In 1978, Associated Electronic Services Ltd (AES), a Perth-based engineering company, began developing an automated fare collection (AFC) system.

ERG was a venture capital-backed company, researching various technologies including an electronic sign board and a manufacturing process for surfboards.

The first project the new ERG won was in Darwin, resulting in the world's first use of smart cards for passengers by a public transit organisation.

[1] On 31 August 1992 the ERG Datafare 2000/Prodata based magnetic-stripe systems fitted to all buses operated by the State Transit Authority in Sydney were switched on.

This covered a fleet of around 1,600 buses and comprised the second stage of converting all of Sydney's government-run public transport services to electronic ticketing.

In 1997 ERG formed an alliance with Motorola,[2] primarily for their smart card technology, and won substantial contracts in Berlin, Hong Kong, Rome, San Francisco and Singapore.

[11] ERG had a contract with the New South Wales Public Transport Ticketing Corporation (PTTC) to develop the Tcard system.

[12] ERG claimed that the PTTC "had itself materially contributed to the delays associated with the project and ... failed to act reasonably and in good faith", and lodged a countersuit in May 2008 to recover over $215 million in costs.

Kamco repudiated the contract in June 2009, arguing a change in ERG's company structure broke their agreement.