Since its introduction 12 months ago, Go Ahead Group owned The Oxford Bus Company and Thames Travel have reported strong growth in the number of passengers paying via contactless.
More than 1.4m transactions were made by passengers using the payment method.
MD Phil Southall, hailed the technology as "great progress" for passengers and operators.
He says: "Passengers have embraced contactless payments, the figures are very encouraging, and the number of people moving to contactless payments has grown steadily during the past year. We fully expect to see this trend continue to grow as more people become comfortable with the system.
"Contactless is a convenient way for passengers to pay and we are now looking to phase in 'daily capping' as the first of a number of developments, which will improve our service further and help make our city smarter."
Both operators will introduce the next stage of its contactless technology this year by adding 'intelligent fare calculation', which will work out the best deal for passengers.
