Victoria’s public transport network is set to be modernised, with a new ticketing contract now signed to improve the myki system, giving passengers more payment options when they travel across the state.

Minister for Public Transport, Ben Carroll on Monday announced American ticketing supplier Conduent Business Services will be the next operator of the state’s public transport ticketing system, under a new 15-year contract worth $1.5 billion.

The new contract will see the system evolve with modern improvements, using proven technologies in the market so all transport users can safely and seamlessly access, use and pay for public transport.

Following trials to take place over a an expected period of two years, beginning in 2024, improvements will be progressively added to the existing payment options and will allow passengers to tap on and off with their credit or debit card and pay with a digital wallet on a smartphone or smart watch. Apple and Android devices will be supported.

There will not be any immediate changes to the current myki or V/Line ticketing system as Conduent transitions into the ticketing system, with customers still able to purchase and top-up myki at train stations, retail agents, as well as through online services and over the phone as they always have done.

Certain regional stations, including Sale and Stratford, rely on paper tickets and have not been put onto the myki system during the current contract. The Gippsland Times has asked the state government whether the paper tickets will be dumped in favour of the new system.

Conduent Business Services has delivered and operates more than four hundred ticketing systems across 24 countries including in France, Dubai, Canada and USA.

Regional spokesperson for the Public Transport Users Association (PTUA), Paul Westcott welcomed the announcement.

“Paris is Conduent’s biggest area of operation. They also do Adelaide’s system. They’re an experienced operator. We think it will be a good thing,” he said.

“It will benefit those within Victorian regional cities who use myki, and it would benefit the stations without the myki systems even more once it’s set up there. And if it’s easier to use public transport, more people will use it.”

Shadow Minister for Public Transport, Richard Riordan questioned why Victorians have to wait years for Conduent’s system to be implemented when their technology is already operational in other cities.

“It’s 2023 yet Victoria lags behind the rest of Australia and the world when it comes to ticketing on public transport,” Mr Riordan said.

“Victorians have already waited 18 years for a system that works and the Andrews Government must ensure the mistakes of the past are not repeated again.

“If this new system is ready off-the-shelf, then the Andrews Government must explain why won’t it be fully rolled out until the end of 2025.

“New South Wales has been able to tap on with a credit or debit card since 2018. This new system must deliver the modern, effective and reliable ticketing system Victorians across the state need and deserve.”

Mr Westcott said it was not correct to refer to the new system as one that was “completely off-the-shelf”.

“Each public transport is different and has different requirements. Some places have point-to-point fares, where you pay a different fare depending on where you go”

“In Victoria, it’s a ‘zones’ system, and even that’s been modified recently with the fare caps. Now it doesn’t matter where you go, it costs the same.”

New features will be added progressively to make sure Victorians can easily transition to new, more convenient ways of buying a ticket to travel.

Improvements to the myki system over the past seven years under the current contract include the introduction of mobile myki on Android devices, instant top ups in PTV app including with Apple Pay and the installation of hundreds of new myki readers.

Mr Carroll said this new contract will provide a greater benefit to passengers with proven technology to make it quicker and easier to top up, touch on and travel.

“This new ticketing contract is an important step in the evolution of myki as a future-proofed ticket to travel on Victoria’s world-class public transport system,” he said.

V/Line passengers been travelling on lower transport fares since the government’s regional fare cap came into effect on March 31.

The new ticketing contract will begin on December 1, 2023. The previous contract holder, NTT Data, has run the myki system since 2007.