What is RFID and How Does It Work?

Radio Frequency Identification, or RFID, is one of those technologies that quietly keeps everything moving. It’s used in hotel key cards, public transport passes, contactless checkout systems, warehouse logistics and beyond. Most of us interact with it daily without ever thinking about what’s happening behind the scenes. Even though it’s everywhere, RFID can still feel mysterious. So, let’s find out what it is, where it came from and why so many industries rely on it.

RFID: What Does it Mean and How Does it Work?

RFID stands for Radio-Frequency Identification. It uses radio waves to transfer data stored on a tag, card or inlay so information can be captured wirelessly in a fast, secure way. That might mean opening a hotel room door, confirming access to a building or tracking a product through a busy warehouse.

Every RFID setup involves three key parts working together. The tag contains a tiny microchip and antenna that store the data. A reader sends and receives radio signals, and the antenna allows both sides to communicate over a defined frequency. Together, they allow data to be exchanged instantly without physical contact. This simple foundation is why RFID is so well-suited to identification, access control and automated tracking. If you’d like to see where RFID cards fit into this process, explore our RFID cards page.

A Brief History

Although ideas around radio-based identification surfaced during the 1940s, the first official patent wasn’t filed until 1973 by American inventor Charles Walton. His “Portable Radio Frequency Emitting Identifier” set the foundation for RFID as we know it today. Walton went on to receive multiple patents and is now widely credited as the father of RFID.

How RFID Cards Work

RFID relies on electromagnetic induction. When a card comes near a reader, the reader’s radio waves energise the card’s antenna. That tiny burst of energy powers the microchip, which sends stored information, (often just a unique ID) back to the reader. A simple example is London’s Oyster card. When tapped against the reader, the chip is briefly powered so the system can check balance, confirm access and update journey data on the spot. The same principle applies across thousands of access and payment networks globally. You can explore real applications on our use cases page.

Types of RFID Frequencies

Although RFID always operates wirelessly, not all systems use the same frequency.
Low-frequency (LF) systems are used for very short-range, simpler tasks. High-frequency (HF), the same band used for NFC, is most common in secure enterprise and hospitality environments, including hotel key cards and building access. Ultra-high-frequency (UHF) supports longer-distance reads, ideal for logistics, tolling and asset tracking. Most enterprise clients lean toward HF because it offers strong performance, security and compatibility across global infrastructure. 

RFID and NFC — What’s the Difference?

RFID and NFC are closely related, but not identical. RFID is generally one-way, a reader picks up information stored on a tag. NFC, however, is a subset of RFID that supports two-way communication. This enables devices such as smartphones to both read and interact with tags. In short, RFID helps identify and track; NFC enables interaction. You can learn more about how they compare in our RFID vs NFC guide.

Security and Reliability

Security sits at the heart of modern RFID. Older chipsets provided only basic protection, but today’s enterprise-grade components, such as NXP MIFARE DESFire EV3 and Infineon SLE, include robust AES and 3DES encryption. This protects user data and prevents chip cloning, a key considerations for access control, healthcare and secure mobility. At Oomph, we only work with trusted chipsets that meet strict security and interoperability standards. Learn more about our RFID cards.

Cards, Tags and Wristbands

RFID isn’t limited to one format. Cards are most common, used in hotels, membership programmes and corporate access. Tags and labels are ideal for supply chain and manufacturing environments where products need to be tracked through their lifecycle. Wristbands and wearables are widely used at events and venues to support cashless payments and secure entry. If you’re exploring options for sustainable credentials, have a look at our RFID wristbands and membership cards.

Real-World Applications

RFID is now embedded across industries. Hotels use it to manage room access; workplaces rely on it for secure entry. Events and festivals use wristbands to manage ticketing, VIP access and cashless spend. In transport, it powers ticketing and tolling. In the supply chain, it improves stock accuracy and movement tracking. Healthcare providers use it for patient ID and medication traceability. Across each sector, RFID enables faster workflows, higher security and fewer manual processes.

The Benefits

The appeal of RFID comes from its combination of speed and reliability. Wireless exchange means users don’t need to swipe, insert or align cards perfectly. Fewer manual checks reduce errors. Because tags are durable and protected from wear, they can be used again and again. RFID also integrates well with wider enterprise systems and IoT platforms, enabling automation and live reporting at scale. And with sustainable options such as Pulper Zero® organisations can adopt RFID without compromising environmental goals. Learn more about Pulper Zero®.

The Future of RFID

RFID continues to evolve alongside AI, IoT and blockchain. One of the most exciting developments is digital product passports, a way to store verified sustainability and traceability data directly on products. This ensures more transparent supply chains and makes it easier for responsible brands to communicate product history. As organisations look for scalable technology that balances security, efficiency and sustainability, RFID will remain central to that shift.

Find Out How RFID Can Transform Your Business

RFID quietly powers millions of interactions every day. It offers reliable access control, streamlined tracking and efficient identification across industries. At Oomph, we design bespoke RFID cards, tags and sustainable paper-based inlays that help enterprises reduce waste while improving performance. If you’re exploring how RFID could support your organisation, learn more on our RFID cards page or get in touch to speak with our team.