Barclaycard, TranSys reach agreement for the use of card for public transport

British credit card and loan provider giant Barclaycard announced it will start offering debit and credit cards integrated with an Oyster card account, now being used as an electronic ticket on public transport services within London, after signing a three-year contract with TranSys, the consortium of the Oyster card.

This means that starting next summer, Barclaycard credit card and Barclays Bank Connect debit card holders will be able to use their plastics in paying for their rides through the use of swipe readers located throughout London's transport network.

Customers will be able to pre-load their “Oyster card” accounts with cash, as it is under the prevailing separate system, then fares will be deducted from the said balance instead of deducting them from their credit card or bank accounts.

The swipe method will be available at any seller who installs the machines which will read the cards. Barclaycard said that it will be working with Visa, the global credit card giant, in rolling out the machines to retailers in 2007.

Aside from being used in the London public transportation system, Barclaycard added the cards will also be used in coffee shops, fast food restaurants, bars and pubs, car parks and other retail outlets, reducing the need for customers to bring cash.

The said endeavour will initially be a multi-function contact-less debit or credit card in Europe, though the technology has already been in use in some parts of North America.

The new cards will be introduced in association with Visa Europe.