NFC stands for Near-Field Communication. It is a technology that allows devices to communicate with each other by being within close proximity but not needing to touch.
NFC is found in most modern smartphones and credit cards, which enable the use of ‘pay wave’ or ‘pay later’ when you go to a store. The chip communicates with a reader and then understands how to process the signal depending on what its purpose is. Data can also be transferred in this process. In the example of using ‘pay wave’ at a store, your phone communicates the card ID or another identifier and maps your card to the payment terminal, which then understands how to process and charge that card.