Could anyone explain me the different between PPSE(Proximity Payment System Environment ) internal and external modes?
I was looking into by Googling and using http://www.nfc-forum.org/home/ but did not find any answer.
In general, Internal mode is associated with self-activation privilege of contactless banking applet residing on the card. In this case, mobile app send a SET STATUS command to the card and the PPSE must contact the secure element contactless manager to get the details of the active applications and activate the right one.
External mode is associated with the other privileges where AAUI will provide PPSE with the details of active applications.
The differentiation is clearly documented in this document. I am adding my own answer as I had to spent considerable time on finding an answer and other members will not have to make the same effort in the future.
Quoting form the doc
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