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There is likely to be a further increase in the amount people spend online over the next two years, figures have revealed.

PayPal suggests online shopping could equate to as much as £21.3 billion by 2011, marking an increase of 137 per cent on current spending levels.

"As we all try to make our budgets work harder during the recession it is hardly surprising many of us have headed online to seek a better deal. In fact almost nine million of us now shop online at least once a week," commented Carl Scheible, managing director of PayPal UK.

He suggested that by 2011 as much as one in every £14 would be spent on internet purchases, with many believing that high street shopping will eventually die out as a result.

The payment services provider recently revealed that online retailers could be crucial to helping the country out of the recession as it is likely to post the only growth in British retailing before 2012.

Undertaken by Experian, the report suggested sales could grow to £510 million by 2011.

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