Auckland Transport has cut the Snapper payments company out of the region's $100 million public transport ticket project.
The agency says Snapper is not going to be able to meet the November deadline for making its technology compatible with the new system.
Snapper technology is used by the 650-strong fleet of its sister company NZ Bus.
But Snapper has failed to make that equipment compatible with the technology that will allow one electronic card to be used on all public transport.
As a result, Auckland Transport says Snapper will not receive any additional payment when its contract ends.
The agency will roll out new HOP cards for trains and ferries in October and November, with new equipment to be developed for buses by early next year.