Transport ministers seek to replicate London contactless success.
The government is investing £620,000 over the next two years to roll out contactless travel across the West Midlands rail network, as it pushes to establish smart ticketing across the UK.
Under the plans, Swift smartcard use will be extended further into the West Midlands rail network, including the redeveloped Birmingham New Street Station which is due to reopen this September.
Susan Kramer, minister of state for transport, said: "Smart ticketing is revolutionising travel and is an important part of the transport investment which will help to build a stronger economy and fairer society. I am very pleased that it is gaining real momentum.
"Implementing smart tickets involves close working across operators, administrative regions and industries. These three initiatives show how much can be done through partnership working."
After announcing the funding, Kramer also oversaw the signing of an agreement between bus operators and the Smart Cities Partnership to begin smart ticketing this year.
Members of the partnership include nine built-up areas in Yorkshire, West Midlands, Merseyside, Leicester and Nottingham.
The government also said it would be working with the UK Cards Association to develop contactless payment systems across the rest of the country, having recently marked six months of contactless payments in London.
Melanie Johnson, chair of the UK Cards Association, said: "Choice and speed of payment is important to customers and contactless cards offer greater convenience when you’re travelling by train or bus.
"Today’s news builds on the huge success of contactless payments on London transport, with the rapid uptake meaning it now accounts for one in seven of all contactless transactions in the UK."