Abstract: A point of sale (POS) payment system does not require the payor to disclose confidential and sensitive financial information to the payee in order to settle the transaction. The payee presents the payor with an invoice or bill. The payor requests from their bank (or proxy for the bank) a payment token for a predefined sum and receives the payment token electronically, such as via smart phone or other portable device. The payment token is transferred to the payee as payment for the invoice. The payee stores the electronic payment token or the data associated therewith and submits the token to the payor bank (or proxy for the bank) to settle the transaction or invoke the settlement process.