What Are NFC Readers?
NFC readers (also called NFC tags) are what make it possible for you to use a digital ID card at work or a smart lock on your front door. Both read NFC signals by inductive coupling—the reader device runs an electric current through a coil, which induces a similar current into the tag to send data back.
Payments
NFC technology allows customers and merchants to make secure payments by tapping a mobile device (usually a smartphone) against an NFC reader. The devices exchange encrypted information, such as the payment amount and merchant name, which makes it impossible for eavesdroppers to glean your personal data. The encrypted transaction uses public-key cryptography to generate a unique code for each transaction. Even if the device is stolen, your information is protected because the card’s three-digit code and bank account number are never transmitted.
NFC transactions are lightning-fast compared to other payment options. They are more secure than swipe or chip cards, as they require an active connection to transmit the data packets. In addition, the NFC readers used for payments are more powerful than Bluetooth readers and able to transfer data at higher speeds.
NFC is an ideal solution for retail, restaurants and professional service providers that accept credit cards. Your credit card processing provider should be able to tell you if your current point of sale terminals have NFC capabilities or if you need to upgrade. If you don’t accept credit cards, you can still use NFC for other services, like using your smartphone as a digital ID badge or storing boarding passes on your phone. These services are popular with consumers, and they can help you create a more positive brand image.
Transit Fare Cards
Many transit agencies use contactless cards to allow passengers to skip purchasing a paper ticket at the station and speed up their boarding times. These cards, sometimes called smart cards, have an unpowered chip that communicates with the onboard fare collection system or turnstile machine to deduct value from a trip. They only need to be waved over the reader before a passenger enters the vehicle or exits the gate.
Contactless cards, such as the OPUS card, can also be used to pay for other services like taxis and meals. NFC technology uses short bursts of electromagnetic energy to transmit data packets to and from the card. These packets contain a string of plain text (depending on the application, this might be an ID number or a payment transaction); the NFC device receives this data and performs the requested action.
There are several NFC readers available for transit NFC Readers fare payment systems, including the ACR122U, a rugged device that can be mounted on a pole or wall for optimal reading angle. This reader has multiple ports for additional attachments and a display screen to confirm the read transaction results.
As a transit agency considers upgrading its fare payment system, it can use a conventional approach to planning, conducting a cost analysis, and procuring new or upgraded media. The TCRP report 32: Multipurpose Transit Payment Media is an excellent resource that provides a detailed description of different types of fare payment media and their implementation.
Digital IDs
NFC Readers can detect the presence of an NFC tag and decode its information using a method called Manchester coding. This converts the electromagnetic current into binary values (zeros and ones), which then get transmitted as human-readable text.
This is how TSA readers will be able to verify Apple digital IDs when they’re introduced. This means that you won’t need to show your real ID at the airport. You can just tap your phone against the reader, which is a bit like scanning a photo ID with an NFC chip in it.
When it comes to ID verification, NFC-enabled chips are a game-changer. They’re much more secure than a printed bar code and can’t be faked or tampered with. They also support biometric authentication for additional confirmation of a user’s identity. This allows KYC programs to be much faster and more accurate than traditional methods.
Regula’s NFC verification uses this technology to read ePassports and other ID documents with embedded RFID chips. It then cross-matches the data from the document against the data in the NFC chip. This checks against international registries for validation and identifies whether the document has been altered. It’s a vital step in an effective ID verification process and helps prevent fraudsters from making it past initial onboarding. This can save businesses from a lot of headaches down the road.
Access Control
NFC readers can communicate with NFC-enabled devices—whether cards, smartphones, or wearables—to authenticate users and grant smart card access to controlled spaces. These readers, also called terminals, come in many forms, including standalone units and integrated NFC reader modules in intercom panels.
When an NFC-enabled device is tapped against a reader, the tag—which may be embedded in an access card or worn as a badge, for example—gets energized by electromagnetic induction. The NFC reader then transmits the information encoded on the tag to a server. That server confirms the user’s credentials, and if everything checks out, it grants the user access to a secured area.
People are less likely to forget or misplace their mobile phones than their access cards, so tapping a smartphone against an NFC reader can result in faster check-out times and more accurate time and attendance data. For instance, building staff could be granted access to their office during working hours only.
NFC tags can be placed on manufacturing products and parts to record real-time production status, location, or inventory data. This information is then retrieved by NFC scanners in maintenance and repair operations. For example, a technician can scan an NFC-enabled part to instantly see its maintenance history, instruction manuals, specifications, and other critical details. This dramatically reduces time and errors and improves efficiency. NFC technology also offers significant value in supply chain management, facilitating the tracking and traceability of raw materials and finished products.