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Why NFC on phones?
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How does the phone confirm the payment without a network? With NFC the phone has a low bandwidth connection to the payment terminal that's enough to sign the transaction.
EDIT: I found it. It uses special phone codes that still use the mobile network to do the payment. If I understand correctly it would still not work in places where there's no reception, like some large buildings or air planes.
Yes, you need a phone network, but not internet. Also there is a small charge.