The Parking Shop in Old Kent Road, where Southwark residents can buy parking permits and pay penalty charge notices over the counter, is to close its doors on 7 January.
The council says that use of the Parking Shop has declined from a peak of 3,599 visits per month in 2006/07 to just 1,643 visits per month as more and more people have chosen to use telephone and online services instead.
Since the start of December Southwark residents have been able to go online to apply for a new (or renew their current) residents' or visitors' parking permit.
Permits are also available over the phone via a new free number (0800 138 9081) as well as online at www.southwark.gov.uk/parking
"It's so important that we harness technology to make our services more efficient, and save the tax payer money where we can," says Cllr Barrie Hargrove, cabinet member for transport, environment and recycling.
"Our new online parking services are examples of just that. Residents have shown that they are keen users of the internet for all sorts of council services and these two additions are a great example of innovation making life easier for everyone."
The savings to the council from the moves to online transactions have been estimated at £148,000 over the next year. This figure would jump to £250,000 if all permits were renewed like this.
All services that were available at the Parking Shop will be available online or on the phone. Residents are still able to make face-to-face transactions at the borough's two cash offices in Walworth Road and Bournemouth Road and can pay for their permits by cash at the car pound on Mandela Way.