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"The ticket sales system currently in use dates back to 2010, which is why it needed updating. The new comprehensive electronic ticket sales system will offer more comfortable and diverse opportunities for purchasing tickets both online and on the trains," Elron CEO Andrus Ossip said in a press release.

Installation of the new ticket machines on the trains is set to start this week. Installation is set to be finished during August, after which the machines will be tested. Passengers will be able to buy tickets from the machines once the testing period has ended. The machine also allows contactless payments and the feature is expected to be made available during the first half of next year.

The winner of the public tender to find a creator for the ticket sales system is public transport solutions developer AS Ridango, which has created electronic ticket systems in use both in Tallinn and Tartu as well as in many locations in the Nordic countries.

The duration of the lease of the ticket sales system signed in May 2016 is 72 months and the sum total of the signed agreements is 1.5 million euros.

According to the agreement, Ridango is to create a comprehensive electronic ticket sales system, supply the devices and later offer necessary software development and a system management service. The annual cost of the agreement is 244,400 euros.

CEO of Ridango Erki Lipre said that Elron's ticket system is an important project for the company as an innovative ticket machine was developed specifically for trains and the amendments were made to the functionality of a system based on the specifics of long-distance lines, which differs to a great extent from the business logic in use in cities.

Eesti Liinirongid AS is a state-owned Estonian operator of passenger trains that conducts its business under the Elron brand. In 2016, the number of boardings was 6.8 million, 4 percent more than in 2015.