Potential uses

RFID tags are often envisioned as a replacement for UPC or EAN bar-codes, having a number of important advantages over the older bar-code technology. However it is unlikely that RFID tags will replace barcodes, but more likely that it will be used as a complementary technology. This is for two main reasons: 1) Cost of tags, 2) necessity to individually recognise an individual item. The cost of a tag is still relatively high, but in time this will reduce due to economies of scale. However, it is unlikely that lower value items will ever justify any cost associated to tagging it. Also the unique nature of each tag may be considered to be overkill in being able to track the final consumer of every can of beans or bag of potatoes.

It must also be recognised that the storage of data associated with tracking goods down to item level will run into many terabytes. It is much more likely that goods will be tracked at pallet level using RFID tags, and at item level with product unique rather than item unique barcodes.

RFID codes are long enough that every RFID tag may have a unique code, while current UPC codes are limited to a single code for all instances of a particular product. The uniqueness of RFID tags means that a product may be individually tracked as it moves from location to location, finally ending up in the consumer's hands. This may help companies to combat theft and other forms of product loss. It has also been proposed to use RFID for point-of-sale store checkout to replace the cashier with an automatic system which needs no barcode scanning. However this is not likely to be possible without a significant reduction in the cost of current tags. There is some research taking place into ink that can be used as an RFID tag, which would significantly reduce costs. However, this is some years from reaching fruition.