The trigger pickup, in Electrical Engineering terms, is a Hall Effect sensor (because of the way it works).
Can't take the EE out of Matt_E. :biggrin:
We'll call it a trigger pickup to avoid confusion, sorry.
In short: a wire with current going through it will generate a small voltage at a certain phase angle when a magnetic field comes across the wire.
Compared to the older coil setup, the H-E sensor is much smaller, lighter, requires a much smaller trigger magnet, and has much less drag on the rotating mass of the flywheel. It is also more accurate in precise timing and less prone to noise.
It is ideal for feeding digital ignitions because of fast response and small, precise signal (square wave, essentially)
Nearly all modern ignitions use it (not just PWC ignitions)
If you really want long and boring detail, go
here