Manchester is to become the first UK city outside London to get an Oystercard-style travel payment system.

Greater Manchester Passenger Transport Executive (GMPTE) has signed a contract with operator sQuid to deliver a pre-paid transit smartcard service.

The service will be piloted in Bolton before a wider rollout, according to sQuid managing director Adam Smith.

"Our philosophy is to make electronic payments a flexible, responsive and cost-effective service for our customers, for merchants and for transport operators," he said.

At the first stage of the rollout transport payment capabilities will be added to 30,000 existing smartcards issued by Bolton council for payments in leisure complexes and libraries.