A method for authorizing a mobile payment transaction is provided that is based on device locations. The method includes receiving, by a server, a request from a point of sale (POS) device to authorize a payment transaction involving a payment facilitating device. In an embodiment, the request includes payment information of the payment transaction and location information of the POS device. When the request is received, an authorizing client device for the payment transaction is identified based on the payment information from the payment facilitating device. The request to authorize the payment transaction is granted when it is determined that the authorizing client device is located within a predetermined distance from the POS device.