Transport for London says that the contactless card payment scheme will be rolled out on the Docklands Light Railway, London Overground, tube and trams by the end of 2013.
Discussions are also underway with London's train companies about accepting contactless payment cards on National Rail services where Oyster is currently accepted.
More top news
Princess Eugenie has become engaged to long-term boyfriend Jack Brooksbank, Buckingham Palace has announced.
Darren Osborne, 48, allegedly mowed down worshippers attending Ramadan night prayers in June last year.
The woman was left with a fractured skull and an arm broken in several places after the attack in Brixton.