In today’s digital era, online businesses and financial institutions are embracing contactless technology for their business operations. Long gone are the days when there was a requirement of physical presence for customer onboarding or financial payments. The invention of NFC or Near Field Communication has opened myriad opportunities for businesses through wireless data transfer with a single touch.
NFC is the ultimate connectivity and makes smart devices even smarter. Along with the variety of benefits for businesses, NFC technology provides the seamless onboarding of customers through the identity verification of digital IDs. In this blog, we will dig deep into the benefits of NFC technology and how it opened possibilities for the identity verification industry.
How did NFCTechnology Emerge?
NFC or Near Field Communication is RFID technology and works wirelessly. It works by bringing close two compatible devices and tapping them with each other to transfer the data wirelessly. In 2004, NFC technology was adopted by Nokia, Sony, and Philips to further advance its development, but it existed even long before that. In 2006, Nokia introduced the first phone ever to provide NFC technology through phones.
According to the myth, NFC technology was first used during World War II. However, the technology is based on Radio Frequency Identification technology, which was discovered in 1983 by Charles Walton. Ever since its integration into smartphone devices, the technology has taken a new turn. It has paved the way for contactless payments through a single tap of a phone, and now it is opening new gateways to secure the world with seamless NFC identification solutions.
How NFC-based Verification Works?
NFC technology allows compatible devices to extract data stored on microchips. The digital world is now embedding a chip called NFC tag in identity documents as an enhanced security measure. The tag on the ID card contains important data of the end-user including their personally identifiable information such as their name, date of birth, address, etc. Through a simple tap of the NFC-enabled device against the ID card, the data within the chips can be extracted and verified and this is how the NFC verifications solution works.
NFC biometric verification is a highly reliable technology that can assist businesses in verifying their customers seamlessly. It is an all-in-one solution that allows businesses to conveniently onboard customers. It is a safer and quicker method of verifying the identity and provides business entities with an added layer of protection.
Let us discuss in detail the types of industries that can benefit from NFC digital verification.
How Various Industries can Benefit from NFC Verification?
Like we have already discussed, the NFC-based identity verification process can benefit many industries. It not only helps them in fighting fraud, but it also helps them in saving time and enhancing their customer experience through swift customer onboarding.
The medical sector has long been a target of medical identity theft. The highly accurate process of identity verification through NFC-enabled devices can help the sector to avoid identity fraud. The healthcare sector can use the technology for data security and halt fraudsters from getting illegal access to important data. The NFC-based identity verification also helps to detect fake or doctored identity documents to ensure the identity of patients.
Students have been known to fool their educational institute to cheat on a test or trick the attendance marking into bunking the class. NFC technology ensures the attendance of the students as well as ensure their identity to know that no impersonator is trying to enter the building under false pretence.
Hotels and Inns
Fraudsters use stolen identity cards to stay in the hotels and avoid being traced by the police or law enforcement authorities. Hotels are known to be used by criminals to operate for their illicit activities or even to launder their illegitimate funds. This is why it is necessary for hotels to ensure their residents’ identity. With NFC identity verification, they can accurately and timelessly verify their clients while retaining satisfied customers.
Banks and Financial Institutions
A safe and secure solution to identify the fraudsters? Who would need such a solution more than a business that deals with money? Banks and financial institutions have always been the main target of the criminals to either steal money or launder money. This has led the global regulatory bodies to ensure legitimacy in the system through KYC/AML framework. The framework requires the industry to authenticate its clients before dealing with them. NFC identity verification is the perfect solution for such an industry as it will simplify the customer onboarding process while ensuring the identity of the customer accurately.