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Project Oval: TfL win DfT contract to expand contactless system to 233 rail stations by May 2024, Railcards coming to contactless payment cards

JaJaWa

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TfL have won the DfT's contract to expand their contactless payment system to 233 rail stations by May 2024, which also includes the requirement to allow Railcards and concessionary discounts to be added to contactless payment cards

Screenshot 2023-09-25 at 04.20.27.png

Phase 1
  • Contactless payments in 53 stations – majority due by the end of 2022.
  • Full-fare, Adult PAYG travel using contactless payment cards and mobile devices across the South East, fully integrated with TfL’s existing scheme.

Phase 2
  • Contactless payments in 180 stations – majority due by May 2024.
  • Enable discounted PAYG travel for National Rail concessionary customers.

Announcement by TfL:
Shashi Verma, Chief Technology Officer at TfL said: “Our pay as you go with contactless system has helped revolutionise the ability to pay for travel, and is now used in a number of cities across the world. We have recently been selected as the Department for Transport’s (DfT’s) preferred partner to deliver an initiative to expand pay as you go on rail services across the South East. This will both help rail customers outside London travel more flexibly and conveniently, and support the wider economic recovery of the South East through easier access to rail travel. We are now working closely with the DfT on an implementation plan and hope to provide further details in due course.”

Details of contract:
The Rail Group's Passenger Services Directorate within the Department for Transport ("DfT") is planning the expansion of Pay As You Go (PAYG) rail ticketing in the South East of England, following publication of the Williams-Shapps Plan for Rail.

Following a consultation held in 2019, the DfT settled on an expanded geography that will see circa 233 new stations converting to a new EMV based contactless payment system.

The Government's timetable for implementation requires the majority of the extension stations to be delivered by May 2024, with extension of PAYG to all stations completed by the end of 2024.

The contactless payment system will also need to seamlessly integrate with the existing Transport Trading Limited ("TTL")/TOC CPAY area in order to allow passengers to travel to/from London using a single tap in/tap out with their bank card

TTL is a wholly owned subsidiary of Transport for London ("TfL").

The project therefore requires a technical solution that can be deployed and integrated successfully within the existing operating environment to achieve the DfT's required objectives.

The DfT is publishing this transparency notice to inform suppliers of its intention to grant funding to TTL for the delivery of a new EMV-based contactless payment system across circa 233 stations in the South East of England. TTL will deliver the required PAYG solution, subcontracting the provision of on-station validation equipment to Cubic Transportation Systems Limited ("Cubic"), a provider of PAYG services to TfL under the existing Revenue Collection Contract.

Entry into the contract will take place following a period of at least 30 days from the date of publication of this notice.
Source: https://bidstats.uk/tenders/2021/W49/764543468

Further details of the award:
Over 230 mainline rail stations around London are to be brought into Transport for London’s contactless payments system over the next couple of years, under an agreement with the Department for Transport (DfT).

Following an initial consultation back in 2019, a year ago, the DfT decided that around 233 stations would be upgraded to accept contactless payments to allow customers to travel to/from London using a single tap in/tap out with their bank card, and put out a tender to suppliers. The upgrade is part of the Williams-Shapps Plan for Rail that aims to make it simpler to catch a train without the hassles of selecting which sort of ticket a person should buy in advance in order to avoid paying more than they should.

The map below was the suggested coverage expansion in the 2019 consultation, although the consultation also includes options to expand further to Brighton, Oxford and Milton Keynes. As it’s the consultation map, it may not match the final rollout plans.

As TfL already runs a large contactless payments system that offers what the DfT is looking for, it’s understandable that TfL won the contract. Although TfL is carrying out the work, the project’s roughly £68 million cost is being fully covered by the DfT at no cost to TfL, who will be subcontracting the provision of in-station validation equipment to Cubic Transportation Systems, who already provide the same kit to TfL.

The list of stations being included in the southeast of England rollout will be announced by the DfT in the next few months, but due to the scale of the work, the expansion of contactless payments has already been decided to be split into two phases:
  • Phase 1 – Contactless payments in 53 stations – majority due by the end of 2022.
  • Phase 2 – Contactless payments in 180 stations – majority due by May 2024.
The decision about which stations are in phase one or phase two will be mainly down to which are easier to deliver to, such as stations that already have validation equipment in them and the existing fares structure, and discussions with the train companies involved.
There are also two phases to the payment options being rolled out:
  • Phase 1 – Full-fare, Adult PAYG travel using contactless payment cards and mobile devices across the South East, fully integrated with TfL’s existing scheme.
  • Phase 2 – Enable discounted PAYG travel for National Rail concessionary customers.
Shashi Verma, Chief Technology Officer at TfL said: “Our pay as you go with contactless system has helped revolutionise the ability to pay for travel, and is now used in a number of cities across the world. We have recently been selected as the Department for Transport’s (DfT’s) preferred partner to deliver an initiative to expand pay as you go on rail services across the South East. This will both help rail customers outside London travel more flexibly and conveniently, and support the wider economic recovery of the South East through easier access to rail travel. We are now working closely with the DfT on an implementation plan and hope to provide further details in due course.”

The expansion work with the DfT follows on from the recent expansion of pay as you go with contactless to GWR branch line services to Henley on Thames, Windsor and Eton Central and, from later this month, to Bourne End and Marlow.

Due to the older technology used, the expansion will not include Oyster cards, just the newer bank card-based contactless payments. That mirrors the way the Elizabeth line was extended to Reading, with Oyster only working as far as the edge of Zone 6, after which only bank card contactless will work.
The original consultation also suggested that in some cases, contactless payments could also extend to local transport services such as buses, although this is not a major focus of the programme at the moment.

Similar schemes are also being rolled on South Western Railway and Transport for the North.
Source: https://www.ianvisits.co.uk/articles/tfl-to-expand-contactless-payments-outside-london-54582/

More details from the original consultation:
Integration
Passengers would be able to travel seamlessly between all rail services in the area and on the TfL network, all using the same PAYG ticket or account. In some cases, a PAYG scheme could also extend to local transport services such as buses, although this is not the primary focus of our proposals.
Fares
We will consider changes to fares where this helps passengers gain the benefits of PAYG travel, making them simpler and more reflective of modern travel preferences, and potentially introduce a cap on daily or weekly fares.
Technology
No decisions have been made. A number of options are available, including using dedicated transport smart cards, contactless bankcards, to 'tap' at different points on the network and allow the computer to work out the best fare. New technology based on mobile phones could remove the need to 'tap' on dedicated readers.
Other ticketing options and mobile ticketing
Passengers would still be able to buy tickets in advance. The Government's recent £80m investment in smart ticketing means that a smart ticket option will be available across almost all of the rail network. For single and return fares this is often likely to be a barcode ticket which passengers can print at home or display on their mobile phone. Technology already exists to allow mobile phones to store bankcards, which means mobile phones can be used with TfL's Contactless system. Similar technology is being trialled that could allow mobile phones to store dedicated transport smart cards. This could allow mobile phones to work with PAYG systems based on dedicated transport smart cards as well.
Passengers without a bank or credit card
The PAYG roll out plan, following this consultation, would need to ensure that the choice of technology does not inadvertently exclude some sections of society. For instance, you currently need a bank card or credit card to use TfL's Contactless system. Instead, for passengers without access to these, the Oyster system is available. We do not currently have plans to withdraw paper tickets.
Discounted fares
The PAYG roll out plan, following this consultation, would need to ensure that the choice of technology is able to offer discounted fare schemes. For instance, it is not currently possible to apply a concessionary discount to travel made using TfL's Contactless system. Instead, discounts can be applied to Oyster cards, or special Oyster cards are issued for passengers who are eligible for discounted travel.
Penalties for not 'tapping out'
Assuming the system adopted requires passengers to tap at the start and end of their journey, there is a risk that a small minority of passengers might try to 'cheat the system' by not tapping their card or phone. This simply means that other law-abiding passengers have to pay more, and is unfair. To encourage all passengers to tap in and out, we propose that there would be a maximum fare for not tapping out. On the other hand, passengers might simply forget to tap their card or phone at a free-standing card reader on the station. To address this, (a) every effort would need to be made to identify the 'missing tap' and (b) the maximum fare should be reasonable and applied with a significant amount of discretion.
One-click compensation
Since a core feature of most modern PAYG ticketing systems is the facility to use location information (e.g. from 'taps') to identify what trains a passenger has taken, there is a good opportunity for PAYG travel to speed the introduction of 'one-click' compensation. The c2c franchise is able to offer automated compensation arrangements already for registered smart card users: as a fully-gated network, passengers using smart cards already have to both 'tap in' and 'tap out'.
Source: https://assets.publishing.service.g...ta/file/776998/payg-rail-consultation-doc.pdf

See also: Project Proteus: New features in TfL revenue collection tender
 

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plugwash

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Not really surprising, trying to run two different contactless PAYG schemes at the same stations would be a nightmare for everyone involved, and I would think a very significant portion of rail travel in the south east involves London.
 

JonathanH

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Is that map actually from the original PAYG consultation or the definitive extension of PAYG? In the thread where this has been discussed for a while, the boundary has been suggested to be slightly further out on some lines.

https://www.railforums.co.uk/thread...kets-in-south-east.223610/page-5#post-5358315 refers.

Phase 1
  • Contactless payments in 53 stations – majority due by the end of 2022.
  • Full-fare, Adult PAYG travel using contactless payment cards and mobile devices across the South East, fully integrated with TfL’s existing scheme.
PAYG is already valid at over 40 stations outside the London / TfL boundary. The big call with these stations is whether the current fare structure is removed at the end of 2022 for journeys within the expanded Contactless area or whether they wait until 2024.
 
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matt_world2004

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My understanding is that tfl plan on releasing something similar to oyster which would allow Railcards to be stored but work over the entire contactless region. By having a touch in store. Token on the new card and the calculations done by the back office office system

There would also be an industry wide passenger demand monitoring system using tfls odx technology. Which would be calibrated by using loadweigh data on some types of rolling stock
 

JonathanH

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Railcards - about damn time!
There is no guarantee that it will include all railcards of course - eg Friends & Family, Two Together would be near impossible to implement and it would also be a very convenient point at which to bin off the Network Railcard for journeys in the relevant Contactless area (which has some of the same issues about discounts for fellow travellers and the minimum fare issue).

The current Oyster implementation doesn't allow (almost all) railcards to discount peak fares and that approach would reasonably be extended to this.
 

Snow1964

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I know the map is not to scale, but the boundary seems to zig zag all over the place.

I haven checked exactly but boundary seems to be about 30-45 miles from central London, and what I can’t figure out is why places about 35-40 miles are treated so inconsistently. Can anyone explain logic of boundary choice
 

swt_passenger

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I know the map is not to scale, but the boundary seems to zig zag all over the place.

I haven checked exactly but boundary seems to be about 30-45 miles from central London, and what I can’t figure out is why places about 35-40 miles are treated so inconsistently. Can anyone explain logic of boundary choice
The boundary is generally, but not always, where suburban service groups terminate. Another possibility is that they’ve used an obvious orbital route as a boundary, an example of this would be the North Downs line Reading to Gatwick. People had previously highlighted that as already having contactless at both ends, but not on the route itself.
 

JonathanH

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The map is from the consultation and informed posters in the thread I linked above have indicated differences in the actual boundary being considered (with zig zag boundaries).
 
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Presumably if a guard or ticket inspector checks that you have tapped in (using a mobile scanner), then the system will have a better idea of which route you are taking and can adjust the fare accordingly.
 

Watershed

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The current Oyster implementation doesn't allow (almost all) railcards to discount peak fares and that approach would reasonably be extended to this.
I don't think that would be reasonable at all; disallowing Railcard discounts at peak times was arguably OK when Oyster just covered journeys within Zones 1-6. The level of fares meant that with the £12 minimum fare rule for 16-25/26-30/HM Forces/Veterans Railcards, there was never previously a discount on paper tickets. Similarly with the "not before 09:30 in NSE land" rule for Senior Railcards.

But with Oyster/contactless now being expanded to cover a much larger area with much higher fares, this definitely needs a rethink. There are a decent number of people who live sufficiently far out from London that an SDR can be fully discounted using a Railcard, and where this is cheaper than using a season ticket (even for a 4 or 5 day a week commute). For example Stevenage, Woking or Chelmsford to London, all very typical and reasonable commutes.

Abolishing the ability to get this discount would potentially represent a 50% increase in the cost of commuting for these people. I'm happy to accept that people will roll over with a 5 or 10% increase in fares (e.g. through abolishing Thameslink only fares), or where fares are generally very low anyway (e.g. the significant hike in Zone 2-6 etc. TfL fares in the last few years). But not when their commute, already costing well into the hundreds per month, increases by up to 50%.
 

JonathanH

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But with Oyster/contactless now being expanded to cover a much larger area with much higher fares, this definitely needs a rethink. There are a decent number of people who live sufficiently far out from London that an SDR can be fully discounted using a Railcard, and where this is cheaper than using a season ticket (even for a 4 or 5 day a week commute). For example Stevenage, Woking or Chelmsford to London, all very typical and reasonable commutes.
OK, but where do you draw the line? Are fares in London, which are obviously widely accepted, going to start having reductions for railcards at peak times or is there going to be a cliff edge where railcard discounts are given from stations outside Zone 6 but not elsewhere?

We know there will be winners and losers from the expansion of Contactless PAYG and that the Treasury will only sign off on a plan that is revenue neutral or better.

Even with peak fares not discounted, the people you mention who currently benefit from railcard discounts at peak time may find an undiscounted peak fare single in the morning and a discounted off-peak fare single in the afternoon (after 7pm) cheaper (or vice versa travelling in the morning before 6.30am) than what they are currently paying.

Some people may have a 50% increase in costs (perhaps more) but there are instances of that happening when certain fares are withdrawn even now. So long as the overall impact is close to neutral those whose costs increase may not have sufficient voice to be noticed.
 

Watershed

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OK, but where do you draw the line? Are fares in London, which are obviously widely accepted, going to start having reductions for railcards at peak times or is there going to be a cliff edge where railcard discounts are given from stations outside Zone 6 but not elsewhere?
Well the easy solution would be for this simply to be an additional option on top of the current 'paper' fare structure. In the same way as smartcards are an additional option on top of paper tickets.

But equally who is to say that there can't be a cliff edge? That already exists in all sorts of places, for example single fares from Ashford (Surrey) vs Feltham to London. There will always be a cliff edge somewhere, even if that's just at the boundary of where this expanded PAYG scheme is.

We know there will be winners and losers from the expansion of Contactless PAYG and that the Treasury will only sign off on a plan that is revenue neutral or better.
Of course. But whilst there are many things that they will probably get away with pushing through, I'm not sure this is one of them. The optics are hardly great - "government hikes commuter fares by 50% amidst cost of living crisis".

Even with peak fares not discounted, the people you mention who currently benefit from railcard discounts at peak time may find an undiscounted peak fare single in the morning and a discounted off-peak fare single in the afternoon (after 7pm) cheaper (or vice versa travelling in the morning before 6.30am) than what they are currently paying.
Most people are not interested in leaving home at 6am or getting back at 8pm. They don't want to make their commute take up even more of their day. This is exactly the kind of "whataboutery" you would expect the DfT to engage in, if challenged!

Some people may have a 50% increase in costs (perhaps more) but there are instances of that happening when certain fares are withdrawn even now. So long as the overall impact is close to neutral those whose costs increase may not have sufficient voice to be noticed.
It's fairly rare though and only applies to individual flows. Whereas this would be an issue potentially affecting hundreds of thousands of commuters.
 

Starmill

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Why is Edenbridge included but Edenbridge Town is not included?
The map in the IanVisits article is wrong. It's from the 2019 consultation not the 2021 contract awarded to Transport Trading. Places like Bedford will be included for example.
 

JaJaWa

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The map in the IanVisits article is wrong. It's from the 2019 consultation not the 2021 contract awarded to Transport Trading. Places like Bedford will be included for example.
There’s another map in the consultation with a wider ‘ring’ around London at that level – is that one more accurate?

(Suppose I could just count which one is closer to 233 stations!)
 

JonathanH

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There’s another map in the consultation with a wider ‘ring’ around London at that level – is that one more accurate?
The previous discussion that I linked to above indicated it was somewhere in between so included Brighton but didnt go beyond Guildford for example - see posts by 'hwl', but I don't think there is anything in the public domain at this time.
 
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urbophile

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Meanwhile Merseyside (and doubtless many other places outside the magic circle) are stuck with a dysfunctional system of incompatible tickets and operators. Levelling up? As if.
 

swt_passenger

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But only one person per contactless card - as the next sentence explains:
“You can pay for someone else's travel with your contactless card or device if they're travelling with you. You need to pay for your own travel with a different card or device.
 

Roast Veg

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The boundary is generally, but not always, where suburban service groups terminate. Another possibility is that they’ve used an obvious orbital route as a boundary, an example of this would be the North Downs line Reading to Gatwick. People had previously highlighted that as already having contactless at both ends, but not on the route itself.
It seems odd that Tonbridge to Maidstone excluded, where Strood to Maidstone and Redhill to Reading are not.
 

TUC

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But only one person per contactless card - as the next sentence explains:
“You can pay for someone else's travel with your contactless card or device if they're travelling with you. You need to pay for your own travel with a different card or device.
So how will that work with thevDisabled Persons Railcard which is valid for two people? The railcard will only be linked to one payment card as who the companion is may vary from journey to journey.
 

Bletchleyite

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So how will that work with thevDisabled Persons Railcard which is valid for two people? The railcard will only be linked to one payment card as who the companion is may vary from journey to journey.

It doesn't have to work with everything. If it doesn't work for you, buy a paper ticket or e-ticket.
 

Wokingham

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It doesn't have to work with everything. If it doesn't work for you, buy a paper ticket or e-ticket.
In this case and the two together card can't the presentation of both the railcard and a valid tap in work.

In Auckland NZ they have a really great product called AT Hop I will check again how that works

At busy stations used to see people queuing to leave that was a bit crap, those stations not gated but busy enough will be backwards step queue for in and out unless someone finds a better value company than cubic will be millions

The gate computers already can't cope with e tickets
 
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JonathanH

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Tap2Go (and Keygo) is already valid at many stations where contactless is currently accepted, so it shouldn't affect it.
You could however imagine that there would be a change in the fares within the new Comtactless area to single fare pricing though along the lines of the London model.
 

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