A Near-Field Communication chip (NFC chip or NFC chipset) is a silicon component or Integrated Circuit (IC) that can be used in different ways, depending on the targeted application.
When connected to an appropriate antenna, an NFC chip enables short-range, wireless communication between two devices. This provides an additional layer of security, as only devices within close proximity of each other can communicate via NFC.
For instance, the NFC technology can allow contactless communication between:
- A payment card and a payment terminal.
- Two electronic devices.
- A smartphone and a consumer product.
The NFC chips embedded in each component of the system make the wireless communication possible. For example, an NFC chip can be embedded in a banking card and a payment terminal, or in a passport, where it is used to store biometric data.