RFID (Radio Frequency Identification) is like a wireless barcode that identifies unique items using radio waves. A reader communicates with a tag, which holds a digital identification number in a microchip. Adding a reader to a mobile phone enables easy two-way end-to-end information flow over cellular technology.
RFID uses radio waves to identify individual items at its specific location. The most common method is to store a serial number that identifies a product on a microchip that is attached to an antenna (the chip and the antenna together are called a tag). The Nokia RFID Solution uses passive, battery-less tags. The antenna enables the chip to transfer the identification information to a reader. The reader converts the radio waves returned from the RFID tag into a form that can then be passed on via cellular technology to PCs and to back-end systems. 13.56 MHz is globally the most widely used frequency.
RFID as a technology has been available for several decades. In recent years tag prices have been falling and currently they are at levels that make large-scale mobile application implementations feasible. Nokia was the world's first GSM phone manufacturer to launch an RFID reader enabled GSM phone enhancement in Cebit 2004.