Local Authorities can start adding additional services such as library and leisure centre services on a type of Oyster-style concessionary transport smartcard that was issued last year.

The smartcard networking forum, which represents local authorities, has announced that technical standards have been agreed, allowing authorities to press ahead with plans to add new services for the cards.

SmartCard Networking Forum (SCNF) treasurer Ron Hetherington, who works for Dudley Metropolitan Borough Council, said: "Local Authorities have been holding back on the development of new applications for their smartcards because of uncertainty about the de-facto industry standard. Now that this has been agreed, local authorities can push their smartcard strategy forward more confidently."

Concessionary transport cards were launched in England in April 2008 for the old or disabled, but there was little time for many local authorities to consider adding other applications meaning few cards are currently used for more than travel.

Now a new standard has been agreed, authorities can add any number of services to cards including parking credit, leisure centre and library access, as well as benefit entitlement and bike hire.

SCNF co-chair Steve Beecroft said: “This is good news in the current economic climate and SCNF anticipates some interesting and cost-effective uses for smartcards will be developed over the next few years."

The government is currently consulting on proposals that could see a smart ticketing system introduced nationwide for all members of the public, in which a single card would be carried and topped up rather than individual tickets being issued for journeys.

The Department for Transport estimates the initiative could save as much as £2.6bn per year through improved journey times and faster, more convenient purchasing and issue of tickets.