I can't imagine how it would be possible to detect a phone in close proximity without allowing this though
Camera, and point it at their changing screen (or both at the same scene at the same moment). Not too intrusive.
GPS, but that would require location permission. Intrusive.
Audio, but that would require allowing microphone. Intrusive.
We tested it one time with like 10 phones and everyone bumping each other / the wall as a control, in the same room and it nailed every actual pairing and ignored the others. The wiki has more, but lacks the subjective experience of how magic it was.
It works in isolation and fails miserably when trying to do a big demo of it in a conference talk when attempted by dozens of people in the same room.