NFC is a short-range wireless technology, typically requiring a distance of 4cm or less to initiate a connection between two endpoints.
NFC enabled devices can communicate with each other by touching them together or bringing them into close proximity. Some anticipated applications include contactless financial transactions, data exchange, and simplified setup of more complex communications such as Wi-Fi or Bluetooth.
NFC-enabled devices may act as electronic identity documents and keycards used for authenticating a person. Communication is also possible between an NFC device and an unpowered NFC chip, called "NFC tag"