Smartphones 'will revolutionise the way debit cards are used'

Smartphones will completely overhaul the way debit cards are used in Australia and around the world, it has been suggested.

Analysts at research firm Forrester have conducted a study on behalf of PayPal, which showed the demand for sophisticated wireless technology is spiralling upwards.

This, the organisation believes, could result in cash being made almost redundant within just five years, as people will be increasingly able to pay for items using their mobile phones.

Managing director of PayPal UK Carl Scheible believes shoppers will also benefit from the hi-tech system because retailers will be able to use the technology to send exclusive discount offers to their phones as they walk in and out of stores.

"We're not saying cash will disappear entirely, but we'll increasingly use our phones and other devices rather than our wallets to pay in-store as well as online," he commented.

Aussies clearly love the concept of cashless payments, as MasterCard revealed earlier this week that its 'touch and go' PayPass facility is proving popular, with more than one million transactions being completed in August alone.

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