Previous numerical studies have identified "phase mixing" of low-frequency Alfven waves as a mean of parallel electric field amplification and acceleration of electrons in a collisionless plasma. Theoretical explanations are given of how this produces an amplification of the parallel electric field, and as a consequence, also leads to enhanced collisionless damping of the wave by energy transfer to the electrons. Our results are based on the properties of the Alfven waves in a warm plasma which are obtained from drift-kinetic theory, in particular, the rate of their electron Landau damping. Phase mixing in a collisionless low-$β$ plasma proceeds in a manner very similar to the visco-resistive case, except for the fact that electron Landau damping is the primary energy dissipation channel. The time and length scales involved are evaluated. We also focus on the evolution of the parallel electric field and calculate its maximum value in the course of its amplification.