Pay-as-you-go train tickets piloted at 90 stations
Passengers at more than 90 railway stations in the West Midlands and Greater Manchester will benefit from pay-as-you-go ticketing from next year.
The government has announced stations will be fitted with technology allowing travellers to tap-in and out.
The pilot scheme, funded in part by reallocated HS2 money, form part of wider government railway reform plans.
Rail Minister Huw Merriman said it would ensure best-value fares for passengers.
"We want to encourage more people back onto our trains, with tap-in technology meaning using our stations couldn't be easier," he said.
This pay-as-you-go ticketing is already used in and around London.
The West Midlands pilot will cover 75 stations across the Transport for West Midlands (TfWM) area, including five currently under construction.
Passengers in the region will use existing Swift smartcards which allow access to local bus and tram networks.
In Greater Manchester, railway users will use contactless bank cards and smart devices to travel through 17 stations on the Glossop to Manchester Piccadilly and Stalybridge to Victoria lines.
The Department for Transport, Great British Railways Transition Team and Rail Delivery Group (RDG) are working with TfWM, the West Midlands Rail Executive, Transport for Greater Manchester and train operators to deliver the project.
The government said it formed part of its devolution deal to give local leaders greater control of transport networks.
In response, Greater Manchester mayor Andy Burnham said: "We are transforming how people travel in Greater Manchester, with the aim for people to pay for journeys easily and seamlessly across buses, trams, trains and cycle hire."
He added the plan was to integrate local rail services into the regional Bee Network by 2030.
West Midlands mayor Andy Street said the plan would ensure "best value" travel around the region's networks.
"Thanks to this pilot scheme, we will now add rail to our offering - making Swift truly multi-modal and bringing us much closer to a London Oyster card-style system," he added.
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