Near field communication (NFC) is a set of standards for smartphones and similar devices to establish radio communication with each other by touching them together or bringing them into close proximity, usually no more than a few centimetres. Present and anticipated applications include contactless transactions, data exchange, and simplified setup of more complex communications such as WIFI. Communication is also possible between an NFC device and an unpowered NFC chip, called a “tag”.
NFC is a subset of RFID that limits the range of communication to within 10 centimetres or 4 inches. RFID has a wide range of uses while NFC is usually used in cases where increased security is needed such as for payment methods.