A number of Bus Éireann regional routes are to trial paperless tickets later this year.
The National Transport Authority (NTA) has announced a contract for a mobile ticketing system to Cubic Transportation Systems Ltd.
This provides a number of key services required to operate and administer the system.
A mobile phone application will allow customers to purchase tickets through their phone, and present the ticket on their phone to the driver.
The service will be rolled out on a pilot basis on certain Bus Éireann regional routes later this year, with further routes to be added on a phased basis.
This is the first phase of the NTA's Next Generation Ticketing (NGT) programme - which seeks to implement new and more flexible ticketing systems.
Cubic already operates mobile ticketing systems in major cities such as London, Chicago, New York and Cologne, Germany.
Some of their more notable recent projects include the replacement of the Metrocard in New York in 2017, and the Opal Card in Sydney in 2012.
Director of public transport services, Tim Gaston, said: "As providers of Iarnród Éireann's integrated ticketing management and distribution system, they are also familiar with the dynamics of public transport in Ireland.
"We are looking forward to working together with them to deliver mobile ticketing for public transport customers."
Anne Graham is chief executive of the NTA: "The introduction of mobile ticketing represents a significant development in public transport ticketing in Ireland, but it is just the first of many changes in ticketing that we believe will enhance the provision of public transport across Ireland."
The service will run alongside current offerings, such as Leap Cards.