In this article, I will be discussing solutions to help TfL launch Oyster discounts and concessions on smartphones by transitioning to the contactless pay-as-you-go backend, avoiding the need for expensive hardware upgrades to existing Oyster readers.
Disclaimer: Bear in mind, I am not advocating for the Oyster card to be abolished.
Transport for London Freedom of Information release: 💳📲 TfL says digital Oyster needs reader upgrades and a viable business case. Apple Wallet integration has been considered, but no feasibility study has been completed. Reader upgrades could take 3–4 years. tfl.gov.uk/corporate/tr...
— CLondoner92 (@clondoner92.bsky.social) October 1, 2026 at 2:10 PM
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Sadiq Khan’s Manifesto Commitments
Taking a look through Sadiq Khan's 2024 Mayoral election manifesto, it says:"My other transport commitments include:
• Modernising TfL’s approach to ticketing. This will include: allowing concession holders to use their phones as their travel pass, instead of having to carry an Oyster card; working with the government to roll out contactless payment in stations outside London; and working to include National Rail discounts when contactless payments are used.
• Working with TfL to review our fares and ticketing system to ensure it continues to be world-leading and can meet the evolving needs of passengers. The way Londoners and visitors travel on public transport is changing, which means our approach to fares and ticketing must be more flexible and innovative."
Upgrading London’s Ticketing Backend
Because the Oyster smartcard has relied on a legacy backend system since 2003 (long before the widespread adoption of smartphones) and contactless pay-as-you-go was successfully introduced in the 2010s (starting with London buses before expanding to the Tube and national rail), TfL faces a clear strategic choice. As contactless PAYG continues to roll out across the South East of England and wider UK, Transport for London could transition away from the legacy Oyster backend, migrating user balances, concessions, discounts (such as ZIP cards), and staff passes to a modern contactless infrastructure.Currently, National Railcards (such as the 16–25, 26–30, Senior, and Disabled Persons Railcards) can only be linked to physical Oyster cards to receive discounted pay-as-you-go fares. Railcard holders cannot link their 1/3-off savings directly to a contactless bank card, Apple Pay, or Google Pay. Consequently, millions of passengers who qualify for rail discounts are forced to continue carrying and topping up a legacy Oyster card, rather than enjoying the convenience of tapping with their phone or bank card.
This transition would make it significantly easier for TfL to bring concessions, discounts, and Railcard integrations to smartphones by leveraging the contactless PAYG backend.
A physical smartcard option could be retained for passengers who prefer to keep their travel spending separate from their personal bank cards. This could involve establishing a new Oyster-branded smartcard running directly on the contactless PAYG system, alongside ITSO-compliant smartcards that function across various tubes, buses, light rail, and national rail services.
A major catalyst for this modernising shift is Transport for London’s multi-year ticketing contract awarded to Indra Group. Tasked with operating and overhauling TfL’s revenue collection infrastructure, Indra Group’s transition towards account-based ticketing provides the exact technical framework required to migrate Oyster to a modern contactless platform. Moving away from legacy systems to an account-based model will allow TfL to finally enable mobile Oyster passes, integrate digital Railcard discounts across smartphones, and streamline pay-as-you-go travel without forcing passengers to buy entirely new hardware.
A key international example is OMNY in New York City, United States of America, where the paper magnetic MetroCard was phased out in favour of the OMNY contactless PAYG system, which also provides reduced fares for low-income residents.
Towards a UK-Wide National Smartcard Scheme
With the overwhelming majority of bus services across Great Britain accepting contactless bank cards, the UK has a unique window of opportunity to establish a unified national smartcard scheme and integrated discounts across local, regional, and national services. This would mirror systems like the Leap card in Ireland, noting that contactless bank cards are already accepted on Translink services in Northern Ireland, allowing visitors from the Republic of Ireland to travel seamlessly without relying on Leap cards.The UK Department for Transport data shows contactless payments are on 95.8% of British buses, up from 38% in 2017. London leads at 99.3%, but Wales and Scotland have seen the fastest growth, both now exceeding 94%. The shift aims to improve boarding and journey reliability. https://t.co/rnRzyZA3ac
— CLondoner92 (@CLondoner92) December 22, 2025
Other UK regions also embrace digital and contactless ticketing:
• Greater Manchester: The Bee Network accepts contactless bank cards and app payments (though heavy rail integration remains separate).
• West Midlands: Birmingham and the Black Country support contactless on all National Express West Midlands buses, Metro trams, and select local rail/ferry links using Swift smartcards or direct contactless readers.
• Tyne and Wear: The Tyne and Wear Metro features POP PAYG card systems alongside widespread contactless gate integration.
• Other Networks: Nottingham’s NET Tram network, the Sheffield Supertram, the Cardiff & Valleys Metro, North Wales & Border lines, and Edinburgh Trams all support contactless payments. Glasgow Subway stations also fully accept contactless bank cards for touch-in and touch-out travel.
ScotRail similarly offers its Tap & Pay app alongside reusable Smartcards for automated PAYG fare capping.
This creates a golden opportunity for the Department for Transport, Transport for London, Transport for Greater Manchester, and other regional transport authorities to merge these disparate systems into a cohesive national framework. Doing so would improve passenger convenience while ensuring users can manage travel balances separately from their primary bank cards if they choose.
I do say, as fuel companies offer businesses "fuel cards" to provide discounted fuel for their vehicles. https://t.co/lzU11315gI I'd like to see banks, companies, etc. issuing their own 'smartcards' to consumers, workers, etc. to provide cheap/discounted public transport travel.
— CLondoner92 (@CLondoner92) March 7, 2023
Across the globe, several countries operate unified public transport payment networks alongside the Netherlands’ OVpay system and OV-chipkaart smartcard:
• Singapore: Uses the SimplyGo system for direct bank card tap-and-go alongside its national EZ-Link card.
• South Korea: Relies on nationwide smartcards such as T-money (which are also integrated directly into local bank cards).
• Japan: Features ten major, nationwide interoperable IC cards (including Suica and Pasmo) alongside expanding open-loop bank card readers.
• Switzerland: Operates the nationwide SwissPass and the GPS-based Fairtiq/EasyRide tap-and-pay app.
• New Zealand: Is rolling out its unified Motu Move system for both contactless bank payments and smartcards.
• Argentina: Runs the nationwide SUBE smartcard across its urban transport networks.
Retaining Physical and Accessible Alternatives
Finally, moving towards digital infrastructure should not mean leaving vulnerable passengers behind. I do not advocate for paper tickets to be completely abolished, as they remain essential for disabled travellers, those who are digitally excluded, and international tourists. I published an article exploring this topic last year, and paper One Day Travelcards continue to be sold through TfL's official visitor shop.I would like to extend an invite for you to follow me on X (formerly Twitter) for transport-related updates. You can find me by searching for @CLondoner92 or by clicking on the direct link to my X page here. I am also present on BlueSky and Mastodon. I look forward to connecting with you on these platforms. Thank you for your support.