Victoria has handed a $700 million, seven-year contract to the company that built the troubled and costly myki public transport ticketing system.
NTT Data has been given a renewed contract with stronger performance targets, while the company is also liable for any unexpected costs, which plagued the development of the original myki system.
Public Transport Minister Jacinta Allan said the government would now investigate making it possible for passengers to tap on with their credit cards or smartphones.
She said the deal included stronger performance requirements that would ensure the company delivered better value for money.
Opposition spokesman David Hodgett said the government had thrown away a golden opportunity to deliver real improvements to the system.
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"Only Daniel Andrews thinks it's reasonable to give the makers of myki another chance despite years of incompetence and failure," Mr Hodgett told reporters on Tuesday.
