London Tube Accepting Mobile Payments by September 2014

Mobile payments, or “contactless payments” as they’re called in the UK, have been accepted through the London bus system since December 2012. Approximately 825,000 bus riders have used mobile payment options for 17 million journeys. Transport for London(TfL) announced that on September 16 the same feature will allow entrance at the Tube, Overground, DLR stations and later will expand to suburban rail routes where the Oyster card is currently accepted.

Pilot programs involving 3,000 Underground riders have been ongoing since April. The TfL website reports this program has accounted for 65,000 journeys a day being made with mobile payments. Continued testing of the system is planned before its September launch.

The benefit of a bank card over the current Oyster system is that it relieves riders of the added task of refilling their card to gain subway access. TfL states that mobile payments such as credit, debit, charge or pre-paid cards or devices work the same as Oyster; charging the fare by touching in and out on the readers at the start and end of every journey.

TfL Director of Customer Experience Shashi Verma applauds the move towards added convenience. “Offering the option of contactless payments will make it easier and more convenient for customers to pay for their travel, freeing them of the need to top up Oyster credit and helping them get on board without delay.”

Mobile service provider EE was quick to jump on the news. The carrier’s Cash on Tap app will work in London’s transport network on the launch date. Other companies expect to compete for payment app access as Vodafone is also said to be working with TfL, and O2 was testing mobile payments in the Tube as far back as 2008.

Transport for London’s press release provided the following takeaways:

• New payment options mean customers no longer having to check and top up their Oyster balance
• ‘Daily’ and ‘Monday to Sunday’ fare capping will automatically calculate the best value for contactless travel
• All UK issued contactless American Express, MasterCard or Visa credit, debit, pre-paid or charge payment cards will be accepted. Other methods of contactless payment that meet financial industry standards, including mobile phones, may also be accepted.

The TfL explains there will be a daily charge sent to the user’s bank or financial provider. Registered customers will be able to view their journey and payment history via their TfL online account.

Riders are reminded to use only one card at a time to avoid ‘card clash’ which blocks transactions if two cards are read simultaneously, or when a card not intended for use is charged. Since February, TfL has run a testing campaign to reduce incidents of card clash and expects to see a smooth launch come September.

Mobile payment integration has been on the minds of major city planners for nearly a decade. Here we see London taking an innovative step to modernizing one of the world’s most famous transit systems. How long before we see the same implementation throughout the US?