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Passengers who buy peak-hour paper Travelcards are paying almost £40 million a year more than necessary, it was revealed today.

More than 8 million peak day Travelcards were sold by Transport for London last year, despite being more expensive than equivalent Oyster, contactless card and smart-pay fares.

Only two types of paper Travelcard are available for day travel — a zones 1-4 card costing £13.10 and a zones 1-6 card costing £18.60 for peak-hour journeys (or £13.10 off-peak).

But passengers who use Oyster, contactless or Apple Pay in zones 1-4 would pay £10.10 because of TfL's automated fare-capping system — a saving of £3.

Similarly, travel in zones 1-6 is capped at £12.80, a saving of £5.80 on a peak-hour paper Travelcard, or 30p off-peak (journeys started after 9. 30am).

The proportion of travellers using paper tickets is small in comparison to the 1.4 billion Underground journeys a year.

Tourists and visitors to London who are unfamiliar with the Tube are thought to account for the bulk of those missing out on the cheapest fares.

Johanna Noble, associate editor at MoneySavingExpert.com, which obtained the figures, said: “With so many daily Travelcards still being sold, it’s clear that many London travellers still aren’t aware that there are cheaper options available.

“It’s a travesty that passengers — many of whom are likely just to be visiting the capital rather than commuting in — have been overpaying, with transport in London already so expensive. It begs the question why these daily Travelcards are still being sold.”

The cost of paper Travelcards is set higher to incentivise passengers to use contactless cards, maximising income and reducing administration costs.

Shashi Verma, chief technology officer at TfL, said: “Using Oyster or contactless to pay as you go is now the most popular way to travel by public transport in London, with around 63 per cent of all Tube journeys now made this way.

"These methods of payments are quick, easy and secure and are ­better value than buying a one-day paper Travelcard.”