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Question:

To communicate wirelessly at a range of about 2 inches, supports encryption, which mobile communications protocol permits two portable devices and is becoming a very popular mode of sending payments using a smartphone?

A NFC
Explaination

Near Field Communication (NFC) is the technology that powers some of the most common mobile payment systems, such as Apple Pay and Android Pay. Like keeping the phone up to a supermarket checkout terminal, this is a short-range technology that only operates in a certain location.