Melbourne public transport commuters will be able to tap on and off with iPhones and credit cards under an overhauled fare system.

Victorian Public Transport Minister Ben Carroll on Monday announced US company Conduant as the winning bidder for the state’s next public transport ticketing contract, replacing myki’s operator NTT Data.

Trials of the updated ticket system will begin in 2024, with changes progressively added to existing payment options.

There will not be any immediate changes to the myki system.

Conduant will have the $1.7 billion contract for 15 years.

“We will now reach the 21st century with account-based ticketing [that’s] simpler and more easier to use through your credit card, through your smartphone, through your smartwatch,” Mr Carroll said on Monday.

The myki card system replaced Metcard tickets in 2012. It has been plagued with million-dollar cost blowouts and system issues.

Despite the problems, NTT Data was awarded a $700-million, seven-year contract extension in 2017, covering it until November this year.

Under the existing system, people who want to use public transport in Melbourne must buy a myki card and add funds to it. There is a separate system for regional public transport, including trains.

Android phones have been able to tap on to myki since 2019, but iPhones and credit cards cannot be used.

The Victorian government set aside $1 million in 2019 to try to incorporate Apple technology into myki but a solution was not found.

Train commuters in Sydney, London and Singapore can use their credit and debit cards to tap on and off, and Brisbane is implementing similar technology.

-with AAP