Anyway there are pros and cons, these are just the cons. If you ask me public transport would be a big source of investments and a completely free service like say the justice system, public roads, parks etc. Moving about the city in the safest, most efficient, cheapest, cleanest and environmentally friendly manner that's mass transit (i.e. ignoring say bicycles) should be free if you ask me.
Sorry, that's my inner socialist leaking.
Now that smartphones are becoming ubiquitous, I suspect it could even be done statistically. Create a good transit app with embedded tracking. You'd know where people were trying to go to, how they ended up getting there, how long it took, etc.
Do that and you could eliminate all of the overhead of ticketing, charging, etc. It wouldn't be perfectly accurate, but it's not like the current system is either. [1]
[1] http://www.dw.com/en/jumping-the-barriers-on-the-paris-metro...
if this would have to be mandatory it wouldn't catch on with anyone remotely concerned about privacy.
You wouldn't happen to be American by any chance?