The deal includes the exclusive rights to place Oyster on Barclaycard and Barclays Connect Visa cards for at least the next three years.
In addition to working as an Oyster card, the new joint card features a chip and PIN function, as well as a contactless payment option for low-value transactions. The card will be the first integrated travel and contactless payment card in the UK.
The integrated technology allows cardholders to pay for low-value transactions by waving the card over a contactless reader. Barclaycard, in conjunction with Transport for London (TfL), TranSys and Visa, will be conducting a live trial of the new card product in London from the summer of 2007, with further plans to roll out the technology to its customers later in the year.
The ‘wave and pay’ technology reduces transaction times and is a more convenient way to purchase everyday items. The system is highly suited to retail outlets such as pubs, fast-food outlets and coffee shops.
Commenting on the deal, Antony Jenkins, Barclaycard’s chief executive, said: London has seen huge success with the Oyster card from TranSys and TfL – in much the same way as cards have transformed many other consumer payments, it’s difficult to imagine how we managed beforehand. Putting Oyster and Barclaycard together makes life even easier for Londoners and takes our customers an important step closer to fully contactless card payments elsewhere.
The involvement with Visa also brings distinct advantages, notably the universal acceptance of the branded card.