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. 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.

An organization called EPCglobal is working on a proposed international standard for the use of RFID and the Electronic Product Code (EPC) in the identification of any item in the supply chain for companies in any industry, anywhere in the world. The organization's board of governors includes representatives from EAN International, Uniform Code Council, The Gillette Company, Procter & Gamble, Wal-Mart, Hewlett-Packard, Johnson & Johnson, and Auto-ID Labs. Some RFID systems use alternative standards based on the ISO-classification 18000-6.

In July 2004, the Food and Drug Administration issued a ruling that essentially begins a final review process that will determine whether hospitals can use RFID systems to identify patients and/or permit relevant hospital staff to access medical records.

Also, the FDA recently approved the country's first RFID chips that can be implanted in humans. The 134.2kHz RFID chips, from VeriChip Corp., a subsidiary of Applied Digital Solutions Inc., can incorporate personal medical information and could save lives and limit injuries from errors in medical treatments, according to the company. The FDA approval was disclosed during a conference call with investors.

Some in-home uses, such as allowing a refrigerator to track the expiration dates of the food it contains, have also been proposed, but few have moved beyond the prototype stage.

Another proposed application is the use of RFID as intelligent traffic signals on the road