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There's a tram museum in Derbyshire where your admission price buys an old 1p (or a 1/2p for children) you then take your old coin with you on the tram and pay the conductor who issues and clips tickets, so I'd imagine that's how they use to do it.
I think as the Blackpool trams are traditional English trams and as they only go up and down the sea front they are only really of use to tourists and resort workers, which may be the reason for taking the fares the traditional way. I've never been to Sheffield (apart from changing trains there) but I am aware that it's the modern German type of trams that they use there.
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