The provincial agency responsible for Ottawa's troubled Presto transit pass will compensate the city for the delay in implementing the system, mayor Jim Watson said Monday.

The one-touch Presto pass was supposed to be up and running on OC Transpo buses by Canada Day, but technical issues delayed the launch.

In particular, testers of the cards reported problems getting the reading terminals to confirm the 'tap' of the pay cards.

Mayor Jim Watson said Metrolinx, the provincial agency behind the Presto card, has promised to pay the city for lost revenue associated with the delay, an estimated $100,000 a month.

Officials are promising a more detailed update on Wednesday when the city's transit commission meets.