What is postpaid?

What Does postpaid Mean

Postpaid is a concept used to describe the service of telephone or television that is payable at the end of the month . The client who has a subscription of this type pays a monthly sum after accessing the benefits.

Whoever hires a postpaid service , therefore, pays after using it. On the other hand, in a prepaid service , the disbursement of the money is prior to the use of the service.
Take the case of landlines . It is common for users to use the phone freely and then, at the end of each month, receive the invoice for their consumption. It is a postpaid mechanism: the higher the use, the higher the amount to pay.

With cell or mobile telephony , the common thing is that a postpaid plan includes a certain amount of minutes to talk and megabytes or gigabytes to surf the Internet . This package has a fixed monthly price. If the customer consumes that credit in advance, he has the possibility of recharging his balance or waiting until the automatic load the following month.
Those who choose a prepaid cell phone plan, on the other hand, must purchase the balance before using it: if they do not do so, they cannot use the line. Once you have used up your credit , you need to recharge.
In general, calls, messages and Internet browsing are cheaper on postpaid plans than on prepaid. Thus, companies encourage people to commit to a monthly payment that represents a stable and sustained income for the entity over time, unlike what happens with those who select a prepaid option.
There are many debates about the differences between prepaid and postpaid services, with a particular focus on the advantages and disadvantages of each for customers and businesses. At first glance, we can say that the one that benefits more to one party harms more to the other, inevitably:
* Postpaid increases the company's chances of earning more money per month, but puts the customer's pocket at risk if they consume excessively;
* Prepaid, on the other hand, gives the customer greater control because it gives the customer from the first day of the period the assurance that they will not spend more money than they want, while minimizing the company's chances of obtaining extraordinary profits.
And it is as a result of this contrast that we can appreciate other differences, those that complement the payment methods . For example, while with postpaid the company can sit idly by waiting for its customers to make excessive consumption due to inattention and pay them large sums of money at the end of the period, with a prepaid plan it must make every effort. days to remind them about its dozens of promotions and special offers: "this Christmas, get more data" , "do not stop sending SMS due to lack of credit" , "buy discount movie tickets" , and so on.

In short, postpaid is a system that from a commercial point of view could be considered archaic, since it responds to a model typical of the first large companies, located in a market with much less competition than at present, supported by consumers who do not they made so much use of their own rights because they did not know them or because they did not have the necessary means of communication to raise their complaints to points that were impossible to ignore. The Internet and social networks give us the possibility of requiring companies to respect us but also to offer us the services that best suit our needs, and postpaid does not seem to fall into this category.

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