The merchant acquirer contract has been secured for a period of seven years, with an option to extend for an additional three years.
TfL chief technology officer Shashi Verma said: “Contactless payments have completely transformed the way people pay for travel in London, with more than 800 million journeys already made and around 1.8 million journeys being made every day.
“This new ten-year contract will help ensure these numbers continue to grow, while also providing support to allow us to develop our ticketing system even further.”
Under the renewed contract, the company will provide TfL with contactless payment services for the Elizabeth line, which would link Reading and Heathrow in the west to Shenfield and Abbey Wood in the east.
Barclaycard Payment Solutions managing director Paulette Rowe said: “We have used our five decades of experience in payments technology to help London become a world-leader in transport ticketing.
“The introduction of contactless payments has revolutionised travel in and out of the capital, making paying for journeys quicker and easier for both everyday commuters and the millions of tourists who visit the city each year.”
As part of the deal, Barclaycard worked in collaboration with TfL to offer a latest solution that would be compatible with the technology that TfL uses to charge for contactless journeys. Contactless payments for TfL services began in September 2014.
Every day, the cost of journeys are aggregated and checked against specially developed transit fraud and risk rules.
If applicable, the contactless payments are also capped at the cost of the daily or weekly travelcard in order to enable the travellers to pay the lowest available fare for their journeys.
Transactions are processed through the transit-enabled systems and the customer is charged for a single amount, while also price-matching the Oyster system.
Transactions are cleared displayed on the cardholder’s debit or credit card statement and the process does not require any topping-up.
Serving as the merchant acquirer of TfL, Barclaycard has processed more than 278 million contactless transactions in London every day, as well as across several modes of transport such as trams, DLR, London Overground, buses, and most national rail services.