My understanding is that contactless payment should now be accepted on all services fast and slow between London and Reading. However, GWR▸ (Great Western Railway) website is not particularly clear on this, and I'm finding that neither ticket office staff at Reading nor many train managers on long distance services have any understanding of this. Repeated advice I've received at Reading ticket office is that contactless is only valid on TfL» (Transport for London - about) services, while I've now faced two rather bemused train managers on long distance GWR services who have had to ring their control for advice on what to do when I explain why I'm travelling without a ticket.
Using contactless to travel between Reading and London costs £24.40 peak and £10.60 off peak. The equivalent peak or off peak return paper tickets cost £48.90 and £21.20 so using contactless both ways will save you 10p on the paper tickets. However while a paper peak single ticket is a bit more than half a return at £25.90, a paper single off peak costs £21.20 only 10p less than the return. This means some much bigger savings are possible if you want to travel in the peak in one direction and off peak in the other, as using contactless you can buy a combination of peak and off peak tickets for £35, whereas doing the same for paperless costs £47.10. For someone like me who commutes occasionally into London and generally goes in early and back late this provides a nice saving.
To add the confusion, the definition of peak and off peak is different for contactless and paper tickets. In the evening from London, going contactless you are charged peak fare on any service if you tap in between 16:00 and 19:00, whereas an off peak paper ticket allows you to travel on a whole host of stopping services (mainly the TfL services) during this time.
This means one can now see a small group of wised up travellers loitering by the gate line at Paddington wanting to catch the 19:02 fast train to Reading, who all tap in as soon as the clock ticks past 19:00 and then run down the platform to jump on the train for £10.60. Meanwhile those with off peak paper tickets have to stand and watch or pay £25.90 for a peak single.
https://www.gwr.com/plan-journey/tickets-railcards-and-season-tickets/contactless-payment