Secure authentication and transaction system and method

A method of authenticating a plurality of remote mobile devices in an application server site, comprising the steps of:

• sending a request to an authentication server, for an online electronic payment transaction activity over a public computer network from one of the remote mobile devices;
• directing the remote mobile device to the authentication server for authentication;
• receiving an indication from the authentication server that the remote mobile device is authenticated responsive to:
• storing first authentication-enabling data unique to the remote mobile device, and storing information regarding one or more online payment transaction activities enabled for the remote device;
• receiving second authentication-enabling data, corresponding to a client token, from a software program in the client token of the remote device in connection with the request by proximity-based radio frequency communication;
• connecting the client token to the authentication server with an internet protocol address of the authentication server stored in the software program to establish a secure connection;
• authenticating the remote device by sending an encryption produced by the software program of the client token that corresponds to the first authentication-enabling data and the second authentication-enabling data over the secure connection, and decrypting the encryption;
• enabling the electronic payment transaction activity with a registered merchant for the remote mobile device over the public computer network responsive to authentication of the remote device by the authentication server.