Near Field Communication (NFC) is most commonly used for contactless payments, as evidenced by recent survey results from ABI Research and the NFC Forum. This close proximity-based technology allows consumers to conveniently tap-and-pay for goods and services via a smartphone or smartwatch. While contactless payments will remain the biggest opportunity for NFC, new use cases are emerging. Between the NFC Forum’s Technical Roadmap and recent advancements in embedded Secure Element (eSE) technology, NFC applications are expanding to broader industries. Here are five other ways NFC can be used.
1. NFC in Automotive
NFC technology is transforming automotive applications through secure digital keys. It enables drivers to unlock cars using an NFC-enabled key fob and provides temporary vehicle access to a friend or valet driver. Proximity limits and the inclusion of a Secure Element (SE) to protect cryptographic material make this a far more secure option compared to traditional electronic key fobs.
The app-based ecosystem is also progressing—for example, Android Galaxy users who own a Volvo or Polestar in select regions recently received support for NFC-based car key sharing via the Samsung Wallet. A notable benefit of NFC cards in automotive is that the technology can operate passively, with no need for a power source. As a result, NFC-supported car keys have enhanced reliability and longevity, and are a popular redundancy option to mitigate the inconvenience of damaged or power-drained devices.
There is also potential for NFC cards to augment in-vehicle infotainment, but automakers remain slow to adopt such applications, due in part to diverse security needs for devices.
55 million
NFC-enabled key fobs will ship annually by 2029, up from 11.7 million shipments in 2024. (Source: ABI Research)
2. NFC in Access Control
NFC’s integration with digital car keys was, in many ways, a testing ground for its broader use in access control. For example, NFC tags have a strong outlook for being used in smart home applications—particularly for the security conscious.
Instead of using power-hungry Internet of Things (IoT) devices prone to cyberattacks, homeowners can unlock doors using an NFC-based lock, which is low-power and does not connect to the Internet. The same concept can be applied to commercial buildings, preventing unauthorized entry into a facility.
While NFC fobs have been popular for years, the option to digitally distribute access through mobile wallets significantly streamlines the logistics for commercial deployments. Increased adoption of NFC in the automotive industry should spread awareness of and build user confidence in NFC tags for broader access control domains in the coming years—particularly in the consumer space, where threats are personal and familiarity is limited.
3. NFC in Digital Identity
Another non-payment use for NFC is digital identity. Millions of people already use Apple, Samsung, and Google wallets for contactless payments. But beyond payments, mobile wallets also serve as a familiar central platform for NFC-based digital credentials. Consumers prefer consolidating multiple ticketing passes and credentials into a single wallet for maximum convenience, and trust has already been built in these mainstream wallets.
In addition to contactless payment, NFC-enabled phones support electronic Identification (eID), Digital Travel Credentials (DTCs), and access control for facilities like hotels, gyms, or offices. NFC cards simplify identity verification and access, while reducing the reliance on physical cards that can easily be lost or stolen. They also typically offer better security than other digital solutions.
34%
of NFC-enabled smartphone users will use a mobile national ID by 2029, and 32% will use a mobile driver’s license. (Source: ABI Research)
4. NFC in Retail
Retail loyalty programs gain efficiency with the use of NFC, overcoming the limitations of physical cards. Loyalty cards are frequently misplaced, damaged, or underutilized. In other cases, customers forget that they even have a loyalty card. With the introduction of multi-purpose tap to NFC, mobile wallet transactions are able to automatically apply discounts, earn points, and collect anonymized data with a single tap.
This automation ensures seamless offer activation and convenient participation for consumers, which is particularly beneficial in competitive low-margin sectors like supermarkets. The data collected through the transaction can provide rich customer insights, enabling the development of customized marketing promotions. This is highly beneficial, as tailored offers are a top-three reason why consumers consider purchasing from a brand.
5. NFC in Supply Chain
Digital Product Passports (DPPs) leverage NFC technology to provide secure, transparent asset tracking throughout the supply chain journey. NFC tags store logistical data such as product origins and sustainability—the collection of which governments are increasingly mandating.
NFC-based DPPs are only accessible through close-range scanning, which is a security advantage over Radio Frequency Identity (RFID) tags. As RFID allows scanning at long distance, there is a risk of identification and tracking via distinctive product passport signatures.
NFC DPP adoption is growing in industries like apparel, construction & buildings, Electric Vehicles (EVs), and electronics, with a platform ecosystem evolving quickly to enable widespread use.
Conclusion
NFC use cases extends beyond payments, delivering secure and efficient solutions in automotive, identity management, access control, retail, and supply chain tracking. Using tags, cards, and smartphone integrations, NFC enhances data protection, convenience, and transparency. For businesses, its application enhances the customer experience, improves brand stickiness, and builds trust among customers.
ABI Research’s Trusted Devices Solutions analyst team is assessing these NFC uses to identify emerging opportunities for technology providers and end users. Our body of research expands upon these findings, shares demand forecasts for NFC applications, examines the role of embedded security, and analyzes the approach that heavy-hitters like Apple, NXP, Thales, Infineon, and Famoco take toward non-payment NFC solutions.