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Explanation NFC (Near Field Communication) is a wireless communication technology that is commonly used for contactless payments, mobile payments, and other mobile transactions. It allows two devices to communicate with each other when they are placed in close proximity. Contactless payments commonly use NFC (Near Field Communication). NFC is a wireless communication technology that allows two devices to communicate with each other when they are in close proximity. Contactless payments use NFC to enable customers to make payments by simply tapping their contactless card or mobile device on a payment terminal.