Londoners will be awarded points for every journey they make on foot or by bike, which will then be redeemable against a range of rewards including offers and discounts.
The free to join programme is scheduled to launch in spring 2012. A trial will launch later this year.
TfL has partnered with environmental agency Recyclebank to launch the scheme.
Recyclebank aims to encourage individuals to make more environmental choices by partnering with large organisations.
TfL and Recyclebank plan to develop an ad campaign to support the launch in 2012.