Transport Minister Gerry Brownlee says Snapper was given an opportunity to be compatible with a $100 million integrated ticketing system in Auckland, but it has taken far too long.
Auckland Transport is ending the role of the Snapper company, which supplies machines to NZ Bus.
This leaves 650 buses without ready access to equipment compatible with the new HOP electronic ticket system.
Mr Brownlee says the final decision is up to Auckland Transport, but the deadline is looming. The system is due to launch in three months.
Snapper has failed to deliver on an agreement to make its ticket devices compatible with HOP, which
is a flagship transport project for the region.
Auckland Transport chief executive David Warburton says he can't yet confirm the agreement with Snapper is over.
Mayor Len Brown is declining to comment, but he wants an integrated ticketing system completed as soon as possible.