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What is RFID and How Does RFID Work?
Radio Frequency Identification (RFID) is one of the most versatile technologies today. Powering everything from hotel key cards and public transport passes to global supply chains and healthcare systems.
Despite its widespread adoption, many people still wonder what RFID actually is and how it works. In this guide, we’ll explore the origins, technology, and modern applications of RFID, and how it’s shaping the future of contactless systems for enterprise businesses.
What Is RFID?
RFID stands for Radio-Frequency Identification and refers to the use of radio waves to capture and transmit electronically stored data on a card, tag, or inlay.
At its core, an RFID system allows data to be exchanged wirelessly between a tag and a reader, instantly and securely. This makes it ideal for industries where identification, access, or tracking need to happen quickly and reliably.
An RFID system includes three main components:
RFID Tag – the part that holds the data, made up of a chip and antenna.
RFID Reader – a device that sends and receives radio waves to read the data.
Antenna – allows the two to communicate over a specific frequency.
The result is a contactless data exchange that can be used for everything from employee access and product authentication to travel and cashless payments.
Who Invented RFID?
While the concept of using radio waves for identification dates back to World War II, the first official patent for an RFID device was awarded to Charles Walton, an American inventor born in 1921.
Walton received ten patents for RFID-related devices, including his groundbreaking 1973 design for a “Portable Radio Frequency Emitting Identifier”, the first to officially include the acronym “RFID.” His work set the foundation for the global technology we rely on today, earning him the title “The Father of RFID.”
Walton passed away in 2011, but his innovation continues to define how businesses and consumers interact with the world through contactless systems.
How Do RFID Cards Work?
RFID technology has two key elements, the reader and the card (or tag) which communicate using radio frequency waves.
The Reader
An RFID reader contains both a transceiver and an antenna. It emits radio waves that energise the RFID card when it’s nearby. This process is called electromagnetic induction, it generates the power needed for the card’s chip to respond.
The Card
An RFID card contains a microchip and antenna, bonded together to form an integrated circuit. Once the reader energises it, the card transmits its stored data (such as a unique serial number) back to the reader, all in a matter of milliseconds.
A practical example of this is the Oyster card used on the London Underground. When you tap your card against a reader, an electromagnetic field transfers energy to the card’s chip, enabling data exchange. The reader then verifies your balance or ticket type and updates your journey information in seconds.
This same principle underpins most contactless access, payment, and authentication systems used across industries today.
RFID Frequencies and Types
RFID operates across three primary frequency ranges, each suited to different applications:
Low Frequency (LF) – 125–134 kHz
Used for animal tracking and short-range asset identification.High Frequency (HF) – 13.56 MHz
Common in RFID cards and contactless credentials, ideal for access control, ticketing, and ID.Ultra-High Frequency (UHF) – 860–960 MHz
Best for logistics, manufacturing, and long-range inventory tracking.
For most enterprise environments, HF RFID cards offer the ideal balance between performance, security, and compatibility.
RFID vs NFC: What’s the Difference?
Although RFID and NFC (Near Field Communication) use similar radio wave technology, they serve slightly different purposes.
RFID is used primarily for one-way data transmission, such as scanning a tag to identify an object or person.
NFC is a subset of HF RFID that supports two-way communication, allowing devices (like smartphones) to exchange data.
In short:
RFID = identification and tracking.
NFC = interaction and communication.
Both are essential to the contactless ecosystem, from RFID access cards to NFC-enabled business cards and smart credentials.
Learn more about their differences
Are RFID Cards Secure?
Yes, modern RFID cards use encrypted chips that make them highly secure.
However, like any wireless technology, older or low-cost RFID chips can be vulnerable if not properly encoded. Modern enterprise-grade cards use chips like NXP MIFARE DESFire or Infineon SLE to protect data using advanced encryption (3DES or AES).
For sensitive applications, such as payments, access control, or healthcare, Oomph works with these secure chipsets to ensure every product meets strict data protection standards.
RFID Cards, Tags, and Wearables — What’s Best?
Each format serves a different purpose:
RFID Cards – Ideal for access control, hospitality, and secure identification.
RFID Tags – Used for logistics, tracking, and inventory management.
RFID Wristbands and Wearables – Perfect for events, festivals, and cashless environments.
Choosing the right format depends on your use case, environment, and budget.
Applications of RFID Technology
RFID is now embedded across industries, improving security, speed, and traceability.
Access Control
Used in corporate offices, hotels, and healthcare environments for secure, frictionless entry.
Events and Hospitality
Drives contactless check-in, guest identification, and cashless payments at global venues.
Transport and Mobility
Enables seamless fare collection and smart ticketing across bus, rail, and metro networks.
Retail and Supply Chain
Provides real-time product visibility, improving stock accuracy and reducing waste.
Healthcare
Ensures traceability for medical equipment and pharmaceuticals.
Benefits of RFID Technology
RFID offers a wide range of advantages for businesses, including:
Speed and efficiency – instant data transfer and automated processes.
Durability – resistant to wear, dust, and moisture.
Scalability – easily deployed across multiple sites or systems.
Sustainability – with Pulper Zero®, RFID cards can now be fully recyclable.
The Future of RFID
RFID continues to evolve, combining with AI, IoT, and blockchain to deliver smarter systems that track and verify products across complex supply chains.
From digital product passports to sustainable contactless credentials, RFID technology is driving a future where security, traceability, and transparency go hand in hand.
Final Thoughts
At Oomph, we design bespoke RFID solutions that combine advanced technology, premium materials, and environmental responsibility. Whether you’re deploying RFID cards, tags, or wearables, we’ll help you deliver performance with purpose.