RFID-Based systems.  RFID is an automatic identification technology that stores and retrieves data by using two main components: a reader and a tag (transponder).  Depending on the technology type (UHF, HF) important features are that tags and readers do not require direct contact or particular orientation, and can function currently from two centimeters to a maximum distance of about 10 meters. Readers can simultaneously read and decode hundreds of tags per second.  RFID tag data capacity is large enough that each individual tag has a unique code and therefore permits item-level tracking. (Linear bar codes are limited to identifying a single type of product.)

RFID tags are designed and produced in a variety of shapes and sizes, dependent on application requirements. The applications being explored are practically infinite.  Areas of use include supply chain management, inventory tracking, and management of public transportation, ticketing, electronic payment, food life cycle monitoring and localization of individuals and objects.  The combination of RFID technology, localization, and retail systems is resulting in new ways to track consumers' tastes and interests, and improve their buying experience.  However, for RFID's potential to be realized, it must continue to become more cost effective.