Google Pay has recently launched a new feature in India, ‘Tap to pay for UPI’, in collaboration with Pine Labs. The feature makes use of Near Field Communication (NFC) technology.

What is Near Field Communication (NFC)?

• NFC is a short-range wireless connectivity technology that allows NFC-enabled devices to communicate with each other and transfer information quickly and easily with a single touch.
• It makes possible to pay bills, exchange business cards, download coupons, or share a document.

How does it work?

• NFC transmits data through electromagnetic radio fields, to enable communication between two devices. Both devices must contain NFC chips, as transactions take place within a very short distance.
• NFC-enabled devices must be either physically touching or within a few centimetres from each other for data transfer to occur.

When did NFC tech start?

• In 2004, consumer electronics companies, Nokia, Philips and Sony together formed the NFC Forum, which outlined the architecture for NFC technology to create powerful new consumer-driven products.
• Nokia released the first NFC-enabled phone in 2007.

How will this technology work with the recently launched feature, ‘Tap to pay for UPI’?

• Google Pay has been the first among UPI apps to bring the Tap to Pay feature working on POS terminals.
• It will allow users with UPI accounts configured on Google Pay to make payments just by tapping their NFC-enabled Android smartphones on any Pine Labs Android POS terminal.
• Once users tap their phones on the POS terminal, it will automatically open the Google pay app with the payment amount pre-filled.
• Users can then verify the amount and merchant name and authenticate the payment, using their UPI PIN.
• The process is much faster compared to scanning a QR code or entering the UPI-linked mobile number which has been the conventional way till now.

What are the other applications of NFC technology?

• NFC tech has a wide range of applications besides driving payment services.
• It is used in contactless banking cards to perform money transactions or to generate contact-less tickets for public transport.
• Contactless cards and readers use NFC in several applications from securing networks and buildings to monitoring inventory and sales, preventing auto theft, keeping tabs on library books,
• NFC is behind the cards that we wave over card readers in subway turnstiles and on buses to check tickets.
• It is present in speakers, household appliances, and other electronic devices that we monitor and control through our smartphones.
• With just a touch, NFC can also set up WiFi and Bluetooth devices in our homes, investopedia noted.
• It also has an application in healthcare, to monitor patient stats through NFC-enabled wristbands.
• NFC is used in wireless charging too.

How safe is this technology?

• NFC technology is designed for an operation between devices within a few centimetres from each other.
• This makes it difficult for attackers to record the communication between the devices compared to other wireless technologies which have a working distance of several metres, according to the NFC forum, a non-profit industry association.
• The user of the NFC-enabled device determines by the touch gesture which entity the NFC communication should take place with, making it more difficult for the attacker to get connected.
• The security level of the NFC communication is by default higher compared to other wireless communication protocols.

Where does it stand in comparison to other wireless technologies?

• There are other wireless technologies available which are replacing cable-based connections.
• The IrDa technology is a short range (a few metres) connection based on the exchange of data over infrared light where the two communication devices must be positioned within a line of sight.
• Today, this technology is mainly used for remote control devices. For larger data communication with computer devices this technology was replaced by Bluetooth or WiFi connections.
• However, for these technologies’ receiver devices need their own power supply due to the larger working distance.
• Therefore, the receiving device cannot be powered by the radiofrequency (RF) field like in NFC, the NFC forum highlighted.
• Another consequence of the larger working distance is the need for the user to configure their device and to pair them together for communication.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now