What Is RFID? How it Works, and Examples

Summary/TL;DR:

RFID technology is a type of software that collects and stores data. The data transmission happens through radio signals. The process is quick, precise and very dependable. It is commonly used in transportation, education, healthcare, etc.

Introduction

Radio Frequency Identification (RFID) is a versatile wireless technology. It is used to scan a code and identify or locate an object. Regular barcodes and scanners require individual, contact scanning. However, RFID is scanned using radio waves. This allows for bulk and quick scanning. RFID is fast becoming a popular choice among businesses that require scanning and tracking of objects, vehicles, etc.

RFID technology typically consists of three parts - a scanning antenna, a transceiver (the reader), and a transponder (the tag). It is quietly, yet impressively, becoming the backbone of modern automation. Take a look at this article to learn more about this technology, how it works and where it is most commonly seen.

What is RFID?

The RFID full form is Radio Frequency Identification. It is a radio wave technology used to identify and track objects. It is widely used in toll booths, passports, factories and supermarkets. It is becoming increasingly popular as it helps save time and effort. It doesn't require a line-of-sight to work, unlike a standard barcode. This hastens the process and makes it accurate as well.

How is RFID different from a barcode or QR code?

Look at this table to understand the main differences:

What really happens when you scan an RFID tag?

The RFID reader sends a radio signal. The RFID tag catches the signal through its antenna. The stored data is transmitted to the reader. The reader sends the collected data to the software system. The entire process happens in under a second.

The speed and accuracy with which the RFID technology works make it an invaluable asset to the modern world. This is precisely why the technology is extensively used.

Where is RFID used in everyday life?

Here are some places where the RFID technology is regularly used:

1. Toll booths

The most common usage of RFID tags is seen in toll collection systems. Vehicles have RFID FASTags on them. The tags are scanned on the move, and the transaction is completed automatically.

2. Education

The RFID technology is widely used in the education system, mainly for attendance and tracking. Additionally, it is used to store and use student and staff data effortlessly. It is also used in libraries for quick scanning and data consolidation when borrowing and returning books.

3. Contactless debit and credit cards

When you tap your debit or credit card to make a payment, you use the RFID technology. The radio signals send the data to your bank, and the transaction is instantly completed.

4. Event wristbands

RFID is actively used in event wristbands. It is used for attendee tracking and quick payments. The tags are often integrated with various activities at the events. You can use a photo booth and make social media posts, etc., using the tag. At some larger events, the tag also works as an e-key for lockers and hotel rooms.

5. Corporate logistics

RFID is also used in corporate organisations. Many large companies, such as Generali Central, use this technology to quicken their operation and management processes.

Is RFID technology safe?

Generally speaking, the RFID technology is very safe, since it uses encryption and authentication. However, a data breach is possible, though often preventable. This is minimal, though, as all the personal data collected is securely stored in a database. No data is stored on the RFID tags.

Hence, overall, the technology is safe. It works to assist organisations to quickly and safely collect data, track inventory and smooth operations.

What is the connection between RFID and car insurance?

RFID is used in various sectors. Motor insurance is one such prominent sector. Here are some ways in which RFID and motor insurance connect:

1. Risk management

The car insurance provider tracks the vehicle through the RFID technology. The insurer understands where the vehicle is being parked and whether it is vulnerable to theft or damage. It can also track the movement of the vehicle. This helps ascertain whether the vehicle is being used within its declared geographical limits.

2. Automation and data accuracy

Claim settlement becomes easier and faster. The RFID records important information like premium payments, coverage limit, inclusions and exclusions, add-on covers and so on. The claim is paid out quickly due to quicker verification.

3. Reduction of manual intervention

Manual intervention is minimised. This leads to error-free data consolidation, reduced administrative cost and quicker transactions within the car insurance company.

4. Opportunity for PAYD

An RFID tag tracks how much the vehicle travels, how it is driven, traffic rule compliance, etc. It thus becomes very easy for car insurance providers to offer Pay As You Drive insurance plans, making car insurance affordable. This is a huge benefit that RFID has brought to car insurance online.