The faster readers have been installed as a trial on one tram that is operating on route 11 between Docklands and West Preston, but could be placed on the entire E-Class fleet in coming months and years.

The same myki readers have already been installed at some railway stations where crowd crushes occur, including in the City Loop and at the MCG gates at the western end of Richmond station, and have reduced congestion at station gates.

Jacinta Allan, the Minister for Public Transport, said the readers registered tickets instantly.

"The new readers are faster and easier to use, allowing people to get on trams quicker, particularly in peak hour," Ms Allan said.

They also show a cardholder's myki account balance when touching on, unlike the next-generation readers that have been installed at stations, meaning passengers can keep track of when to top-up.

Daniel Bowen, Public Transport Users Association spokesman, said it made sense to shift to the superior new readers as E-Class trams continue to roll out of the factory, rather than persist with "churning out the old dodgy ones".

"The ones we've seen in stations so far are a big improvement in most respects," Mr Bowen said.

"They seem to be more reliable, they are certainly much faster."

There are 30 E-Class trams in service and 40 more are on order or in production at Bombardier's Dandenong factory.

Gunzels take note: the trial next generation reader has been installed on tram number 6008.

Correction: The original version of the story incorrectly reported that the next-generation myki readers on trams do not display an account balance.