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(Pocket-lint) - Transport for London has announced that London's Tube network will accept contactless payments from 16 September. London's Overground, DLR and Tram networks will also support the payment system. Buses do already.

That effectively means that you can ditch your Oyster card and use a contactless payment card or smartphone with NFC on all TfL services from that date. The fare will be taken from your bank or credit card directly.

Contactless payments will work in the same way as pay as you go Oyster cards. Customers will be charged the fare by touching in and out on the readers at the start and end of a journey (apart from on buses, where you touch once).

In much the same way as the existing Oyster system, fares will be capped by either TfL's daily or Monday to Sunday caps. The system will automatically calculate the best value contactless fare over the course of the week. Only one charge per day will be taken and will be marked clearly on bank statements as payment to TfL for travel.

Oyster cards will still be required for season passes, such as a set period Travelcard which could cost less in the long run.

The new system has been piloted successfully by around 3,000 customers since April.

READ: London Tubes next to accept contactless and smartphone payments instead of Oyster

Networks, such as EE with its Cash on Tap app and payment system, will also have means to pay through an NFC capable smartphone. EE's Cash on Tap for Android gives customers the opportunity to add funds into a digital wallet and pay for items using their phones, including TfL services come 16 September.

Writing by Rik Henderson. Originally published on 25 July 2014.