The new Trainline Smart system, to be piloted later this year, will let customers buy train tickets by mobile phone or via the Internet before downloading them onto a smartcard either at home with a plug-in reader, or at stations. Users then validate tickets by tapping them against a reader at railway stations fitted with gates, or with a handheld version onboard the train.

The system is based on the government-defined ITSO smartcard standard. All new rail franchises are now required by government to adopt the smart card technology. The new standard will also eventually be used as an upgrade to the London Underground Oyster smart ticketing system.

TheTrainline says its system will start to be rolled out next year and it expects the service to account for up to 50% of rail ticket sales by 2012.

In line with this the ticketing firm has selected technology from First Ondemand to secure its mobile phone-based payments system.

The vendor says its Authentisic Mobile technology will enable Trainline Smart customers to log on to their online account securely using most mobile phone handsets to see what tickets are stored on their smartcard. Customers can also manage their account, buy and pay for tickets and renew season tickets using mobile handsets.

Says Stephen Moore, CEO, First Ondemand: "Smart technology is changing the way the world does business and how companies and people communicate. The popularity of the London Oyster smartcard shows this innovative method of rail ticketing is clearly becoming the delivery channel of choice for many customers. The ability to incorporate an identity and authentication layer brings a greater level of client and customer assurance for transactions through the mobile phone."

Transport for London (TfL) launched its Oyster e-ticketing system in the city in 2003. TfL said last year that it has issued more than 10 million Oyster smart cards since the launch. The London transport authority is also working with handset manufacturer Nokia and phone network O2 to develop a scheme that will enable customers to pay for tube journeys using mobile handsets.

Meanwhile last month the Greater Manchester Passenger Transport Executive (GMPTE) announced plans to trial a pre-paid contactless transit card in Bolton that will use technology developed by e-money start-up sQuidcard.