A form of very short range wireless communications is needed for many applications.
NFC is a set of protocols that enable two devices to establish communication by bringing them within 4 cm of each other.
It is distinct from other wireless technologies:
Bluetooth:
Bluetooth has been designed to transfer data over much greater distances, whereas NFC is designed to be close proximity.
Wi-Fi/IEEE 802.11:
Wi-Fi is designed for local area networks, and is not a short range peer to peer technology.
RFID (Radio-Frequency Identification):
RFID is a much broader technology, whereas NFC is a specific case which is defined by standards enabling it to be interoperable.
Each full NFC device can work in three modes:
NFC card emulation,
which enables NFC-enabled devices to act like smart cards, allowing users to perform transactions like payment
NFC reader/writer,
which enables NFC-enabled devices to read information stored on inexpensive NFC tags embedded in labels
NFC peer-to-peer,
which enables two NFC-enabled devices to communicate with each other to exchange information