Transport for London (TfL) has extended its payment solution contract with debit and credit payment services provider Barclaycard for up to 10 years.
The contract has been extended for seven years, with an option to extend it for another three years. The new contract also includes the introduction of contactless payments for the upcoming Elizabeth Line, which is expected to commence operation in late 2019.
The two companies have been working together for more than two decades and as the merchant acquirer for TfL, Barclaycard claims to have processed over 278 million contactless transactions for journeys made on bus, tube, tram, DLR, London Overground, TfL Rail, Emirates Air Line, River Bus and most National Rail services in London.
In order to facilitate contactless payments on London’s transport network, Barclaycard says that it has developed a new solution which is compatible with how TfL charges for contactless journeys. At the end of the day the cost of journeys are aggregated and checked against specially designed transit fraud and risk rules.
Wherever applicable, the transactions are also capped at the cost of the daily or weekly travelcard, to ensure that customers always pay the lowest available fare for the journeys they make.
These transactions are processed by Barclaycard’s transit enabl systems and the customer is billed with a single amount, while matching the price with the Oyster System.
Transactions which appear on the cardholder’s debit or credit card statement are clearly identified and, unlike Oyster, no topping-up is required.
After contactless payments were first introduced in 2014, the number of transactions made using ‘touch and go’ are claimed to have grown exponentially. It is now estimated that almost 4 in 10 transactions are being done through Pay As You Go (PAYG) journeys and the numbers are growing as commuters find it easier to use the new technology.
Transport for London chief technology officer Shashi Verma said: “Contactless payments have completely transformed the way people pay for travel in London, with more than 800 million journeys already made and around 1.8 million journeys being made every day.
“This new 10-year contract will help ensure these numbers continue to grow while also providing support to allow us to develop our ticketing system even further.”
Barclaycard Payment Solutions managing director Paulette Rowe said: “We have used our five decades of experience in payments technology to help London become a world-leader in transport ticketing.
“The introduction of contactless payments has revolutionised travel in and out of the Capital, making paying for journeys quicker and easier for both everyday commuters and the millions of tourists who visit the city each year. We’re looking forward to embarking on the next phase of our partnership with TfL to roll-out a range of new technology initiatives in London and beyond.”
Apart from Barclaycard, other contactless payment providers accepted by TfL include Oyster, Apple Pay and Samsung Pay.