The government is developing a plan to let travellers use their mobile phones or smart cards to pay across England's public transport system.

Officials believe such a system could save £2.6 billion per year in cash, convenience and the reduced use of motor vehicles. The Department for Transport started a consultation on Thursday to solicit input from the public, which will run through Oct. 28.

The smart cards and mobile phones would use near-field communication (NFC) technology, with embedded microchips storing transport credit.

The system would be centered around a technical platform called ITSO, which was created by a nonprofit organisation. ITSO is a set of technical standards for integrated smart ticketing, which would allow passengers to use smart cards or their mobile phones for tickets sold by different transport entities. It is an open specification, and any manufacturer can build products that use it.

The best-known smart card technology used in the U.K is the Oyster card (pictured), which is compatible with most transport systems in greater London. But the Oyster card, launched in 2003 and used on 78 per cent of bus and underground trips in London, won't be in the running for use across England.

"Oyster is a proprietary system with only one supplier and was designed specifically for London, so it is not flexible enough to deal with a wide range of tickets that might be required for a national standard," according to a Department for Transport consultation document.

While smart card and mobile phone payment technology is mature, use of the systems is not widespread due to cost and technology issues, according to the consultation.

The up-front infrastructure costs to implement the system could be as much as £1.1 billion, with running costs around £260 million annually. However, the 10-year projection is that for every £1 spent on the system, £7 in benefits would be derived, the document said.

Many European payment cards allow for contactless payments under a certain amount. In the UK, the maximum purchase is £10 without the cardholder entering their PIN.

NFC-enabled mobile phones are not common yet. The Department of Transport,  however, said there are indications the mobile phone industry will release those kinds of mobiles in larger numbers soon, with one unnamed manufacturer planning to release a model later this year.