EE has confirmed its contactless mobile payments system, Cash on Tap, can now be used on 8,600 of the capital's buses.
This means commuters signed up to EE's mobile network and in possession of a Cash on Tap enabled smartphone can now use their devices to pay for bus travel across London.
The firm has also assured users that weekly and daily caps will be put in place to ensure Cash on Tap users are charged the same when using London busses as those sporting Oyster cards.
Therefore, a single bus fare will cost them 1.45, while daily bus fares will be capped at 4.40, which is in line with Oyster travel costs.
Furthermore, from 16 September, Cash on Tap users will also be able to use the service to pay for journeys on the London tube network, DLR and Overground train services.
Cash on Tap was launched by EE in 2013 and allows people to use their smartphones to pay for goods and services worth less than 20 at more than 300,000 locations across the country.
Pippa Dunn, chief consumer marketing officer at EE, said the service will make paying for bus journeys faster and simpler for commuters.
"More people use London's buses than all the other bus services across the country combined, so the need for speedy and simple payment solutions is paramount," said Dunn.
"That's why we've been working hard to bring our contactless mobile payments service, Cash on Tap, to TFL's network removing the need for customers to queue for a ticket, or hunt through their pockets and bags to find the right card."
Contactless payments are fast emerging as the preferred way to pay for lots of people, with data from credit card firm Visa Europe revealing today an 18 per cent rise in the number of people using them to pay for goods between April and May 2014.
In real terms, consumers used contactless card payments during 19.7 million transactions across the UK in May.
That month also set a new record for the total value of transactions made via contactless cards in a single month in the UK, peaking at 126.7 million.
This represents a 14 per cent rise compared to the previous month.
Mark Austin, director of contactless at Visa Europe, said the adoption of contactless payment methods is growing at a "phenomenal" rate.
"[This is] driven by increased consumer awareness, the commitment of UK banks to issue Visa contactless cards and UK retailers activating contactless terminals," he added.
