Adopting mobile payments instead of credit cards, cheques and cash, could boost the UK’s retail sector by about £1 billion, according to new research.

Findings published by the Centre for Economics and Business Research (Cebr) for mobile payments business Zapp show reduced checkout times and more convenient transactions would have added about £1 billion amount to retail sales in 2013, had the technology been widely adopted.

Shifting from more traditional forms of payment could save retailers £463 million last year in lower transaction costs, said CEBR, which also estimates that 20 million adults will be using mobiles to pay for goods and services by the end of the decade.

It says the overall value of transactions will triple by 2018 to £14.2 billion.

Zapp, which commissioned the study, said in-store shopping experiences could be improved if mobile payment systems were in place to reduce queues. Separate research shows long queues would put off around three-fifths of ‘in-store’ shoppers.

Douglas McWilliams, executive chairman of Cebr, said: “It's clear that retailers stand to benefit in multiple ways from the widespread adoption by consumers of mobile payments.

“Cash is costly because of store count and preparation costs, and errors in transactions, whilst credit and charge cards are expensive because the transaction cost increases with the price of the purchase.

He added: “There is a clear business case in terms of reduced costs and improved customer service and sales.”