Frdric Prochasson - Fotolia
Transport for London (TfL) has licensed its contactless payment system to Cubic Transportation System in a contract worth £15m.
According to TfL, the licensing fee will help it to deliver a fares freeze that London mayor Sadiq Khan has announced across TfL services for the next four years.
TfL said the deal granted Cubic Transportation Systems the rights to adapt its contactless payment system for worldwide use.
The contract represents the first of a number of planned agreements Tfl has in the pipeline to sell or license its intellectual property to UK and overseas organisations expertise.
Khan said: “I made a firm commitment to sell Transport for London’s expertise around the globe. We will use the income from those deals for further investment in new infrastructure and to freeze TfL fares.”
Shashi Verma, chief technology officer and director of customer experience at TfL, said: “We’re delighted to have agreed this licensing deal with Cubic Transportation Systems to introduce our contactless payment system to other world cities.
“Contactless payments have completely transformed the way people pay for travel in London, and this deal will allow other world cities to benefit from the hard work we put into making the system work for our customers.”
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TfL’s contactless system has allowed over 500 million journeys to be paid for by more than 12 million unique credit and debit cards from 90 different countries, as well as contactless-enabled mobile devices. Around one in 10 contactless transactions in the UK are made on TfL’s network, making it one of the largest contactless merchants worldwide.
In July 2014, TfL signed a £660m 10-year contract with Cubic Transportations. Called Electra, the contract covers the maintenance and availability of ticketing and fare collection equipment on 8,500 buses, 1,900 ticket gates at London Underground and Overground stations, and 1,800 standalone validators.
Electra also covers the 1,600 ticket machines at 250 National Rail stations where card readers are located, along with 4,000 retail devices at Oyster ticket stops across the capital.
TfL recently appointed 12 companies – among them, Capita, CSC, Atos and CGI – for its IT systems framework contract, which is worth between £80m and £95m.