Paper and mobile train tickets to be replaced with GPS tracking in new travel trial
(www.independent.co.uk)
The problem with it though is it would seem you still need another option available. Not everyone has a smartphone. Presumably they still want to service those people, so they have to provide some other option. The scan on/off system works for everyone, and it could easily be extended to busses. It'd work the same as a station, but you do it entering/exiting the bus.
I could see the issue with stations that don't have gates, but again, they should be trying to service everyone, including those without a smart phone. They have to add something to those stations I would hope and assume. It might as well be a scan point —which could be something besides a gate.