It requires a technology called Near Field Communication (NFC), which is an extension of Radio frequency identification (RFID) technology that combines the interface of a smart card and a reader into a single device. This allows two-way communications between endpoints, where earlier systems were one-way.

For two devices to communicate using NFC one device must have an NFC reader/writer and one must have an NFC tag.

Benefits of Mobile Payment using NFC:

• Quick and easy payment method.
• Transactions are made only within close proximity, which makes the system a safer method of payment.