When NFC enabled phone sends a request to the cloud provider to get permission to make a payment (step 1), the cloud provider sends a SMS requesting a PIN number to identify the user of the phone - this is how cloud provider ensures the legitimacy of the phone user.
For verification,customer sends the PIN back to the cloud provider as an SMS.
The NFC cloud-based approach makes the business simpler for companies in terms of integration of SE card provisioning. It would be much easier for businesses to implement NFC services without having to perform card provisioning for every single SE.