If they put ticket machines at the busiest stops and programmed them to be able to dispense tickets for future dates, they got get a lot of people to use prepaid tickets without having to change fares at all. The fact that the machines will give change should be enough of a hook on its own.
Most people get the bus from their home to the city in the morning and make the reverse trip in the evening. People could buy their ticket for the trip home and get their ticket for the next morning at the same time.
I do think there should be significant reductions for prepaid tickets, though. Unless you live a long way out weekly/monthly trips just aren't worth it. If we had a proper zone system and you could buy season tickets that covered just the central zones there would be a lot more take-up.
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