Q. Consider the following statements:
Statement-I: Near Field Communication (NFC) technology used in ‘UPI Tap and Pay’ has a limited range.
Statement-II: Near Field Communication (NFC) technology ensures secure transaction initiation and prevents accidental payments.
Which one of the following is correct in respect of the above statements?
Explanation –
Statements 1 and 2 are correct. Near Field Communication (NFC) technology is a short-range wireless technology. It typically requires a distance of 4 cm or less to initiate a connection. It allows NFC-enabled devices to communicate with each other and transfer information quickly and easily with a single touch — whether to pay bills, exchange business cards, download coupons or share a document.
NFC transmits data through electromagnetic radio fields to enable communication between two devices.
Near Field Communication (NFC) technology ensures secure transaction initiation. It uses cryptographic credit card processing to generate a new authentication code for each transaction without revealing the raw card details. This adds an extra layer of security to prevent accidental payments.
Hence, both Statement-I and Statement-II are correct. However, Statement-II is not the correct explanation for Statement-I. The limited range of NFC technology does not directly relate to its ability to ensure secure transaction initiation and prevent accidental payments. NFC technology incorporates other security features, such as data encryption and secure element technology, which help prevent fraud and protect user information.
Source: Forum IAS
