The unpopular chipknip, a smart card that can be loaded with digital cash, will be phased out over the next 18 months, RTL news reports on Wednesday.

The electronic purse system was introduced in 1996 but has never caught on as consumers stuck with their traditional direct debit cards.

From next month, the card can only be used in parking meters, office canteens and vending machines and it will disappear completely from January 2015.