Transport will be free on Canberra's buses and trams from September to November when the current payment system ends but before the new system is fully introduced.
Transport Canberra's MyWay card tickets rely on the Optus 3G mobile phone network which is to be switched off soon.
With the new system, passengers will be able to pay with debit and credit cards, including by tapping a phone. "Old-style" cards loaded with cash will also be available.
But there will be a gap: "Between September and November travel will be free on all public transport across the ACT whilst the new MyWay+ hardware is installed on the bus fleet and final testing of the new MyWay+ system occurs," the ACT government said.
"Transport Canberra will advise the community soon on the exact date the old MyWay system will switch off following final advice from Optus."
The ACT government is urging passengers to register their current MyWay cards so that any balance can be transferred to the new system. Owners of unregistered cards will be able to get the cash left on their old cards back.
In the gap between the two fare systems, 200 people "soon to be recruited" will test the new MyWay+ method of paying.
The ACT government stated: "This critical testing period will provide valuable insight from a customer experience perspective. Involvement will include an early hands-on experience in using the MyWay+ services, including the web portal, mobile app as well as testing the new equipment on board buses and at light rail stops from a customer experience perspective."
The ACT government announced in February last year that it had signed a contract with NEC Australia to overhaul its public transport fares system.