Near Field Communications, or NFC, is a kind of wireless technology that allows devices to exchange small amounts of data across distances of up to eight inches. Philips currently uses NFC in its Mifare contactless smartcard and Sony has its own FeliCa contactless NFC smartcard.
Devices with in-built NFC could facilitate electronic payments, simply by holding the devices in close proximity to each other. Users with multiple NFC-enabled devices, such as laptops, handheld computers, digital cameras, or mobile phones, can store personal payment details on each machine and all NFC-enabled devices are able to interact, allowing for quick and easy exchanges of money between individuals.
"Both companies are in the semiconductor and consumer electronics industry," a spokesperson for Philips told ElectricNews.Net. "We believe that we can get more support for the standard and develop more applications if we work together."
NFC could form an important part of wireless computing, complementing Bluetooth and 802.11. If users wish to send an image or a small amount of moderately secure data, they would use Bluetooth. Conversely, users who wish to send larger amounts of data would have the option to use 802.11. However, NFC is generally regarded as more secure than Bluetooth and 802.11, making it more suitable for the transfer of money. It also uses less energy and operates on a much lower frequency than the other wireless protocols.
Philips already makes combination cards for Bluetooth and 801.11, which is used for wireless data exchange between laptops and PDAs. The new standard would mean releasing consumer devices that will include NFC, Bluetooth and 802.11. "The basic technology is there today, we're not talking about a big stretch," the spokesperson said. "You can expect to see the first products released in 2004."
Philips and Sony are also considering the security issues of NFC, as wireless security is one of the issues which has held back wireless networking. "Whichever standard you use you're going to have different security issues," said the spokesperson. "If NFC is built into a phone, then the phone's security may be sufficient security, but if you need a higher level of security then you can build in biometric security, such as fingerprinting."
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