Some advantages of a passive RFID tag are:

• It functions without a battery; passive RFID tags can have a useful life of twenty years or more.
• It is typically much less expensive to manufacture passive RFID tags.
• It can be much smaller than active RFID tags.
• Passive tags are lighter and are less expensive then the more powerful active tags.

• The tag can be read only at short distances, from a few inches to several feet at most. This limits the device for certain applications.
• It may not be possible to integrate with sensors that use electricity for power.
• The tag remains readable, even after the item to which the tag is attached is no longer being tracked.
• Requires a higher-powered reader than active RFID tags
• The orientation of a passive RFID tag must be just right or the reader won't locate it.
• Passive tags also have difficulty sending data through liquids or metal.
  

Uses of passive RFID tags:

• Apparel
• Consumer goods
• Asset tracking
• Ticketing
• Vehicle identification
• Inventory control
• Access control
• Entry pass, toll pass
• Electronic toll collection at toll booths
• Rapid Transit - buses, ferries, trains and subway
• Library book or bookstore tracking
• ID Badges
• Case, pallet, and shipping container tracking
• Supply chain management
• Work-in-process tracking