A £380m ($465.0m/€422.0m) contract for the processing of card payments across London's transport system is to be awarded next week.
Transport for London (TfL) will approve the successful bidder at a board meeting on November 8, according to Rail Technology Magazine.
The contract will cover credit and debit card payments with regards to ticket and Oyster sales, as well as the congestion charge and retail, online and telephone sales.
In total, the contract holder will process £60bn of revenue over the next decade, through a seven-year deal that can be extended for a further three.
The TfL board papers said the contract was longer to allow for the use of contactless payments, which were introduced on the capital’s bus services in 2012 and the rest of the network in 2014. This means that the new partner may have to invest in adapting its current retail contactless system to cope with a transit ticketing model, so the longer contract will allow it to turn a profit.
It is understood the successful bidder will be paid £18m by TfL, with the remainder of its income arising from Interchange and card scheme fees.
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