RFID vs. NFC: Which is Right for Your Business?

RFID is the process by which electromagnetic fields are used to identify and track tags attached to objects. To uniquely identify items using radio waves, RFID requires, at a minimum, a tag, a reader and an antenna. RFID tags contain an antenna and a memory chip that stores data, and in order to see that data, you need an RFID reader.

You will most frequently encounter RFID in retail stores where RFID is used to track inventory. In fact, RFID technology's biggest area of use is in inventory management and asset tracking in retail stores and warehouses and shipping industries. RFID tags can be attached to items such as automobiles to track its progress through the production line as it is built.

In addition, RFID tags can be attached to vehicles, such as in an electronic toll collection system, to allow access to controlled roads or areas without having to stop the vehicle. Passive RFID tags, which do not have their own power source, have a read range from near contact up to 25 meters, making them ideal for toll roads and controlled access areas accessible by car. Active RFID tags contain their own power source, which boosts their broadcast ability to upwards of 100 meters.

Although RFID tags can be used for access control, more commonly your business or office is just using a Proximity ID or proximity card. Proximity cards are widely used in identification badges, so if your company building requires tight security measures where only employees can access the building, proximity cards are the way to go. Proximity cards need to be held near the reader to authenticate the badge. The range of a proximity card is very limited — two feet compared to an RFID range of 300 feet. 

NFC is best described as a subset of RFID. NFC devices operate at the same frequency as high frequency RFID readers and tags — 13.56 MHz. But unlike RFID devices and tags, NFC does not have a range from 25 meters to 100 meters. Instead, NFC takes advantage of the short read range limitations of its radio frequency. Because NFC devices must be in close proximity to each other, no more than a few centimeters apart, NFC has become the top choice for secure communication between consumer devices such as smartphones.

NFC enables peer-to-peer communication between devices because it acts as both a reader and a tag. NFC smartphones can share information just by tapping the devices together. Want to share a photo or your contact info? No need to text or break out a business card, simply bump your phones together. Want to pay for a purchase without digging out your wallet? No problem, tap your smartphone to a contactless payment port at the business of your choosing.

In business terms, NFC is ideal for businesses wanting to communicate and share information quickly between employees. NFC tags can boost staff communication and provide real-time updates in the fast-paced business world. NFC tags allow employees to check in at their current locations, record time spent on the clock and provide updated schedules.

For small businesses focused on customers, payments and wait times, NFC card readers might be the ideal solution. It creates faster and more efficient ways to get through the checkout line.

No matter whether you run a small business or a large corporation, there is a wireless communication technology that can assist you. For businesses that need assistance with time management, employee tracking, customer satisfaction and reduced wait times, NFC is probably the technology for you. For businesses that need assistance with inventory tracking and access management, RFID is most likely the way to go. Consider the needs of your organization, including the security features and range capabilities, before making a decision — both technologies offer a new and improved way of completing tasks. 

Thanks to various built-in security features like encryption protocols, tokenization and biometric authentication, NFC is generally considered secure. However, no technology is completely immune to risks. NFC mobile payments also rely on the security of the devices used, including the mobile device and the NFC reader., as well as the security of the network source by which data will be transmitted.

Keeping your device's software updated, using strong passwords or biometric security, and enabling device security features are crucial steps to ensure the safety of your customer's mobile payments. Here are some considerations when safeguarding mobile payment data:

Choose the Right Payment Processor: Select a reputable payment processor that offers secure NFC payment solutions. Ensure that they comply with industry security standards and regulations.

Update Device Security: To ensure that the devices used for NFC transactions are secure keep them updated with the latest security patches and use strong passwords or biometric authentication to prevent unauthorized access.

Prioritize Employee Training: Train your staff to handle NFC transactions securely. They should be aware of potential risks and best practices, such as checking for suspicious behavior or unusual transactions.

Upgrade Network Security: Use secure Wi-Fi networks and ensure that your network is protected with encryption and firewalls to prevent unauthorized access.

Schedule Regular Audits: Periodically review your payment systems and processes to identify any vulnerabilities or areas for improvement. This could include conducting security audits or penetration testing.

While NFC mobile payments offer security benefits for businesses, it's important to remain vigilant and take proactive measures to ensure the safety of transactions and customer data. By selecting trustworthy payment processors, implementing security best practices, and staying informed about the latest security trends, small businesses can offer convenient and secure NFC payment options to their customers.

No matter whether you run a small business or a large corporation, there is a wireless communication technology that can assist you. For businesses that need assistance with time management, employee tracking, customer satisfaction and reduced wait times, NFC is probably the technology for you. For businesses that need assistance with inventory tracking and access management, RFID is most likely the way to go. Consider the needs of your organization, including the security features and range capabilities, before making a decision — both technologies offer a new and improved way of completing tasks. 

Read range can become a roadblock when using both RFID and NFC tags. Because NFC technology requires close contact it will not be sufficient for applications requiring long-distance tracking. On the other hand, the read range of RFID tags can vary based on the frequency and type of tag used.  Active tags can be read at longer distances (sometimes up to 300 meters away), while passive tags are typically read within about a dozen meters. In some cases, active RFID technology can send signals to Wi-Fi access points, so that tags can be located. This allows RFID tags to be monitored remotely.

Data transfer speed and Data capacity can also be a challenge. NFC is typically not well-suited for transferring large files and transfer speeds are a lot slower than when using Bluetooth or WiFi.

Finally, one of the more common pain points are that other radio frequencies might interfere with RFID or NFC. Interference can also come from weather and physical obstructions.

The integration of RFID with the Internet of Things (IoT) enhances its capabilities. The ability to connect RFID data with other sensors and devices for comprehensive data analysis and decision-making amplifies its utility in industries such as agriculture, healthcare, and logistics.

NFC has the potential to play a significant role in smart city initiatives, enabling citizens to interact with various public services, transportation systems, and infrastructure using their devices. As smart city projects gain traction, NFC's convenience and security will likely find broader applications.

Interoperability and standardization could emerge as a significant challenge, requiring collaboration among stakeholders to ensure seamless communication between various devices and systems. Amid these challenges, there lies immense potential for businesses to leverage RFID and NFC in novel ways, driving operational efficiency, enhancing customer engagement, and unlocking new revenue streams.