London's transport authority said the first phase of 'future ticketing' will involve the availability of contactless payment in partnership with Visa, MasterCard and American Express on the bus network in 2012. The new system would act as an alternative to Oyster cards.
"Once introduced, contactless payment using credit and debit cards would make London's public transport much more accessible to visitors (both domestic and international) who are not familiar with Oyster or who do not carry an Oyster card, but do have a contactless credit or debit card, even if that card was issued by an overseas bank," said Transport for London in a statement.
"This should increase London's attractiveness as a destination for tourism and business and its competitiveness with other world cities," it added.
TfL also revealed that it has been working with transport operators in major international cities to develop "common standards and systems" for the new plans. It said it wants to position London at the forefront of ticketing technology and expects to see this method of paying for travel "widely adopted" in the next few years.
"These technologies have the potential to propel us into a world where travelling around London can be easier and even more convenient for passengers. The mayor is continually looking for new thoughts and ideas and that includes contactless payment," Kulveer Ranger, the mayor's transport adviser said.
"This technology is now maturing and could enable people to pay for their travel using credit or debit cards resulting in a simpler process for the customer, and reducing commission and processing costs for TfL," he said.
Ranger described the evolution of the next generation of emerging technologies as a "big step" for the Oyster card.
"Any improvements we introduce would clearly need to deliver value for money but we are excited about the potential benefits there could be for the London commuter," he added.
The fare structure for credit and debit card payments will match that for the Oyster card, for which most fares are half the rate of the cash equivalent. A spokesperson said this should encourage people to use cards rather than pay cash.
In September UK transport minister Norman Baker said the government eventually wants to implement a national transport card, like London's Oyster, that can be used in different cities across the country.