NFC

NFC (near-field communication) is a method of transferring data over a short length of less than 4 inches. If you were wondering about the toll booth you used your device to pay for a way to get in, that was something similar. NFC is used in almost all Nexus devices that are running Android. NFC is predicted to be used as a replacement for QR codes. As of now, a tiny chip in your phone is held up to a chip placed on or in something else. It is also predicted to be used for passports, housekeys, and other necessary stuff.

Google Wallet uses NFC for communicating financial business.