The world's first logo-recognition app launched today will turn an Android or Apple phone into a digital fundraising tool.

Creators of the SnapDonate app say that when it is pointed at a charity logo it will instantly recognise which one it is.

And, as people carry fewer coins or notes, charities hope it will help fill the black hole in fundraising

Research supplied to SnapDonate.org by the Charities Aid Foundation and the Payments Council, the body responsible for ensuring UK payment services work, suggests charities may miss out on a chunk of the £1.6 billion given to good causes by the British public in cash each year as the amounts of money people have in their pockets are dwindling.

Donations on the app will all be sent via fundraising platform JustGiving.

Nick Georgiadis, head of direct giving for Cancer Research UK, said: "In a society that is increasingly moving away from cash as a way of conducting payments, it's important charities make use of innovative ways for supporters to donate.

"Any technology solution that makes charity-giving easier and straightforward is welcomed. SnapDonate will increase the options for tech-savvy donors looking to support Cancer Research UK's life-saving work."

Mark Warrick, founder of The SnapDonate Foundation, said: "The amount of money that charities are at risk of missing out on is staggering. Something has to be done now to avoid this becoming a big problem - and that's why we created SnapDonate.

"There's been a huge buzz around the app since we introduced it to industry experts at the Institute of Fundraising's 2014 Innovation Conference, and several charities are already testing it for use in their own campaigns.

"I'm excited to help charities defuse this timebomb and not lose out on vital donations merely because they haven't offered supporters a viable alternative to cash. From today onwards, there is."

Chris Field, head of global partnership development at JustGiving, said: "SnapDonate is one the most creative apps we've seen built since we opened up JustGiving's platform to developers.

"It's also a really innovative way to embed giving in people's lives and shows how much scope there is to use JustGiving to help people in new ways."

The app deducts no fees, shows no ads, and stores no personal information about donors. JustGiving charges its standard handling fee.