NFC TIMES Exclusive Insight – Transport for London this week was again trumpeting its move to open-loop fare collection with contactless credit and debit cards and applications on NFC phones–noting that contactless payments now accounts for half of all pay-as-you-go metro and rail rides in and around the UK’s capital.
That’s a little misleading since when adding in all of the journeys paid for with season tickets or offered for free to riders above and below a certain age and also for trips on other modes of transit, contactless accounts for 20% or less of total rides. Still, there is no denying that the transit authority’s big bet on contactless payments nearly six years ago is paying off.
Transport for London told its Customer Service and Operational Performance Panel last summer that the cost of collecting fares had fallen from 14.3% of revenue in the 2005-2006 fiscal year to 9.2% in 2015-2016. And it predicted that by the autumn of 2017, the cost of collecting fares would drop to 7%.