- As more NFC tags are being incorporated into products, and smartphones are tapping tags more often, the industry has seen a high growth year.
- Key features have included early version of a new DPP-ready mobile app that enables compliance with European mandates coexisting with features like consumer engagement.
“Tap here.”
These two words have helped launch NFC technology into the status of a household term. Throughout the past 12 months though, the technology has been accomplishing more than payment transactions or access control.
Over 2024 the industry experienced several significant growth areas, noted Mike McCamon, executive director, NFC Forum resulting for not only technology innovations, but requirements from legislation related to safety, authentication and sustainability or circular economies. One of the key initiatives is the EU’s initiative Digital Product Passports (DPP) to encourage product circularity and transparency across industries, from food to consumer goods.
The past year saw hundreds of millions of products shipped with NFC tags embedded or attached to them. McCamon pointed out and they are being used for consumer engagement and other purposes well ahead of the DPP requirements.
The pressure is on, however, for brands and retailers, with the DPP initiative in planning for products bought, sold and used in the European Union. To ensure compliance, companies will need to provide access to products’ DPP information through a data carrier.
DPP Preparation Continues
“Already in use with many products, the technology is a great DPP data carrier candidate,” said McCamon. While there may be some growth in adoption thanks to the slim NFC chipset giving product designers aesthetic freedom for smaller products, the DPP will mainly lead to a diversification in NFC usage, he speculates.
That means products that were not NFC-enabled in the past, may be adopting the technology in the future. The EU’s DPP initiative will see brands and retailers optimize an existing, familiar technology for new aims.
“We expect to see significant growth in NFC being used by brands and retailers, as they recognize its ability to help them enhance traceability and create more circular economies,” said McCamon.
In fact, NFC is “market-ready” for conventional data-carrier use cases. Companies are waiting for further definition by other standards bodies on the cloud-based infrastructure and data models planned for DPP regulations. Once completed, many companies should be ready to deploy DPP linked NFC tags.
PoC of DPP-Ready Mobile App
With that in mind, NFC Forum demonstrated in October a Proof-of-Concept (PoC) Mobile Reader application for Android and iOS that can read on-product NFC (NDPP) data. The goal was to build a specification so that companies can leverage NFC technologies for two purposes simultaneously: DPP data, and other consumer engagement or inventory purposes.
“We expect most people will use NFC connectivity for multiple things, not just for digital passport,” McCamon said, so the specification is intended to enable that.
The app will enable DPP data to be stored on the tag along with information for brand or consumer-based purposes. The app enables data stored directly on the tag to be matched against information in the cloud. That feature provides fraud protection to ensure data hasn’t been changed, as well as a way to continue offering data even if a company’s cloud server is no longer there.
Dynamic Data
The specification is also intended to enable dynamic data—in other words, data that could be updated through the life of the product. An example could be the battery on a e-bike with a sensor connected to the NFC tag that tracks how many cycles the battery has operated in.
There are still many details to be defined with the DPP initiative, including when the regulatory acts become mandates, for which products. With that in mind, McCamon said, NFC Forum is seeking to stay ahead of the curve. “Now is the time to start working on these ideas … as opposed to waiting until the initiative details are finished.”
While the spec will not be published until mid 2025, the demo app is available on Google Play and the Apple store.
Multi-purpose Taps
Over the past year, the forum has been investigating methodology around multi-purpose taps. The Multi-Purpose Tap is an emerging concept that is expected to improve the contactless user experience by supporting several actions with a single tap.
This will deliver a new level of convenience, with users able to simultaneously make retail payments while at the same time accomplishing tasks like adding loyalty points and promotions. They can apply concessions and best fare pricing when purchasing travel tickets; or receive details on how a product can be recycled and reused when buying goods.
Charging Wirelessly
NFC wireless charging currently offers induction charging at 13.56MHz, up to one watt, with customized antenna sizes. “This makes NFC Wireless Charging particularly well-suited for small personal and wearable devices such as wireless earbuds, smart watches, digital styluses, and fitness trackers,” McCamon said.
NFC-based, wireless charging continues to grow in popularity among consumers: 74 percent of respondents to an NFC Forum survey said the ability to use their personal mobile device as a power bank through NFC wireless charging would positively impact their decision to purchase NFC-enabled accessories, such as smart watches or headphones.
Work is underway to investigate increasing the capabilities of the current NFC wireless charging specification up to three watts in the next few years, bringing wireless power and charging to new and smaller form factors, which would not only benefit current industrial designs but enable new markets or areas of innovation.
Sustainability Drives the Technology Forward
Based on the forum’s survey, McCamon added that “a nice surprise has been the increasing focus on sustainability for many consumers.” When asked what they would most like to see for future NFC innovations, 60 percent answered recycling or sustainability and 55 percent said additional product information, as benefits to the technology.
“The forum welcomes all organizations that wish to participate in our DPP initiatives and contribute towards our shared goal of a greener, more circular global economy,” McCamon said.
Consumer Electronics and Home Appliances
In the meantime, technology companies have continued to innovate. In 2024, Identiv served customers who had a rising interest in consumer electronics and smart home device applications. “Post-COVID, native NFC reading and writing capabilities made possible with modern smartphone devices have helped to facilitate adoption of the technology,” said Kirsten Newquist, Identiv’s CEO.
Identiv is helping companies explore solutions that leverage NFC in tandem with Bluetooth Low Energy (BLE) as well as hybrid systems that include RFID technology in the healthcare market.
“Pharma and medical device customers are coming to Identiv to explore how RFID and/or BLE can enable technological solutions that can enhance patient safety, ensure patients’ adherence to medication protocols, and increase productivity of their employees,” Newquist said.