Victorians will be able to tap on and off public transport using bank cards, smartphones or wearable devices under a bank-backed overhaul to offer contactless payments.
The state's Department of Transport and Planning has appointed the Commonwealth Bank as a merchant acquirer for the roll-out of its next-generation ticketing system, the government and bank confirmed on Friday.
"Victorians, international and interstate visitors alike, will enjoy the simple, frictionless experience that contactless payments provide public transport users," Commonwealth Bank executive Andrew Hinchliff said.
"We are excited to work with the Department of Transport and Planning to bring contactless payments to the state."
The public transport ticketing improvements would be progressively rolled out, and myki card users would still be able to use their cards and top them up, the bank said.
V/Line was also set to be included in the contactless ticketing scheme.
"Importantly, as improvements are progressively added, the system will help make travel across Victoria more seamless," CBA said.
"Regional V/line commuters, concession holders, as well as international and interstate visitors will be able to choose contactless credit and debit card payment options, in line with their experience using transport networks in other global cities."
The bank's technology underpins all contactless payments on public transport in Australia and New Zealand.
New Jersey-based company Conduent was in May handed a 15-year deal to overhaul and operate the outdated myki system, beating myki's Japanese operator NTT Data and another US outfit Cubic.
Cubic later wrote to Victorian Premier Daniel Andrews to complain about possible errors in the government tender process, claiming Conduent overstated its experience as none of its more than 400 previous ticketing systems accepted bank card or phone payments.
Conduent is set to officially take over from NTT Data on December 1.
The upgraded technology is slated to be trialled next year before being installed more broadly in 2025.
The department said the new contract with Conduent would see myki evolve and provide a greater benefit to passengers.
"Improvements to the ticketing system will be progressively rolled out across our public transport system, giving all customers across metropolitan and regional areas, including concession holders, more seamless travel and more options on how they choose to pay," a spokeswoman said.
The myki system started rolling out in 2007 but was beset with million-dollar cost blowouts and system issues.
It did not become fully operational until 2012, when it replaced the Metcard system.
NTT Data took over from myki's initial contracted developer Kamco in 2010 and was awarded a $700 million, seven-year contract extension in 2017.
Visitors to Melbourne must buy a myki card - $6 for adults or $3 for concession, children and seniors - and add funds to it, unlike Sydney's Opal cards which have no attached purchase fee.
Android phone users have been able to tap on to the system since 2019 but iPhones and bank cards still cannot be used despite the state government setting aside $1m in 2019 to find a solution.
Train commuters in major cities such as Sydney, London and Singapore can use their credit and debit cards to tap on and off.
CBA was appointed to the Victorian government's banking panel in 2021.
