its got a super mini radio transmitter it in. they have them in those nifty credit cards you can swipe at the gas station places, the little key chain things or whatever.
ive seen it gone as far as a bar somewhere down south (miami?) has a RFID capsule it puts in its high paying customers arm so when he goes to the bar they just give him a drink and it goes on his tab - and when the night is done the RFID tracks what he had and when he walks out it pays his bill.
crazy cool stuff. from what i understand, companies are working on lowering the cost of the rf transmitter (the thing on the back of the sticky in pictures) so that they can put it in consumer bought products - for example like the grocery store, where you will walk through a little gate and all the products will ring up via RFID tags in the packaging. to my knowledge, it costs like 30 cents to install RFID per package.
it will happen in the foreseeable future.