Shashi VermaDirector of Fares and Ticketing

Transport for London

Oyster Business Case

In the 1990s London Transport wanted:• Congestion relief from increased gate

throughput• Fraud reduction from over-riding, lost and

stolen passes, etc.• Reduction in number of tickets sold

Recent successes

• Oyster on national rail – Final stage launched on 2 Jan 2010– Goal was to bring all national rail stations in London within Oyster pay

as you go; extends benefits of PAYG to all of London– Added 250 stations to existing network– Total of 615 rail stations and 8,300 buses now on Oyster– Dramatic traffic build-up with 2m national rail journeys per week on

Oyster pay as you go

• Oyster on Thames river boats– Launched in November 2009– Rapidly built up 25% of river boat traffic on pay as you go

Current challenges

• Despite the visible success of Oyster, ticketing still represents a difficult business model

• Need to think from first principles about models for revenue collection

5

The future of money

Contactless bankcard and mobile payment platforms finally seem to be appearing on the market

EMV on transport

• Needs to be fast with transaction speeds under 500ms

• New transaction model for complex transport needs

• New security solution to comply with PCI-DSS• New back-office to aggregate taps and

compute fares• ... And new way for transport system to work

Current state

• TfL Board approved project in autumn 2010• New readers being installed• Back office in development in-house• Security solution being developed• Launch on buses before Olympics, rest of

system later in 2012• System open to other transport operators

Shashi VermaDirector of Fares and Ticketing

Transport for London