Which of the following BEST describes the technology utilized in digital wallets?

Infrared (IR) technology requires a direct line of sight and is not commonly used for digital wallet payments due to its operational limitations.

NFC enables short-range, wireless communication between two devices when they are brought into close proximity, typically within a few centimeters. This technology is fundamental for digital wallets to allow users to make payments by simply tapping their smartphone or wearable device on a compatible payment terminal.

Bluetooth is used for wireless communication over longer distances for device pairing but is not the primary technology for standard contactless payment methods in digital wallets.

Radio-Frequency Identification (RFID) is similar to NFC but is generally employed for broader applications like inventory tracking or access control, rather than directly powering consumer digital wallet payments.