From 1 June, 11- to 18-year-olds who qualify for free travel in the capital will have to use a "Zip Card" to touch in and out on buses and trams. Young people will have to show the photocards on request if they wish to take advantage of free travel.
The 5 administration fee has been waived to provide easier access to services.
London mayor Ken Livingstone said the measures would make it easier to catch those who try to abuse the scheme as well as improving young people's access to things to do.
Anne Longfield, chief executive of 4Children, welcomed the move. "I'm optimistic that the scheme can help to reduce inequalities, unleash the positive potential of young people and encourage them to make the most of the exciting opportunities London has to offer."
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