Mobile payment systems work by allowing users to conduct transactions using their mobile devices through various methods. Typically, these systems utilize near-field communication (NFC) or QR codes, enabling contactless payments. Transactions are secured through encryption and two-factor authentication, protecting sensitive data. Users can link their bank accounts or credit cards to mobile payment applications, streamlining the payment process. Integration with loyalty programs and budgeting features makes these systems appealing for consumers. Ultimately, mobile payment systems facilitate convenience and speed in daily transactions.