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The fate of a transit card brand known to millions in the United Kingdom and elsewhere appears uncertain because of an early contract termination. Transport for London earlier this month said it would cancel the £100 million-a-year (US$186.3 million or 127 million euros) contract to run the Oyster fare-collection system. The contract with vendor consortium TranSys expires in 2010, five years early. The move came after at least two glitches that enabled some Oyster cardholders to ride subways for free. Transport for London says it wants to find cheaper ways to run the Oyster system, an effort that could involve putting the transit application on open-loop contactless payment cards (CardLine Global, 12 Aug.). Oyster cardholders make some 10 million transactions each day. TranSys "owns the Oyster brand and associated branding rights," a TranSys spokesperson tells CardLine Global. The spokesperson would not comment on speculation in the British press about whether TranSys would seek to retain the Oyster name or whether Transport for London faces an expensive court battle to gain those rights. "Transport for London will ensure the continuity of the brand in the future arrangements," a spokesperson for the agency tells CardLine Global.
