Milton Keynes Council’s next-generation parking programme will include radio frequency identification (RFID)-enabled smartcards and mobile phone-based cashless ticketing.

The plan is the latest UK example of the trend for using smartcard technology to buy low-value items, a trend becoming increasingly popular with consumers across the world.

By the end of the year, residents eligible for parking permits will be issued with smartcards that will store driver information and details about what kind of parking they are eligible for.

Cards will be scanned by attendants using handheld devices to confirm a vehicle is parked legally, says Milton Keynes parking operations manager Phil Bowen.

‘The RFID system uses a card the size of a credit card, placed in the windscreen of the vehicle, which the parking attendant can scan as they pass,’ he said.

The electronic system will be more convenient for residents because they will no longer need to carry cash, and more secure because no money will be handled by drivers or council staff.

Drivers will also be able to make cashless payments at on-street parking meters using a mobile phone.

Residents who have registered their vehicle and banking details will text their registration number and location.

Parking attendants using the same handheld devices used to scan RFID cards will confirm if a ticket has been bought.

Drivers will receive a text to inform them when 10 minutes remain before their ticket expires, giving them the option to lengthen their stay.

The scheme will be in place by September and is expected to prove popular with residents, says the council’s director of environment Brian Sandom.

‘The public are used to using credit, debit or store cards,’ he said. ‘Cashless pay-and-display parking is a logical and convenient extension to that.’

Next-generation payment methods such as contactless smartcards and mobile phones are on the rise across the world, says analyst Peter Harrop, from RFID specialist ID TechEx.

‘We are reaching a tipping point and smartcards will still grow in popularity,’ said Harrop. ‘People will not stop using money, but it will become a minority.’

The UK is lagging behind countries such as China, Japan and Korea, but major banks are now starting to wake up, says Harrop.

Mastercard has issued 10 million contactless payment cards in the US and more than 100,000 shops have altered their tills to accept them. And trials are taking place in London of an upgraded Oyster travelcard that can be used for low-value purchases.

One of the issues facing widespread adoption of cashless payments is that it needs the support of retailers, who must adapt their tills and systems.

‘Retailers are always open to new payment methods if it meets consumer needs,’ said a British Retail Consortium spokesman.

‘There could also be benefits to retailers in increased efficiency and improved security.’