Near Field Communication (NFC) Technology represents short range (practically up to 4 cm) wireless communication offering safe yet simple and intuitive communication between electronic devices that we use on a daily basis. Users of devices having NFC application in it can simply touch their devices to other similar elements having NFC application to communicate with them, making application and data usage easy and convenient. NFC can be called as the next generation of Radio Frequency Identification (RFID) as technically its working principal is based on RFID however from application point of view it is similar to Bluetooth in some ways since it allows communication between two active devices. NFC can be the future medium of contactless electronic payment as it inhibits eavesdropping on NFC - enabled transactions pertaining to its short range, however range can be extended by attackers using some range extension system. In this paper we briefly discussed the advantages, limits or challenges of NFC technology along with its applications which opens up exciting new usage scenarios for mobile devices.