Price increases to OC Transpo fares and bus passes planned for July 1 will be delayed to coincide with the revised launch of the Presto smart card payment system.

The city's transit commission delayed the launch of Presto in order to work out technological bugs that have shown up during testing, particularly getting the reading terminals to confirm the 'tap' of the pay cards.

The system was to launch July 1.

Cash fares were also set to rise five cents to $3.30, tickets were to rise 40 cents to $3 and regular, senior and express passes were also set to rise.

But sources told the CBC's Alistair Steele those increases will also be delayed until the Presto system is up and running.