In August Transport for London announced plans, subject to consultation, to remove cash fares after they fell from 20 percent of journeys in 2003 to less than one percent.
Over the past decade passengers have increasingly adopted the capital’s Oyster smartcard system which offers cheaper fares than paying with cash.
TfL says recognising changing purchasing habits and axing cash fares will free up £24m per year which can be re-invested in the bus network.
In December 2012 TfL started accepting payment via contactless debit and credit cards and is expected to introduce this new payment method to Tube, DLR and London Overground services later this year.
The capital’s transport authority says this will see cash account for an ever smaller proportion of transactions.
According to TfL just a third of the 37,000 responses to its consultation backed the proposal to remove cash fares.
Objections to the plans included concerns that passengers could find themselves stranded if they lacked sufficient funds on the Oyster and that vulnerable passengers could find themselves stranded.
TfL says it will address these concerns by allowing passengers with less than the cost of a single bus fare (currently £1.45) but with a positive balance on their card to make one more bus journey before they have to add credit to their card.
It has also undertaken to review the spread of retailers offering Oyster top-up to see if additional locations are needed, and to ensure the capital’s 24,500 London bus drivers receive “refreshed guidance” on how to assist vulnerable passengers travelling without a valid ticket.
There will also be a public information campaign to increase awareness of contactless payment cards and Oyster pay as you go.
TfL insists the removal of cash fares “will not affect 99 per cent of bus passengers”.
Leon Daniels, Managing Director for Surface Transport said: “The decision to stop accepting cash fares on London buses reflects the changing way that people pay for goods and services in our city, including journeys on the bus network.
“We are introducing a range of measures, including a new ‘one more journey’ feature on Oyster cards, which will ensure that people can still make a journey and then top up their card when they don’t have the full fare.
“Paying with Oyster or a contactless payment card is not only the cheapest option, but also speeds up boarding times at bus stops and reduces delays. It costs £24 million a year to accept cash on London’s buses and by removing this option we will generate significant savings which, like all of our income, will be reinvested in improvements to the transport network.”
Caroline Pidgeon AM, Leader of the Liberal Democrat London Group on the London Assembly, said: “The long term decline in use of cash fares on buses cannot be denied. Nor can we overlook the fact that cash fares are a bad deal for passengers while at the same time are very expensive for provide to TfL.
“It does also seem that TfL have listened to some concerns raised in the recent consultation about these changes. I especially welcome the provision of a ‘one more journey’ feature on Oyster, as well as a review of the Oyster Ticket Stop network to see if additional locations might be necessary.
“However, I remain concerned about young people facing problems travelling on night-time buses if cash fares are completely ended this Summer.
“Ending cash fares might make sense on many bus routes, but I think a case for ending them on night-time bus routes has yet to be made.”
S. Wardrop says
February 3, 2014 at 8:23 amWhat would happens if you lose your Oyster Card and there was nowhere open to buy a new one?
Chiu says
February 3, 2014 at 10:32 am@S. Wardrop No bus for you then.
GET OFF THE BUS. AND FIND SOMEWHERE TO BUY ONE. OR WALK HOME. DON’T CARE HOW LONG IT IS.
scd says
February 3, 2014 at 12:06 pmWhy is everyone complaining about this move seem to be losing their oyster card but not their wallet? Surely 99% carry the oyster card in their wallet or purse so if they lose their oyster they will have lost their wallet or purse and so lose their cash as well? Or am i missing something?
Ashfield says
February 3, 2014 at 2:04 pmTFL to scrap cash bus fares? I must have missed Boris promising to retain them then. as this seems the usual way TFL policy is made.
Chiu says
February 3, 2014 at 3:37 pm@scd Yes you are. The NFC chip in my credit card and office pass interferes with the touch pad, hence the need to keep the Oyster card separately. Along with my forgetfulness, it is also why I am in possession of over 6 Oyster cards.
J says
February 3, 2014 at 4:35 pmNo mention of the current ridiculously high price of cash fares… that doesn’t figure into this story at all?
Nice ‘spin’.
Anita says
February 3, 2014 at 8:49 pmWomen tend to keep them in their handbag, even though they would be all cards would be separated – if the lose their handbag or have it stolen – what happens then?
Also not every bank offers or has sent out contactless payment cards to their customers, I have had a new bank card since the ‘contactless’ cards have meant to have come out yet I got the usual type through. The only people I know with one of these cards are the ones with a barclaycard credit card!
They will have to completely refigure the amount of top up outlets because a lot of the ones around me are only open til 7pm, it would be a good idea if you had top-up booths/posts a bit like you have in the railway stations in the places that are not near to stations or at the cashpoint.
Sue says
February 5, 2014 at 6:29 amI was totally against this proposal. I am particularly concerned at what would happen if your card was lost or stolen. As a lady often traveling alone I would like more information about how such vulnerable people will be assisted with onward travel in what would be already distressing circumstances (having lost a card).
Transport Insider says
February 5, 2014 at 6:43 amOyster card broken? Use your bank card…
(In reality vulnerable passengers will be allowed to travel for free. There’s an instruction not to leave vulnerable passengers stranded)
Rick says
February 5, 2014 at 4:20 pmIsn’t the key to speed up the time required to purchase a ticket on a bus?
Do believe that this can be carried out in phase, can we have a £5 cash fare with no change, not accepting any coins, and force the remaining 1% to switch to Oyster?
I do believe passengers who ask everyone to wait more than 5 seconds to sort out their ticket should be paying a penalty anyway.
Cllr David Durant says
February 6, 2014 at 6:55 amRetain cash fares on London Buses
TfL’s ‘London buses going cashless’ consultation document says it will save £24 million a year in operating costs by 2020.
And the same document says 60,000 passengers pay the extra £1 fare every day – although TfL’s Annual report says 85,000 passengers are paying the cash fare!
However if we settle for a figure of 70,000 this generates an income of £25.5 million a year and means the cash fare is already generating £1.5 million more income than the forecast saving in 7 years’ time!
And these figures are based only on the £1 extra fare, not the entire fare of £2.40, which @ 70,000 a day generates over £61 million a year.
In addition over £30 – 77 million in credit remains on the Oyster cards every year! So even if the costs of handling cash fares did rise above income, a small part of the credit on the Oyster cards could pay the difference!
In other words ‘London buses going cashless’ will lose TfL money and result in a poorer bus service, particularly for vulnerable people and in outer-London where cash fares remain high.
Cllr David Durant
London Borough of Havering
Gamit says
March 1, 2014 at 4:04 pmThe answer to this is for me now very simple…..don’t use London buses.
I think we can all agree that the whole point of buses is to be a convenient, quick and for some people alternative means (for those who are stuck) of getting from point A to point B.
Certainly those who say had lost their wallets containing their oyster/ debit card have a problem, but what about those who don’t travel very often and don’t have (or need or want) an oyster card?
For it to be a mandatory requirement to own an oyster card or own a contactless debit card to undertake such a simple menial task as getting a bus, seems just about the most stupid I have ever heard.