San Diego-based Cubic Corporation announced Wednesday that it has won a half-billion-dollar contract to upgrade the fare system on New York City’s subways and buses.

Cubic was selected to replace New York’s 20-year-old MetroCard system with new technology similar to that recently installed by Cubic for London Transport‘s trains and buses.

The base contract is worth $539.5 million with additional options valued at $33.9 million.

“Today’s vote is a tremendous win for New Yorkers, paving the way for flexible payment options, a streamlined trip through the region’s public transit, and updated equipment that will help save money in operating costs. Together with Cubic, we look forward to building the MTA of tomorrow,” said Joseph J. Lhota, chairman of the New York Metropolitan Transit Authority.

The new system allows customers to create personalized transit accounts to see ride history, check balances, add value as well as report lost or stolen cards to protect their funds. They will also have the option of using credit and debit cards and mobile devices at the bus or turnstile.

The new Cubic equipment will be installed in the MTA’s 472 subway stations and on 6,000 buses.

“We are extremely pleased with being awarded this contract, which reinforces Cubic’s position as the industry leader in advanced transportation payment and information solutions” said Brad Feldmann, president and chief executive officer of Cubic.

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