Near field communication, or NFC, allows for simplified transactions, data exchange, and connections with a touch. It is anticipated to become a widely used system for making payments by smartphone in the United States. Many smartphones currently on the market already contain embedded NFC chips that can send encrypted data a short distance ("near field") to a reader located, for instance, next to a retail cash register. Shoppers who have their credit card information stored in their NFC smartphones can pay for purchases by waving their smartphones near or tapping them on the reader, rather than bothering with the actual credit card. Co-invented by NXP Semiconductors and Sony in 2002, NFC technology is being added to a growing number of mobile handsets to enable mobile payments, as well as many other applications.
The Near Field Communication Forum (NFC Forum) formed in 2004 promotes sharing, pairing, and transactions between NFC devices and develops and certifies device compliance with NFC standards. A smartphone or tablet with an NFC chip could make a credit card payment or serve as keycard or ID card. NFC devices can read NFC tags on a museum or retail display to get more information or an audio or video presentation. NFC can share a contact, photo, song, application, or video or pair Bluetooth devices. The 140 NFC Forum members include LG, Nokia, Huawei, HTC, Motorola, NEC, RIM, Samsung, Sony Ericsson, Toshiba, AT&T, Sprint, Rogers, SK, Google, Microsoft, PayPal, Visa, Mastercard, American Express, Intel, TI, Qualcomm, and NXP. For more information, go here.
In other words No wallets!