Myki operator ditched in bid to modernise tired system

A new operator has been announced for Victoria’s troubled Myki system, promising an upgraded ticketing system allowing passengers to keep their money in online accounts rather than on a physical card.

Victoria has awarded the Myki contract to US company Conduent.

A new operator for Victoria’s troubled Myki system has been announced, with the existing contractor losing out.

Public Transport Minister Ben Carroll on Monday confirmed US company Conduent would upgrade the ticketing system to take credit cards and phones.

The new “cloud-based” system will also mean smart watches, QR codes and emerging technology can be used, with passengers to keep their money in online accounts rather than on a physical card.

Tourists will also be able to touch on with their credit cards without the initial set-up currently required.

But there will be a two-year transition for the system to be spread across the entire state.

The contract begins in December and trials will be held throughout 2024.

All public transport fares will be moved into the updated Myki, including school buses and regional tickets.

Trials for the new system will begin next year. Picture: Jake Nowakowski

The name Myki is also here to stay after the government chose to keep the current system for its brand recognition.

“This is a very important moment for Victoria and public transport,” Mr Carroll.

“For the past 16 years we have had a card-based ticketing system under Myki.

“We will now reach the 21st century with an account-based ticketing (that is) simpler and more easier to use through your credit card, through your smartphone and through your smartwatch.

“This is a real steep change for Melburnians and indeed Victorians.”

The contract is worth $1.7bn and will run over 15 years.

It includes the cost of upgrading machines but it is believed a significant share of the network will not need to be replaced.

Mobile Myki is currently available on Android phones but is not available on Apple products despite $1m being committed to fix this problem before the pandemic.

A major criticism of Melbourne’s current system is that commuters cannot touch on and off with debit or credit cards as they can in other states and countries.

This forces tourists to buy Myki cards and money left within the system that cannot be touched.

Treasurer Tim Pallas has admitted the Myki system was not meeting the best practice set across the world.

Not being able to use your credit card for public transport has been a sore point for Victorians for many years. Picture: Jake Nowakowski

Opposition public transport spokesman Richard Riordan criticised the government’s claims it was an “off the shelf” system but had a two-year transition period.

“It must clearly come from a very high shelf because they’re going to need a long ladder and a lot of time to get to it and bring it down to Victorians,” he said.

“Most people out there will be wondering why on earth we can’t have the same system (now) that Sydney, Paris and other cities around the world have.”

Mr Riordan said country Victorians needed to be considered in relation to phone coverage blackspots, seat bookings and the fact many services still had paper tickets.

“We look forward to being able to bring Victoria and Melbourne into the 21st century,” he said.

“But 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.”

Earlier this year, the Herald Sun revealed there was $100m sitting unused on Myki cards that had been expired or inactive for four years.