Cubic Transportation Systems, a business unit of Cubic Corporation, has announced a technology licensing agreement with Transport for London to license EMV contactless chip card and mobile device payment acceptance and account-based systems to other transit agencies worldwide, according to a press release.

Under the agreement, Cubic Transportation Systems was given the right to adapt London's contactless payment system, developed by Transport for London, and combine it with Cubic's own comprehensive NextCity suite of revenue and fare management systems to provide the best features of both. The deal, worth up to $20 million was announced in London last week.

"We believe the TfL deal is not only strategically significant for our transportation business, but will also deliver superior value for our customers and gives us a significant competitive advantage in upcoming fare collection procurements," said Bradley H. Feldmann, president and CEO of Cubic Corporation.

Transit agencies can choose to create their own back-office systems or use existing technology from Cubic, but by using the combined technology from Cubic and TfL, they reduce risk, cost and time-to-market.

"Access to TfL's technology gives us a major competitive advantage as the transit sector continues to move in the direction of open and mobile payments and account-based systems," said Matt Cole, president of Cubic Transportation Systems. "Now we can blend the best elements of technology that have been proven at scale in the world's two largest open and account-based payment transit systems — London and Chicago — both delivered by Cubic, and bring the best-of-breed to all of our customers as a single, global product suite."