NFC allows contactless communication between devices within 10 cm of each other. It uses magnetic field induction to transfer data wirelessly. NFC is commonly used for contactless payments and data sharing by tapping two NFC-enabled phones together. The first NFC phone was released in 2006, and it is now used in many smartphones and IoT devices for applications like mobile payments, ticketing, and device pairing. While convenient, NFC has limitations including a short range and low data transfer speeds. It also poses privacy and security risks if sensitive data is intercepted.