The company contracted to overhaul Victoria's unloved myki system is yet to rollout technology that allows all commuters to use their phones in lieu of tickets in major cities, including Paris, despite claims from the Andrews government.
Last week US-based Conduent was awarded a $1.7 billion contract to takeover the operation of myki from December this year.
Conduent beat two other bidders: NTT Data who currently operate myki and Cubic, which set up Sydney's Opal system.
It's understood at least one of those bids was cheaper than Conduent.
As part of the deal, Conduent will upgrade myki to allow open payments — the option for commuters to use their mobile phone or credit card to directly pay for trips.
Public Transport Minister Ben Carroll said under the deal the system would be gradually upgraded to allow the open payments.
Currently only Android phone users can use their phone for tickets. In Sydney, all phones work for travel.
International open payments system promised by government
Myki has been plagued by issues since it was set up more than a decade ago.
The system was custom built for Victoria, with Conduent part of the original consortium.
But with this contract the government wanted a product that was already proven. Mr Carroll said the contract offered the best value for money for taxpayers.
"We are taking a system that has been tested in Paris, in Dubai, in Montreal, in New Jersey and bringing it to Melbourne,'' he told reporters last week.
But the opposition and industry insiders have questioned the accuracy of the minister's statement.
In Paris, commuters still need to have a physical ticket, similar to a myki. Android users can use their phones but other phone users cannot yet access open payments. Sources say work to make open payments more widespread continues.
In Dubai, Conduent only runs a bus service which requires a physical ticket, with contract negotiations ongoing about open payments.
And in Montreal, physical tickets are still required.
Conduent does provide open payments on Adelaide trams and in other parts of France, Italy and Mexico.
Opposition puts Conduent's past performance under the spotlight
The company's track record was raised in parliament last week by Shadow Public Transport Minister Richard Riordan, who asked: "How can Victorians have any confidence that Conduent will not be another myki disaster?"
"We have every confidence in the new ticketing system that will be employed,'' Mr Carroll responded.
In Philadelphia, the company has been involved in cost blow outs and teething issues with the local transport card that has led the city to consider dumping the company.
Mr Riordan said the government had failed to do its due diligence.
"It concerns me that a 2-minute Google search can show that Conduent is trouble in Paris, in New Jersey, in Philadelphia and in Dubai," Mr Riordan said.
"If the opposition can find that out surely the 10,000 people in the Department of Transport could have found that out also."
The government said it undertook a rigorous and competitive procurement process for the contract, including a significant number of technical requirements.
"The new contract with Conduent will see myki evolve and provide a greater benefit to passengers – by using proven technology to make it quicker and easier to top up, touch on and travel across the state's world-class public transport system,'' Mr Carroll said in a statement, responding to questions about Conduent's overseas ventures.
The government said It conducted site visits as part of the tender process.
A Conduent spokesman said it was honoured to have been selected to provide the next generation of Victoria's public transport ticketing system.
"The decision reflects Conduent's proven capabilities to deliver a modern and effective ticketing system that will improve access to public transport, and validates Conduent's plans for geographic expansion, including Australia,'' a spokesman said.
"We look forward to delivering state-of-the-art technologies and services that will enhance the travelling experience for both locals and visitors to the state."
