New research has predicted that 20 million shoppers will be using their mobile phones to pay for goods and services by the end of the decade.

By 2020, mobile payments are expected to represent 1.4 per cent of total consumer spending, with the value of spending tripling to as much as £14.2 billion.

The report by the Centre of Economic and Business Research (CEBR) says that the benefits to businesses from the growing number of mobile transactions are a reduction in fraud, lower transaction costs and less cash flow problems.

Research from the United States has backed up CEBR’s findings as mobile devices are already fundamentally changing the way businesses are accepting payments.

Chief Executive of mobile payment specialist Powa Technologies, Dan Wagner says: “Mobile point of sale should be at the heart of any retail technology strategy. Its line-busting technology will be especially helpful in crowded shops in the run up to the festive season, improving the shopping experience by reducing waiting and making the process more personalised.

“This is a crucial time of year for the retail industry. More than ever before it needs a technology-driven revolution to create new ways to engage with customers as they gear up for Christmas.”