I assume they are referring to systems like TPG in Geneva. Basically you buy a pass and when you get on an off a bus or street car there is no checking of payment it is just assumed everyone is "honoring" the agreement to pay. Every once and a while transit cops will board and check that everyone has a pass/has paid somehow and if you get caught not paying it can affect your ability to rent housing etc.

> it can affect your ability to rent housing

This is insane, but I guess it fits the Swiss (and Geneva more specifically) quite well. And before anyone starts babbling here about the Swiss's rectitude, Geneva itself is host to this giant international money-laundering abomination:

> Geneva Freeport (French: Ports Francs et Entrepôts de Genève SA) is a warehouse complex in Geneva, Switzerland, for the storage of art and other valuables and collectibles. It is the world's oldest and largest freeport facility, and the one with the most artworks, with 40% of its collection being art with an estimated value of US$100 billion

But yeah, not pay the tram ticket once or twice and suddenly you're not worthy of renting in that shithole called Geneva, meanwhile the city itself launders hundreds of billions of dollars.

[1] https://en.wikipedia.org/wiki/Geneva_Freeport