Customer Service Minister Victor Dominello said the state government's Park'nPay app has been a "game changer" for drivers.
The app, which went live in Liverpool, The Rocks and parts of Darling Harbour and Pyrmont in October, has had 9500 downloads and more than 7823 transactions.
The technology eliminates the need for drivers to walk to a parking meter by allowing them to pay and top up via the app. It also helps drivers avoid parking fines, by sending a notification when their meter is running low or their park is about to turn into a no stopping zone.
Mr Dominello said commercial parking giants Wilson Parking and Secure Parking are coming on board in the next few weeks and will supply data on their parking stock via the app meaning more spots for motorists.
"The app is convenient and makes life easier for drivers by putting the power of parking in their hands," he said.
"Wilson Parking and Secure Parking collectively operate about 250 commercial car parks across metro Sydney, comprising of more than 125,000 parking bays, accessed by millions of drivers each year.
"This is a big win for drivers. Whether you're visiting family and friends or doing some shopping, there will be more opportunities to use the app to find that ideal spot and reduce congestion."
The app is free and available on iPhone and Android phones with drivers able to create an account with their licence plate and payment details. Parking inspectors will check to see if a meter has been paid by searching licence plate details using an app on their phone. Parking meters will continue to accept coins and credit cards.
- Details/download: parknpay.nsw.gov.au.