Mobile contactless payments not on the cards for TfL

[caption id="attachment_2050" align="alignright" width="250"]Mobile contactless payments not on the cards for TfL TfL collects over £3 billion in revenues a year[/caption]

Matthew Hudson, head of business development at Transport for London (TfL) has said that he is ‘not convinced’ about contactless mobile payments using Near-Field Communication (NFC) on buses and the Tube mainly because there are too many stakeholders such as banks, retails and mobile network operators, who would fight for a share of the revenue.  Currently, TfL collects over £3 billion in revenues a year, and about £400 million a year is spent on revenue collection.

According to Hudson, who was speaking at a Westminster eForum on the future of digital payments: “How much money is there to make with all these parties trying to get a piece of it?… We’ve just sat back and said we’re not interested. When you’ve worked it out come back to us and we’ll engage.”

Another issue he pointed out was that customers would not know which one of these stakeholders to contact if they had trouble with the service, which may make them hesitant to try the technology.

There are currently 52 million Oyster cards in circulation and TfL is the largest contactless card issuer in the UK. It is possible to pay bus fare using contactless bank cards on 8,500 London buses and TfL intends on extending this service to the Tube by November.

Related reading

Anonymous crowd of people walking on city street