Near field Communication (NFC) is a short-range high frequency wireless communication technology which provides simple, intuitive and secure communication between electronic devices. The technology is a simple extension of the ISO/IEC 14443 contactless card standard (RFID). NFC incorporates both read & write functions into a single device. An NFC device can communicate with both existing ISO/IEC 14443 smartcards and readers, as well as with other NFC devices. This capability of backward compatibility makes the adoption of NFC easier by just a simple upgrade of existing smart card infrastructure. NFC is primarily aimed at usage in mobile phones. NFC has a secure authentication procedure and anti-collision mechanisms that prevent a third party from hacking the link. The short (10 cm) read distance adds to the security making the technology secure for payment exchanges. Incorporation of NFC in mobile phones allows two types of mobile payments and exchange modes: Proximity Payments & Transactions Used for transaction between NFC mobile phones and the reader. NFC mobile device behaves like a bundle of existing contactless card (financial card, ID card, transport card, membership card, security card etc.). NFC has significant advantages in terms of speed of transaction as it is estimated that it is around 8-9 seconds faster than card payments and transactions. Peer-to-Peer Payments & Data Exchange By simply bring the two mobile phones close information can be transferred like exchange business cards and reading of product information from RFID chips on posters & magazines. Like ISO/IEC 14443, NFC communicates via magnetic field induction, where two loop antennas are located within each other's near field, effectively forming an air-core transformer. It operates within the globally available and unlicensed radio frequency ISM band of 13.56 MHz, with a bandwidth of almost 2 MHz and supports data rates: 106, 212, 424 or 848kbit/s. NFC has two communication modes: Passive Communication Mode The Initiator device provides a carrier field and the target device answers by modulating existing field. In this mode, the Target device may draw its operating power from the Initiator-provided electromagnetic field, thus making the Target device a transponder. Active Communication Mode Both Initiator and Target device communicate by alternately generating their own field. A device deactivates its RF field while it is waiting for data. In this Near Field Communication (NFC) has changed the technological environment for the mobile communication and mobile payments. The technology has proven its potential to lead as the mobile payments market in the future by enabling a completely new segment of mobile applications and creating exciting business opportunities.