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The Key is a ITSO compliant smartcard so there is a facility for it to be used as a PAYG card too at some time in the future.

You have to tap in and out to verify the journey you've paid for. The chap who avoided paying over £40k in rail fares traveling from Sussex to London by misusing an Oyster card on the final stage of his journey thought he could get away with a small penalty fare by a tap out without a prior tap in.