The city has decided to cancel the contract it has with the supplier of its new electronic fare collection system.
The supplier was awarded the contract in 2010 but failed to meet the requirements and timelines that were laid out by Calgary Transit.
"The City has sent a clear message to all its suppliers that they must meet the expectations and standards set in the contract," said Mayor Naheed Nenshi. "While we apologize for the delay in rolling this out to customers, we have to get this right."
Similar systems are in use around the world and allow transit customers to reload smart cards online, over the phone or at retail stores.
The cards are then swiped through fare card readers onboard buses and trains.
Transit will be releasing a new Request for Proposals in 2013 in an effort to secure a new vendor to provide the system.
In the meantime, transit customers can still use cash, tickets and monthly passes.
