The first of 25,000 new readers will start to be installed next year, with the project expected to be completed in 2028.
A major $820 million overhaul is underway for Sydney's public transport, which the government claims will bring better reliability, accurate travel information and greater ease of use for millions of commuters.
The transformation of the Opal card will bring a new app and digital card, automatic fare adjustment if incorrect fares are charged, and information screens on 5000 buses for the first time.
The card has been a mainstay on Sydney transport for 13 years, based on London's Oyster card, a piece of technology that is almost 30 years old.
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Event-goers will also now be able to scan a QR code on their ticket at an Opal reader for free transport.
The first of 25,000 new readers will start to be installed next year, with the project expected to be completed in 2028.
"This will be a major step up for passengers on the public transport network," NSW Transport Minister John Graham said.
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More accurate real-time tracking also promises to end the frustration of 'ghost buses', services that appear on your apps but never show up.
"It will locate those buses, it will count patronage, it will tell us where the busiest and the most crowded buses are and when they are next available coming to a stop near you," Transport Secretary Josh Murray said.
Commuters will still be able to use a card, their credit cards, or phones to tap, with the promise of easier ways to save money.
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