Transport for London, the government agency in charge of city's rail and bus systems, plans to introduce contactless payments for rail customers in mid-September.

Under the new system, customers will pay their fares by touching their credit or debit card to a contactless card reader. The system will not replace the prepaid Oyster fare card.

"Offering the option of contactless payments will make it easier and more convenient for customers to pay for their travel," said Shashi Verma, director of customer experience at Transport, in a July 25 press release.

The new payment option will be available on the Tube, London Overground, DLR and trams. Transport for London also piloted the system in April with customers on the London Underground network. Contactless payments have been supported on the city's bus system since December 2012.

Most UK-issued credit cards that include the contactless payment symbol, as well as certain mobile devices, will be accepted. All fares paid on a given day will be bundled into a single charge when sent to the passenger's bank, and passengers can see ride-by-ride detail online.

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry