In a statement, CBA said it had been appointed to the task by the Department of Transport and Planning.

In May, Victoria's Public Transport Minister Ben Collins announced that American firm Conduent Business Services had been awarded a 15-year deal, beginning in December, to improve Victoria's myki system.

The CBA said the new system would allow commuters, including V/Line users, to tap on and off public transport with the card or smart device they already had.

Andrew Hinchliff, group executive, Institutional Banking & Markets at CBA, said: “With the Victorian Government’s announcement of planned improvements to the myki system, Victorians, international and interstate visitors alike, will enjoy the simple, frictionless experience that contactless payments provide public transport users.

"We are excited to work with the Department of Transport and Planning to bring contactless payments to the State. Public transport is an integral part of daily life for many Victorians, so we are proud to play a part in improving the commuter experience.

“We have a longstanding commitment to innovation in public transport infrastructure, with CBA’s digital transit ticketing capability now underpinning every open loop contactless payment option used by public transport in Australia and New Zealand,”

Travellers will still be able to use physical myki cards and top up via traditional means, as well as online or at kiosks using EFTPOS, credit, debit, and digital wallets like Apple Pay and Google Pay.

Payments using smartphones or smartwatches will also be possible, as at present.