TfL to replace Oyster with mobile phone-based or bankcard-based ticketing systems

TfL recently ended its contract with Oystercard supplier consortium TranSys and is currently looking into options to replace the Oyster. TfL is also investigating the integration aspect of the potential ticketing system in other transport areas such as riverboat services. The Oyster brand could be completely eliminated should the smartcard be replaced, TfL representatives added.

The GBP 100 million-a-year contract between TfL and TranSys Consortium was originally for 17 years, but TfL decided to exercise a break clause in the agreement and terminate it in 2010, citing cost cutting and dramatic changes in the London transport system over the past decade. It is not known whether TfL has already started the selection of new vendors, recent developments signal that the two parties will be faced with managing a difficult relationship over the next two years.

TfL was apparently close to signing a deal with Cubic, a member of the TranSys Consortium, at the same time as the contractual break with TranSys was announced. The deal was blocked by the other major member of the consortium EDS who has legally restrained Cubic from taking over the running of the entire Oyster System. Cubic has, however, brokered a deal with TfL that will allow the former to run the system if the restraining order will be lifted, according to a Cubic Securities and Exchange Commission (SEC) filing.

Last December, TfL was the first to launch a NFC pilot in the UK, in partnership with Barclaycard, Nokia and O2, using 500 mobile handsets incorporating Oyster smartcard technology. After signing an exclusive deal with Cubic, Barclaycard has also launched OnePulse, the three-in-one card featuring Oyster travelcard, credit and contactless payment functions last year. Barclaycard revealed it planned to issue over one million contactless cards during 2008.