, build contacts,
of use are obvious advantages.
download/listen to music…all you’ll connect via Bluetooth to
The compatibility between NFC
of which we love to share. NFC transmit the digital photos from
and existing RFID structures, tags,
technology promotes quick and the device to the printer.
and contactless smart cards is
easy sharing between two mobile
another plus because it elimi-
devices, as well as with other 3. Ticketing & Transportation
nates the need to create and/or
consumer electronics such as The transportation industry is
develop an entirely new system.
cameras, TVs, and printers. Most one of the industries set to reap
impressively, trading informa- the benefits of using NFC. Ac-
Given the wide range of pos-
tion only requires a quick touch cording to the American Public
sibilities for developers and the
between devices. In the office, Transportation Association,
number of devices that will soon
you can streamline business and nearly 14 million people depend
come pre-equipped with NFC
revolutionize the way you swap on buses, trains, light rails, sub-
chips, it has become a very at-
business cards, spreadsheets, and ways, cabs, and trolleys each day.
tractive technology. Market and
documents. That’s a substantial number of
consumer outreach efforts, as
fare transactions, not to mention
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4. well as the opportunity to gather modification, eavesdropping, and As the technology matures and
valuable market research, are just “man-in-the-middle” attacks. De- NFC-enabled smartphones
the beginning. For instance, a pending on the mode (passive or hit the market, companies are
customer in a mall scans a shirt’s active) of the devices in question, actively researching, seeking,
NFC tag with their mobile device the attack may or may not be a and developing ways to combat
to gather more information on success. threats. It is imperative to craft
the product (such as availability safe and secure ways to transmit
in another store location, size in- Threat: Data modification, in information.
formation, or perhaps the lowest short, is when an attacker intends
price). Once the customer receives for a valid, but manipulated, mes-
the requested product data, the sage to be sent to the receiving CONCLUSION
customer’s interest in the product phone.
can then be made known to the Solution: Establish a secure
company, which helps them un- channel or rely on the NFC device Like all new technologies, security
derstand the customer’s interests. to continuously check the radio concerns still remain. Neverthe-
This leads to a deeper knowledge frequency field while transmitting less, the benefits of NFC mobile
of the consumer and could en- information and to discontinue services are immeasurable.
hance targeted marketing (e.g. the transmission when a threat is NFC-enabled devices can change
tailored promotions, loyalty point detected. the way we make transactions,
incentives, and coupons). exchange information, and send
Threat: Eavesdropping is a more and receive data.
This also works in reverse. Using common threat because devices
NFC, consumers can effortlessly communicate through radio fre- In 2011, the big names in mobile
share information about com- quency waves. An attacker, using technology plan to integrate
panies—sales, promotions, and an antenna, can literally grab and NFC with their new devices.
product data—that can result in decode the transmitted signals. Both Android and Blackberry
an increase in foot traffic, sales, Solution: Establish a secure already have or will have NFC-
and referrals. channel. supported models; the media
predicts that Apple will follow suit
TACKLING SECURITY Threat: Albeit a rarity, the “man- in its next generation of iPhones.
ISSUES in-the-middle” attack involves The next few years will see more
two parties that want to start a NFC support in mobile devices.
The development of technology conversation but that instead get It’ll be a matter of time before
and ease of sharing raise security duped by an attacker into a third commerce, transportation, and
concerns. As NFC continues to party conversation. other institutions develop the
develop, more security risks are Solution: Use active-passive infrastructure to jump into the
coming to light. Common at- communication mode. game.
tacks and threats include data
Contact PointAbout at 202.391.0347, info@pointabout.com
or visit www.pointabout.com for more information.