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Near Field Communication (NFC) is used mostly in paying for purchases made in physical stores or transportation services.A consumer using a special mobile phone equipped with a smartcard waves his/her phone near a reader module.The consumer uses web pages displayed or additional applications downloaded and installed on the mobile phone to make a payment.It uses WAP (Wireless Application Protocol) as underlying technology and thus inherits all the advantages and disadvantages of WAP.This type of mobile payment method, which is extremely prevalent and popular in Asia, provides the following benefits: Premium SMS / Premium MMS In the predominant model for SMS payments, the consumer sends a payment request via an SMS text message or an USSD to a short code and a premium charge is applied to their phone bill or their online wallet.The merchant involved is informed of the payment success and can then release the paid for goods.Since SMS lacks end-to-end encryption, such solutions employ a higher-level security strategies known as 'tokenization' and 'target removal' whereby payment occurs without transmitting any sensitive account details, username, password, or PIN.

A Multimedia Messaging Service can also deliver barcodes which can then be scanned for confirmation of payment by a merchant.

This is a logical alternative to credit card and Premium SMS billing.

In 2012, Ericsson and Western Union partnered to expand the direct operator billing market, making it possible for mobile operators to include Western Union Mobile Money Transfers as part of their mobile financial service offerings.

Remembering keywords is not required since sessions are initiated by the enterprise to establish a transaction specific context.

Reply messages are linked to the proper session and authenticated either synchronously through a very short expiry period (every reply is assumed to be to the last message sent) or by tracking session according to varying reply addresses and/or reply options.

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