“Moving to this pay as you go system is going to make public transport more affordable and easier to pay for,” he said.
Similar to the current operation on Metrolink, bus passengers will also pay up to the daily cap of £5 or a new weekly cap of £20.
The scheme will operate initially for adult fares only.
It will launch three months after all bus services in Greater Manchester complete their return to local control and accountability in the New Year.
Public control of bus services returned to the area with the launch of the Bee Network in September 2023, following the deregulation and privatisation of bus firms in 1985.
It has been rolled out in stages with the last services due to come under public control on 5 January 2025.