The new system is expected to be introduced by next April after the council sought a "cashless payment service provider" for its 950 meters in the capital.
Regular visitors may also be able to set up accounts with the council and pre-pay for parking. The new system will not replace the existing system, but will expand the range of payment options from coin-only to coins, notes or credit and debit cards.
The city council currently allow you to charge car parking to your mobile phone bill, and the new system will give drivers a range of payment options.
Yesterday Councillor Tom Brabazon (FF) welcomed the news, saying that motorists often had difficulty in getting change for meters.
He said the system would save the council in the long run by reducing the amount of coinage they have to collect.