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The system works similarly in Israel. For example, on the light rail in Yerushalayim, you prepay to get a ticket (and risk missing the train) or use a pre-loaded/pre-paid smart card (RavKav) , which is then inserted into one of multiple machines located in each car of the train, which then spits out a receipt. No one prevents people who don’t pay from getting on. But they have inspectors spot checking the passengers for their tickets, and will give big fines to those who don’t pay. It’s a strong deterrent, although I am sure there are those who get away without paying, the money brought in by fines more than makes up for it. Same principle behind paid parking as well. Most pay because they are either law abiding and/or do not want to risk getting an expensive ticket, some will get away without paying, and some will get fined and be a source of revenue to the city.