HOW DOES NFC WORK?
At its core, all NFC is doing is identifying us, and our bank account, to a computer. The technology is simple. It's a short-range, low power wireless link evolved from radio-frequency identification (RFID) tech that can transfer small amounts of data between two devices held a few centimeters from each other.
Unlike Bluetooth, no pairing code is needed, and because it's very low power, no battery in the device being read. By tapping your phone on a contactless payment terminal in a shop, train station or coffee shop is able to identify your account (and even your personal preferences, shopping habits and even your most frequently travelled route home) and takes payment through an app on your phone.
Passive NFC 'tags' on posters, in shops and on trains could contain a web address, a discount voucher, a map or a bus timetable that passers-by could touch their phones on to receive – or to instantly pay for absolutely anything.
"The SIM card in your mobile phone is a smart card identifying your account to the network," says John Elliott, Head of Public Sector at Consult Hyperion, who's worked on the Oyster Card. "On NFC phones, the SIM is being extended to act as the Secure Element that can hold other apps such as payment cards."