What Is NFC Technology And How Does It Relate To Identity Verification?
NFC (Near-field communication) has seen a resurgence during the pandemic. Businesses are using this technology to improve security and reduce fraud, as well as streamline registries and enhance other applications.
Globally, more than 150 countries currently integrate NFC technology with identity cards and passports with chips. Europe, Australia, most of South America, and North America fully use this, while many other countries are slowly adopting the technology.
NFC technology is creating more opportunities in the identity verification industry. But how effective is it? How can you make it work for your business? This article will explore the pros and cons of NFC based identity verification, whether NFC is right for your business, and the possible challenges you might face – especially as an early adopter.
What is NFC technology?
NFC, also known as “near field communication” technology, is a technology that allows the connection between devices wirelessly, without contact. This connection occurs over short distances, which helps prevent accidental transactions and fraud.
Between the objects, one is a chip (NFC integrated circuit) and the other object is capable of reading the chip, allowing communication between them. Those objects include payment cards and readers, passports, ID cards, and NFC integrated smartphones.
Common, day-to-day uses of NFC technology include:
- Access to digital content (for example, when you use your mobile to read a “smart” poster in a store)
- Mobile payments with applications, such as Google Pay, Samsung Pay or Apple Pay
- Quick pairing devices, such as Bluetooth speakers and mobile phones
- Smart home device control (for example, to turn lights on and off)
⚠️ In addition to the home, NFC technology is being implemented in numerous industries, including the identity verification industry in NFC-based identity verification chips.
NFC vs Bluetooth vs OCR
Let’s compare how NFC works against two other examples of wireless protocols: Bluetooth and Optical Character Recognition (OCR):
Compared to Bluetooth, NFC offers more benefits. Bluetooth devices must be paired with each other, unlike NFC, which only need to be touched to establish a connection. In addition, NFC also requires less power than Bluetooth, due to its short transmission range.
Optical Character Recognition (OCR)
When compared to OCR, NFC is faster and more secure when reading data. Also, it does not involve the use of a camera to extract the information.
On the other hand, the OCR can lead to errors if or it is a well-developed technology (we will tell you more here).
What is NFC-based identity verification?
The verification of NFC-based identity involves the use of this technology to validate the identity of customers. For this, the documentation to be verified contains RFID (radio frequency identification) chips that store personal information such as your name, date of birth, etc. of the users.
NFC identity-based verification is being integrated into multiple industries, such as:
- Saas: it can be used to optimize the registration of new clients in all types of businesses
- Mobility : to approve the lease of remote vehicles
- Hotel sector : with the aim of building self-service environments that allow guests to check-in remotely
- Hospitals: can be used to detect false documents to improve data security and protect confidential patient information
- Education and business: also has a place in any type of entity, it can be used to monitor the attendance of students, staff, etc., as well as prevent unauthorized people from accessing
Advantages of NFC-based identity verification
Identity verification NFC is already incorporated into our daily lives and business tasks; and it gives us many benefits, such as:
Security and fraud prevention
NFC-based identity verification comes with multiple security measures to stop hackers and scammers. Additionally, it may contain biometric information, which adds an additional layer of protection.
Not only does it authenticate identity in real time, but it also reduces the chances that companies will sign up illegitimate people, which can harm your business.
⚠️ Each country has its own security certificate, which can be validated for counterfeiting and tampering.
Quick and easy verification
NFC technology fully automates the verification process and does not depend on people to validate cases. This makes it easy to grow / scale with the needs of businesses.
The process is also completed and updated in real time, allowing for a quick and easy customer experience.
Improve customer registration experience and conversion rates
NFC technology provides a very comfortable remote registration experience, as it does not require additional scans. With a smooth onboarding process, customer confidence is also improved.
In addition, companies can also use NFC technology to create personalized content for their customers.
You only need NFC-enabled documents and technology
Identity verification does not require multiple staff members at various points in the process to authenticate someone’s identity. Unlike other wireless technologies, setup takes just one second (one touch or roughly). All you need is an NFC-enabled smartphone (the vast majority have) and an NFC-enabled identity document, such as a passport or driver’s license.
Challenges with NFC-based identity verification
Although it is very secure, like all technologies too, NFC has some loopholes that cybercriminals can exploit, such as infecting devices with viruses.
On the other hand, many customers find it difficult to justify its price and, due to its relative novelty, the lack of information about it.
NFC will be a fundamental part of remote identity verification processes. This is because in-person transactions are rapidly decreasing, so we need to implement technologies like this one, which can digitize processes comfortably and automatically.
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