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The report suggests that the company’s mobile payments solution will be based on NFC (Near Field Communications) technology, meaning that new phones with NFC hardware would also have to be released.

NFC stands for "near field communication," and it's a technology that allows you to trigger actions on your phone by tapping the back of the device to another NFC-enabled point of contact.

Near Field Communication software company Zenius Solutions has launched an NFC add-on software product for GSM phones enabling interactive NFC capability on mobile phones currently in market.

Often the term will bring to mind the ability to pay by holding your phone over a reader, but the system can also use NFC tags embedded in credit cards, ID card, passports, and the like.