The service, Ukash, is aimed at merchants whose customers do not have a debit or credit card or simply do not wish to use their cards for online payments.

The partnership with Ukash means that DataCash can now offer its merchants the ability to accept cash payments online. Customers simply exchange their cash for a Ukash voucher at any one of 14,000 Ukash issuing locations across the UK and then redeem their voucher online as payment against the purchase of goods and services by using the unique Ukash voucher reference number.

Integration of the service is simple via the DataCash API. Once integrated, merchants can show that they accept the Ukash payment brand by displaying the distinctive Ukash logo on their website alongside their existing payment types. Consumers simply enter the unique 19-digit number from their Ukash voucher when they are asked to pay.

According to research carried out by Ukash, UK retailers are losing almost £8 billion per year by failing to accept cash payments for online transactions. This would represent an increase of at least 43% on the current level of online sales of £18.3 billion, which translates into a significant amount of lost business to individual retailers.

Gavin Breeze, DataCash Business Development Director said: "Multi-channel retailing is evolving all the time and merchants are mindful of the changing behaviours of consumers as well as the growing number of payment options available. Not all consumers wish to pay by credit card, even if they have them at their disposal. For example, some people are still wary of using the Internet as a means of buying goods. Also, you may wish to avoid having an item appear on your statement if it spoils a surprise, such as a gift for your partner."

Justin Lunny, Ukash Director of Sales & Business Development said: "Ukash is very pleased to be working with DataCash. The partnership will enable DataCash's significant base of leading e-commerce merchants to accept payment from a far broader range of consumers with Europe's market leading online cash payment brand."