How does proximity mobile payment work?

Proximity mobile payment, also called NFC mobile payments, is when you pay for goods and services with your mobile phone at a physical point-of-sale (POS) terminal. This method of payments is initiated from a mobile phone that uses Near Field Communication (NFC) technology.

With NFC mobile payment, your credit or debit card data is stored in your phone inside a secure element, a special chip designed specifically to ensure the security and privacy of your personal and financial information. To pay, you simply bring your mobile phone close to the POS terminal (less than four inches) to make the payment without swiping or touching anything.

See also, “What is a Trusted Service Manager (TSM)?