The new two-factor authentication technology offers additional security during transactions, including online banking and digital signatures, via an NFC-enabled mobile device and a contactless smartcard.
According to scientists, the new technology works after a user holds the contactless smartcard adjacent to the NFC reader of the mobile device and after entering their PIN, a one-time code is generated by the card and sent to the server via the mobile device.
Based on encryption between the smartcard and the server, the new technology uses the National Institute of Standards & Technology (NIST) Advanced Encryption Standard (AES) scheme.
A new research from ABI Research reveals that number of NFC devices operational will surpass 500 million by 2014, while about one billion mobile phone users will use their devices for carrying out banking transactions by 2017.
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