Understanding these technologies is key to figuring out if and how you want to integrate them into your business, and whether this kind of system could keep your costs down and improve efficiency. These two wireless communication technologies are closely related. RFID (Radio Frequency Identification) and NFC (Near Field Communication) both use radio signals to read digital information stored on a small tag and are often used for tracking purposes.

   1. Both technologies use tags and readers for a contactless transfer of data

RFID and NFC are forms of contactless technology that use short-range, low power wireless links between two devices for transferring small amounts of data. Both NFC and RFID use special tags to store information – the tags are affixed to things like shelves in retail stores to keep track of inventory, or on a fleet of trucks to track their location. The tags contain a memory chip that stores data, and an antenna that allows this data to be accessed, or ‘read’. To read the data on an RFID tag you need a special RFID reader. NFC tags, on the other hand, can be read by any NFC-enabled smartphone. NFC tags can both send and receive information (two-way communication), whereas RFID tags can only send information.

Read more about NFC technologies here

   2. Operational Distance varies from a few centimeters to a hundred meters

Both RFID and NFC operate on the same 13.56 MHz frequency, but RFID tags can be read up to a distance of 100 metres, and NFC tags only up to about 10 centimetres. NFC’s lower range capacity should not be confused with lesser abilities than RFID; this close distance makes it an extremely secure way to transfer data – a simple tap of your device against a tag or another NFC-enabled phone is all it takes.

RFID is still more appropriate in some cases, for example in warehouse inventory and GPS location, but NFC works better in cases where proximity to the NFC tag is necessary – e.g. if a security guard is required to check certain spots around a building, then affixing these spots with NFC tags and requiring the guard to check in at each one will mean you can be certain the checks have been made.

    Read more about how NFC can help your construction business 

   3. The cost of implementing a system using this technology can vary

Since NFC tags can be read by almost any smartphone, the price of implementing the system is significantly lower.  Individual tags can cost as little as $0.50 each, for both RFID and NFC. The major saving is in the reader – a handheld RFID reader can cost up to $2,000, making the overall cost of implementing an NFC system cheaper if you and your employees are already using Android devices.

RFID NFC
Long distance Short distance
Tag + antenna Tag
Reader NFC-enabled mobile phone
One-way communication Two-way communication

NFC is the future of RFID technology, and it is relatively easy to integrate into your business. NFC and other RFID technologies are useful in a wide range of situations, and the benefits of understanding and implementing them include fewer human errors, improved productivity, clearer records of chains of custody, and closer control of assets.