NFC is an upgrade of the existing proximity card standard (RFID) that combines the interface of a smartcard and a reader into a single device. It allows users to seamlessly share content between digital devices, pay bills wirelessly or even use their cellphone as an electronic traveling ticket on existing contactless infrastructure already in use for public transportation.
The significant advantage of NFC over Bluetooth is the shorter set-up time. Instead of performing manual configurations to identify Bluetooth devices, the connection between two NFC devices is established at once (under a 1/10 second).
Due to its shorter range, NFC provides a higher degree of security than Bluetooth and makes NFC suitable for crowded areas where correlating a signal with its transmitting physical device (and by extension, its user) might otherwise prove impossible.
NFC can also work when one of the devices is not powered by a battery (e.g. on a phone that may be turned off, a contactless smart credit card, etc.).