NFC is a short-range, high-frequency wireless communication technology that allows devices to communicate over a distance of roughly 10 cm.
The interface of a smartcard and a reader are combined into a single device via NFC, an update to the current proximity card standard (RFID). Users may wirelessly pay their bills, transmit material between digital devices, and even use their phone as an electronic trip ticket on public transportation using the existing contactless infrastructure.
The quicker set-up time is a key benefit of NFC over Bluetooth. The connection between two NFC devices is made instantly (in less than a 1/10 second) rather than requiring laborious setups to recognise Bluetooth devices.
Because of its shorter range, NFC offers more security than Bluetooth and is appropriate for busy spaces where it could otherwise be difficult to associate a signal with the transmitting physical device (and, by extension, its user).
When one of the devices is not powered by a battery, NFC can still function (e.g. on a phone that may be turned off, a contactless smart credit card, etc.).