Victorians will soon be able to use their phones, credit cards and smart watches to access public transport, with a new operator set to take over the state’s problem-plagued Myki system at the end of the year.
The public transport minister, Ben Carroll, on Monday announced US-based company Conduent has been awarded a $1.7bn, 15-year contract to run the ticketing system for Victoria’s train, tram and bus networks.
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“This is a very important moment for Victoria and public transport. For the past 16 years we have had a card-based ticketing system under Myki,” he told reporters.
“We will now reach the 21st century, with account-based ticketing [that is] simpler and more easier to use through your credit card, through your smartphone and through your smartwatch.”
Carroll said the new system will be rolled out over two years, with Conduent set to take over the contract from Myki’s current operator, NTT Data, on 1 December. Trials of the new system are expected begin next year.
As part of the changes, all public transport fares will be moved into the updated Myki, including school buses and regional V/Line tickets, while tourists will also be able to touch on without needing an account.
The decision follows an 18-month tender process, which also included NTT Data and the world’s biggest ticketing system provider, Cubic.
Carroll said Conduent provided “very good value for money” and had a “proven track record”, operating about 400 ticketing systems around the world, including in Europe, North America and Australia.
“The benefit now in 2023 is that you can do off-the-shelf products that have had testing and had the bugs ironed out,” he said.
He said while the operator will change, the system will continue to be called Myki.
Victoria first signed a $1bn contract with Kamco in 2005 to develop the Myki system and replace the paper-based Metcard system. It was rolled out in 2010, more than $500m over budget and behind schedule.
NTT Data, which bought Kamco in 2010, won a seven-year contract extension – worth $700m – in 2016.
Technical issues have also persistently plagued the Myki system.
Unlike other public transport ticketing systems, which accept credit cards and tap-to-pay-enabled phones and watches when boarding, Myki still requires a physical card, which costs $6 upfront before credit is added.
There is a mobile Myki version for Android devices, but not for iPhones, despite the government allocating $1m in 2019 to develop an Apple version and other improvements.
Urban planners and commuter advocates have long called for credit card compatibility in Melbourne’s public transport ticketing.
The opposition spokesperson for public transport, Richard Riordan, welcomed the decision but questioned why it would take two years to roll out an off-the-shelf system.
“Most people out there will be wondering why on earth we can’t have the same system that Sydney, Paris, and other cities around the world have,” he said.
“We definitely want guarantees that this project will be on time and on budget, and quite frankly, this government has had a very poor track record of delivering both those outcomes.”
The Public Transport Users Association’s spokesperson, Daniel Bowen, said the new system should also automatically offer discounted weekly or monthly fares.
“It’s about making public transport as seamless as possible. The barrier at the moment is that you have to buy a special card and then figure out what your fare is going to be, then load that on. Only then can you actually pop on a tram or a bus or a train,” Bowen said.
“The credit card options will be very welcome, particularly for new and occasional public transport users.”
