The service, which was launched in the UK, US and Canada in July, enables PayPal customers to make purchases from online merchants using the mobile Web. By clicking a Checkout with PayPal button on the mobile site users are transferred to PayPal, where they log in, review and select their payment method and the correct shipping address. The customer is then returned to the mobile site to complete the transaction.

PayPal Australia MD Andrew Pipolo told reporters that Mobile Checkout will be embraced by account holders in Australia for the same reasons that they choose PayPal for Internet shopping - choice, convenience and security.

Earlier this year eBay-subsidiary PayPal launched a mass market mobile payments system in the US, Canada and UK for customers to make purchases and transfer funds using SMS text messages.

The service also included a 'Text to Buy' feature so that users can purchase advertised items by sending a text message containing a product code located in an advert. PayPal's automated system then phones the user, prompting PIN entry for verification, before routing payment and shipping details to the retailer.

Earlier this week PayPal began gearing up for the launch of its 'virtual card payment system' which allows surfers to pay for purchases on Web sites that don't accept PayPal services directly.