Currently scratch cards and display discs are used, but Transport Minister Deputy Eddie Noel advertised for a new app-based cashless system.
He said this would eventually be rolled out to street parking as well as the island's 46 car parks.
It would run alongside the scratch cards so people without a smart phone could still pay to park.
The price of a scratch card is 76p per unit with a monthly season ticket costing Â£123.31, and Mr Noel said the new system would cost the same as scratch cards.
Mr Noel said it would give people a greater flexibility and make it easier to police as it would be likely to use number plate recognition. It should be in place by the middle of 2016.

The officer, 52, was seriously injured when a booby-trap device exploded under his van on Friday, 4 March.
A dissident republican group known as the New IRA said it carried out the attack.
The 45-year-old man has also been charged with possession of explosives with intent to endanger life or cause serious injury to property.
He is due to appear in court in Belfast on Saturday.
A 39-year-old man who was also arrested in connection with the attack has been released pending a report to the Public Prosecution Service.
Another man, a 34-year-old, who was being questioned about the bombing has been released unconditionally.

The UK government has announced a public consultation on the creation of five new marine protected areas in England, Wales and Northern Ireland.
These areas are designed to protect harbour porpoise populations.
Scientists say numbers are falling due to threats which affect their ability to catch food, breed and communicate.
But campaigners have accused the Scottish government of delaying efforts to protect the species.
Catherine Weller, of environmental law group ClientEarth, said: "These new protected areas are a step in the right direction for the harbour porpoise.
"We need to ensure the areas designated are those that will offer the highest benefit to the harbour porpoise and that when designated, these sites are managed effectively.
"It's disappointing the Scottish government has stalled its consultation regarding at least three further areas, reducing the potential for comprehensive protection for the harbour porpoise in UK waters."
The Scottish government has defended its record.
A spokeswoman told BBC Scotland: "The Scottish government remains fully committed to having harbour porpoise special areas of conservation in Scottish waters, where they are fully justified and supported by the evidence.
"However, the four proposals received for Scottish waters did not fully meet the scientific requirements, which is why Marine Scotland has begun a new selection process which will progress as quickly and methodically as possible."
The Scottish government has responsibility for the conservation, protection and management of seals and cetaceans.
Sixteen special areas of conservation for marine mammals have already been designated in Scottish waters.

The 18-year-old scored 88.40 to make history in what was the fifth and the final stop of the World Cup season.
She came ahead of Sweden's Emma Dahlstrom and Swiss Mathilde Gremaud.
Boston-born Atkin, who initially competed for the US before switching to Great Britain aged 15, was making her 15th appearance at a World Cup event.
Atkin will be competing at the Freestyle World Championships in Sierra Nevada, Spain (9-19 March). The event will be live on the BBC Sport website, app, connected TV and red button.
A new cashless payment system will be introduced into Jersey car parks under new plans by the States.
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A man has been charged with the attempted murder of a prison officer in a bomb attack in Belfast last week.
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Scotland is falling behind the rest of the UK on efforts to protect the harbour porpoise, according to environmental campaigners.
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Izzy Atkin became the first British woman to win a World Cup ski slopestyle event as she took gold in Silvaplana, Switzerland.