Proximity mobile payments are defined as payments to a merchant that are initiated from a mobile phone. These payment are made by simply waving a mobile phone that uses Near Field Communication (NFC) technology near a merchant's point-of-sale device.
NFC-enabled mobile phones incorporate smart chips that allow the phones to securely store the payment application and consumer account information and to use the information as a "virtual payment card." While these smart chips can be present in many forms, this paper addresses three options: smart card based subscriber identity module (SIM) cards, embedded secure elements in the phone, and secure digital (SD) memory cards.
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NFC technology overview
Collaborative implementation model
Collaboration model stakeholder roles and benefits
Mobile transaction standards, specifications, and certifications
Secure data delivery
Securing the payment application and account information
Interaction between the NFC mobile device and POS terminal
Considerations when changing or discarding mobile NFC phones
Countermeasures to fraud and responsibility for protection