NFC stands for Near Field Communication. NFC provides two way wireless communication in short distances (few inches). NFC is commonly used in mobile payment systems. For example, you can hold your NFC enabled device near a payment system and pay with an online wallet or credit card via your phone.
NFC can help with Bluetooth pairing. It can also act as an access token identity “card” and provides short range ecryption.
NFC can have active or passive devices. Passive devices just pass information along when an active device activates them. An active device is powered and can both read and send information. Bus cards and credit cards are examples of passive devices. Mobile phones and card readers are common examples of active devices.