Trainline PLC (LSE:TRN) shares fell 1.5% on Tuesday after the government released an update on its plans for Great British Rail (GBR), which included a "powerful" passenger watchdog to hold rail companies accountable.
A consultation launched by the Department for Transport promised that its plans "will smash a broken rail system, put passengers at the forefront of all decisions made on the railways, ending major failures and disruptions like the 2018 timetabling crisis".
Creating GBR aims to "unite train and track" and end processes the department calls "outdated and inefficient", which it said has resulted in "poor performance, timetable chaos and complex fares and ticketing".
On ticketing, the government said one of the initiatives it is already working on ahead of the establishment of GBR is "simplifying fares and modernising ticketing".
This includes the rollout of Pay As You Go (PAYG) ticketing to give passengers the ability to travel more flexibly, as Transport Secretary Heidi Alexander mentioned in a recent speech.
Analysts at Peel Hunt said: "Our view is that there is nothing material in this statement for Trainline. However, given how the share price has reacted to similar GBR news, we remain cautious about the market's potential reaction."
They noted that Trainline has developed its own digital PAYG solution, and the Rail Delivery Group has invited the company into a consultation for dPAYG trials outside of London.
"While it is hard to say for sure, we believe it is likely the Government will leverage Trainline's expertise as part of the harmonisation between the public and private sectors it is targeting."
PAYG could use the 'contactless' system, which uses NFC technology in credit cards, mobile phones and the London Underground Oyster card system, or could employ the QR barcodes that are used by most train companies and Trainline's existing e-tickets.