The government is working with industry specialists to introduce a nationwide smartcard for use with all railway systems. The scheme will be similar to the Oyster system that currently exists in London.
The move follows a report by Sir Roy McNulty on rail reform, which identified inefficiencies worth £2.5 to £3.5 billion per year.
Transport Secretary Justine Greening: "It's time to bring fares out of the 1970s and into the 21st century. We will expand smart tickets to give more passengers the kinds of benefits travellers in the capital already enjoy with Oyster cards. Working with industry, we will roll out smart ticketing across England and Wales and also across different operators, increasing convenience for passengers."