Transport for London (TfL) has inked a £15m licensing agreement with Cubic Transportation Systems (CTS), a business unit of Cubic Corporation, allowing them to deploy TFL’s contactless ticketing system across the world.
The contactless ticketing system enables travellers with a contactless credit or debit card to swipe it on card readers installed at stations and on buses, thereby allowing them to travel without a ticket.
The system computes the distance travelled by the passengers and slashes the fare amount at the end of each day.
London mayor Sadiq Khan announced that the proceeds earned through the licensing agreement will be used for a fare freeze for London's commuters for the next four years.
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.”
TfL chief technology officer and director of customer experience Shashi Verma 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.”