The Latest: MBTA approves $723M overhaul of fare system

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The Latest on the MBTA's announcement of a new automated fare collection system (all times local):

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3:45 p.m.

The fiscal control board that oversees the Boston-area transit agency has approved a 13-year, $723 million contract to develop and operate a revamped fare collection system.

MBTA officials said Monday the new system will be designed to allow passengers to board trolleys, trains and buses with a single tap of a credit card or smartphone.

The current "CharlieCard" would be phased out by 2020.

Cash will no longer be allowed on any vehicle, but cash-paying customers will be able to buy fare cards before boarding.

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Officials hope the system will speed up boarding, cut down on fare evasion and eventually lower costs for the MBTA.

Officials say the contractor, Cubic Corp., has experience designing similar systems for other major transit systems.

The contract includes two five-year options that could extend it through 2041.

12:10 a.m.

MBTA riders may soon bid farewell to their CharlieCards.

The fiscal control board that oversees the Boston-area transit agency is expected Monday to approve a 13-year, $723 million contract to develop and operate a revamped fare collection system.

The new system will be designed to allow passengers to board trolleys, trains and buses with a single tap of a credit card or smartphone.

Officials hope the system, anticipated to go on line in 2020, will speed up the boarding process, cut down on fare evasion and eventually lower costs for the MBTA.

The project also calls for new fare gates and fare vending machines at stations.

The proposed contractor, Cubic Corp. and the John Laing Group, has experience with other transit systems including in London, Sydney, Chicago and San Francisco.