Sydney-based taxi booking service, goCatch, has launched an Australia-wide mobile payment system for passengers to pay their fares via smartphone.

goCatch is a service app for iOS, Android and Windows Phone 7 users designed to allow passengers to book taxis and track their progress, as well as assist drivers in finding business. The service has close to 100,000 users.

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"By integrating PayPal, consumers and taxi drivers will be able to make and accept payments conveniently and efficiently at a much reduced merchant rate," goCatch co-founder, Andrew Campbell, said.

The PayPal partnership gives customers a level of assurance that payments are completed securely and privately.

According to Campbell, payments can be made in as little as two taps, and receipts are sent by mail.

The new payment function will first be introduced to iOS users, with Android and Windows Phone versions to follow "at a later date," according to a statement by goCatch.