Oyster card readers are to be fitted at all London's rail stations over the next two years following a deal between the Government and Transport for London.
Transport for London will pay for the equipment at all 310 London rail stations in zones 1 - 6.
It is an execellent move for rail travellers who have been inconvenienced and forced to pay for separate rail tickets when they wanted to use their Oyster cards.
The deal is the first step on the way to a national system of smartcard ticketing.
Transport for London has agreed to work with the Department for Transport to ensure that all Oyster equipment is capable of accepting other smart cards.
These are currently under development for use on public transport across the country.
The deal was announced by the new Transport Secretary Douglas Alexander and London Mayor Ken Livingstone today (10 May 2006).
The DfT has already insisted that bidders for the new South Western rail franchise must make plans for a smart ticketing system.
Mr Alexander said: "This is a major step forward in ensuring that all passengers can benefit from the improvements new technology can bring."
Mr Livingstone said: "The extension of Oyster from just 60 rail stations to over 300 will enable passengers to move easily between rail, Tube, DLR, tram and bus using an Oyster card without having to buy separate tickets."
Transport for London Commissioner Peter Hendy said: "It resolves the problem passengers currently face of having to buy two separate tickets to travel on overground rail and Transport for London services."
The introduction of Oyster technology could start this year at gated stations and Oyster pay-as-you-go could be available at National Rail stations in London during 2008.
Transport for London introduced the Oyster card in 2003 to speed up passage through Tube gates and boarding buses. Oyster allows 40 people per minute to pass through gates, 15 more than those with magnetic stripe tickets.
Up to three different Travelcards or bus pass season tickets and "pay as you go" can be stored on the same Oyster card at the same time.
Oyster can be topped up online, over the phone, at travel information centres or at one of 2,200 Oyster-enabled agents.
Transport for London will provide the Oyster readers and train operators must install them as well as operating and maintaining them.
The Department for Transport will fund upgrades to existing Oyster equipment in London to make Oyster gates accept basic alternative Smartcard (ITSO) products. The expected cost is around £19million.
There are already 5 million people with Oyster cards.
Information from Department for Transport.