Everything you need to know about RFID: how it works, tag types and uses

RFID (Radio Frequency Identification) technology is now widely used in many sectors - logistics, industry, healthcare, retail - to improve traceability, inventory management and security. Long dominated by barcodes, these fields are undergoing a gradual transition towards more intelligent, automated systems, of which RFID is one of the pillars.

RFID first appeared in the 1940s for military use, and has its origins in the radio identification systems used during the Second World War (1939-1945), in particular by the British, who equipped their aircraft with transmitting devices enabling them to be recognized by allied radars (IFF system - Identification Friend or Foe).

In 1973, Mario Cardullo filed the first patent for an active RFID tag with a rewritable memory, marking a major step forward in the commercial development of the technology.

In the 2000s, companies like Walmart invested massively in RFID to optimize their supply chains, to the tune of $50 million, helping to democratize the technology on a large scale.

The gradual reduction in the price of tags - which today cost just a few cents - and the miniaturization of components have enabled mass adoption in new fields such as inventory tracking, intelligent livestock breeding, motion capture and connected objects.

Still widely used, the barcode remains the benchmark for identification. However, RFID offers decisive advantages in terms of remote reading, speed and mass processing.

This article will help you understand why this technology is gaining in importance, by detailing how an RFID tag actually works, its components and how it communicates wirelessly with a reader.

What is an RFID tag?

An RFID tag (also known as an RFID label or transponder) is a small electronic device for storing and transmitting data remotely. It operates without contact, thanks to the interaction between a microchip, an antenna and an RFID reader.
Each tag contains a unique identifier, and sometimes additional information depending on use. This technology enables fast, reliable, automated reading without direct visibility.

À quoi sert un tag RFID ?What is an RFID tag used for?

RFID technology is already present in our daily lives, often in discreet but essential ways. It enables, for example:

🔷Contactless payment with a bank card or phone.

🔷The use of contactless transport tickets (such as the Navigo pass).

🔷Luggage tracking at airports.

🔷The automated reading of biometric passports.

🔷Fast checkout in some stores via smart tills that automatically detect items.

But RFID goes far beyond these personal uses. It's also making its mark in a wide variety of professional environments:

🔷Logistics tracking of pallets, cartons or containers.

🔷Automated warehouse inventory management.

🔷Identification of equipment or tools in industry.

🔷Access control to buildings or secure areas.

🔷Traceability in healthcare (e.g. records, samples, materials).

🔷Location of animals, clothing or vehicles.

🔷Automation of flows in stores or factories.

What is the composition of an RFID tag?

Un tag RFID se compose généralement de trois éléments principaux :

1. Microchip
It contains a unique identifier (ID) and sometimes additional data (write/read). It's the “brain” of the tag.
2. Antenna
It picks up the radio signals emitted by the RFID reader and enables the chip to send back a response. The antenna determines the reading range.
3. Base or housing
This can be a simple, flexible sticker (RFID tag) or a rigid, waterproof case for demanding industrial environments. The format varies according to use (badge, label, hard tag...).

How does RFID communication work?

Here are the main steps in the RFID process:

1. Radio field emission
The RFID reader generates an electromagnetic field at a given frequency (LF, HF or UHF).

2. Reception by the RFID tag
The RFID tag, when it enters the field, picks up this signal via its antenna.

3. Activation of the chip
The electromagnetic field powers the chip (in the case of passive tags), which is then activated.

4. Data transmission
The chip sends back its information via the antenna. The reader picks it up and transmits it to an IT system (ERP, WMS, IoT) for processing.

Active, passive or semi-passive tags: what are the differences?

There are several categories of RFID tags, each adapted to specific needs in terms of range, cost, autonomy and operating environment. Choosing the right type of tag is crucial to the performance and reliability of your RFID solution.

Passive RFID tag

Passive RFID tags are the most widespread on the market, thanks to their simplicity, low cost and adaptability to a wide range of uses. Unlike active tags, they have no built-in power source: it's the energy emitted by the reader that activates them, enabling them to transmit the data they contain. This makes them ideal for large-scale deployment in a variety of environments.

Here are their main features:

🔷Without battery
🔷Utilizes the energy emitted by the RFID reader to operate
🔷Range: a few centimeters to several meters
🔷Cost: low, ideal for large volumes
🔷Usage: logistics, retail, healthcare

There are several types of passive RFID tags, classified mainly according to their operating frequency:
LF (low frequency, 125-134 kHz) : short range, suitable for metal or damp environments, often used for access control.

HF (high frequency, 13.56 MHz) : medium range, common in transport cards, libraries or contactless payments.

UHF (ultra-high frequency, 860-960 MHz) : longer range, particularly used in logistics and inventory management.

Active RFID tag

Active RFID tags are equipped with a built-in battery that enables them to emit a radio signal autonomously, without relying on the energy of a reader. This capability gives them a much greater reading range, making them ideal for more technical or critical applications.

Here are their main features:

🔷With built-in battery
🔷Emits radio signal autonomously
🔷Range: up to a hundred meters
🔷Higher cost, specialized use
🔷Usage: mobile asset tracking, security, real-time tracking

These tags are often used for real-time surveillance, long-distance access control, or tracking of vehicles, containers or sensitive equipment.

Semi-passive (or semi-active) RFID tag

Semi-passive RFID tags, also known as semi-active, also have a built-in battery, but use it only to power their internal circuitry, not to transmit continuously. Data transmission is triggered only when an RFID reader interacts with them, enabling them to consume less energy than active tags, while offering greater range than passive ones.

VHere are their main features:

🔷Built-in battery, but only transmits when activated by a reader
🔷Better autonomy than active, less expensive
🔷Usage: industrial environment, sensitive traceability

This type of tag is preferred in demanding industrial environments, especially when durability, extended range, and detection accuracy are required—without relying on a continuously active transmitter.

RFID: What are the concrete advantages over traditional technologies?

Adopting RFID is not merely a technological choice—it is a true lever for operational transformation. This wireless technology helps optimize logistics flows, automate repetitive tasks, and improve the reliability of field-collected data.

Compared to traditional solutions such as barcodes, RFID offers several major technical advantages. First, it does not require physical contact or visual alignment between the reader and the tag. An RFID reader can simultaneously query dozens of tags from a distance, and in some cases, even through non-metallic materials. This fast, line-of-sight-free reading method results in significant time savings in identification processes.

Second, RFID tags offer greater flexibility in data management. Unlike barcodes, which contain static information, RFID tags can store rewritable data. This capability allows information to be updated throughout the lifecycle of a product or asset, facilitating traceability, condition monitoring, and event-driven logistics management.

Finally, the robustness of RFID tags—available in ruggedized formats—makes them suitable for use in harsh conditions (extreme temperatures, humidity, dust, and demanding industrial environments). Their durability allows them to maintain performance where other systems may fail.

These specific features explain why RFID is increasingly being adopted in sectors such as logistics, manufacturing, healthcare, and retail—particularly for its ability to adapt to complex and demanding environments.

Here are the main operational benefits associated with this technology:

🔷 Contactless reading and no direct line of sight required
RFID readers can capture information from multiple tags simultaneously, without the need for direct visual alignment. This remote reading allows a large number of objects to be identified quickly without manual intervention. For example, a cart passing under an RFID gate can be fully inventoried in just a few seconds.
🔷 Inventory automation
RFID enables real-time inventory without manual handling, thanks to automatic communication between tags and information systems. This automation enables shorter and more frequent inventory cycles, without interrupting operational activity. It is particularly useful in warehouses, logistics centers, or retail outlets.
🔷 Reduction of human errors
By eliminating the need to scan each item one by one, RFID significantly reduces data entry errors, missed scans, and duplicates. Data reliability is improved, which limits losses, disputes, stock errors, and improves the overall quality of operational decisions.
🔷 Resistance to extreme environments
RFID tags can be designed to withstand harsh conditions: heat, humidity, dust, chemicals, or even explosive atmospheres (ATEX zones). They are therefore suitable for sectors where traditional labels are not enough, such as heavy industry, construction, or waste management.
🔷 Productivity gains and rapid return on investment
Thanks to the reduction in time spent on control, searching, or identification tasks, RFID contributes to a measurable improvement in productivity. It streamlines operations, reduces management errors, and often allows a return on investment to be observed within the first months of use.

How RFID integrates into our lives: everyday uses and real-world industrial cases

RFID is already part of our daily lives, often without us realizing it. It is used in many familiar applications: contactless payment, access badges, highway toll tags, biometric passports, transport cards, and even baggage tracking in airports. These examples illustrate the versatility and discretion of this technology.

But beyond these personal uses, RFID-especially in its UHF (Ultra High Frequency) version, which enables greater range and faster reading-is also profoundly transforming the operation of certain professional sectors. A particularly relevant case is that of retail and distribution.
In this context, UHF RFID tags are attached directly to products, allowing each item to be tracked throughout the supply chain, from the warehouse to the shelf. During restocking in stores, an employee can identify hundreds of items in seconds using a handheld reader or a fixed gate, without manually scanning each product. Some retailers go even further with automated checkouts: the customer places their items in a reading zone, and all tags are instantly detected, without manual handling or visual scanning. This reduces errors, speeds up transactions, and improves the customer experience.

A concrete example of successful implementation is that of West Cheval, a company specializing in equestrian equipment sales. Located at the Pôle Européen du Cheval, it manages both a physical store and an e-commerce site with over 1,000 brands. Before implementing RFID, inventories were a heavy burden, mobilizing the entire team for two days, with frequent stock discrepancies impacting service quality and sales.
To address this, West Cheval adopted the UBI Retail Boost traceability solution, which allows each product to be tracked from receipt to sale, both in-store and online. Thanks to RFID technology, the company now performs a complete inventory every month, in just 1 to 2 hours, with only two people. Stock discrepancies have been significantly reduced, real-time stock visibility has been enhanced, and order management has become more reliable.
Beyond internal efficiency, the impact has also translated into improved customer service, better responsiveness across sales channels, and increased revenue.

In the professional world, and especially in sectors such as retail, logistics, or healthcare, RFID is becoming a strategic performance driver. Thanks to RFID, companies can now offer a smoother customer experience, reduce errors, automate complex processes, and increase their competitiveness.
Thus, whether in our daily lives or in professional applications, RFID is proving to be a vector of digital transformation and an essential tool for companies looking to modernize, become more efficient, and meet the growing expectations of consumers. Its ability to adapt to various environments and to offer solutions that are both simple and high-performing ensures RFID a key role in the years to come.

Are you considering an RFID project? We can help you build a tailor-made solution adapted to your business environment. Contact us to discuss!

Contact us

Would you like to implement an RFID solution tailored to your business?
 Discover our real-world use cases here!

Learn more