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difference between prepaid and postpaid
5 Major Difference between Prepaid and Postpaid- advantages & disadvantages
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Knowing the difference between prepaid and postpaid is important for all those who use mobile SIM, or any other service where prepaid and postpaid options are available.
So that they can take advantage of the services at a lower cost according to their convenience.

Many times people have to bear the loss due to not knowing the difference between prepaid and postpaid.

What is Prepaid? –

As the name itself suggests, prepaid means first payment.
If you take any prepaid service, it means that you have to pay for that service first, then you are able to take advantage of that service.

What is postpaid? –

Postpaid means payment after using the service.

In postpaid, you use any service throughout the month, then after the bill is generated at the end of the month, you have to pay the bill.

What is a prepaid and postpaid SIM?

Like other prepaid and postpaid services, prepaid and postpaid SIMs are also provided by different mobile service provider companies.

Prepaid SIM means that in this you have to first recharge from one of the available plans, then you can use that plan.

In the same postpaid sim, you have to choose a plan according to your convenience, and after using that plan for a month, have to pay for that plan next month.

Today there are more than 100 million mobile users in India, of which around 97% are prepaid SIM users.

  • Whether you are using a prepaid SIM or postpaid, it does not matter on the size and data speed of the SIM.
  • In both prepaid and postpaid SIM, you can take advantage of all kinds of services such as calls, data and other features.

Which is the cheaper, prepaid or postpaid sim?

When we compare the plans and the features available on prepaid SIM and postpaid SIM, we get a clear idea that it is cheaper to take prepaid SIM, while postpaid SIM does have some extra features, but for that, you will Have to pay more.

Whenever we buy a plan in prepaid mobile, then GST is included in it, whereas in a postpaid plan, we have to pay GST on top of that plan.
Mobile services in India currently attract 18% GST.

For example, if we buy a prepaid plan of 299 from a mobile service provider, then we only have to pay ₹ 299.

Whereas if we choose 299 plan in postpaid, then we have to bear 18% GST extra over this 299, so we have to pay around ₹ 350 in postpaid.


Advantages of Prepaid sim

Some of the advantages of a prepaid SIM are as follows-

  • You can recharge as much as you want in a prepaid sim, you can also recharge at least ₹ 10.
  • Prepaid SIM is available for free and you do not have to pay any security deposit for it.
  • Prepaid plans are cheaper than postpaid.
Prepaid sim advantages and disadvantages
Prepaid sim advantages and disadvantages

Advantages of Postpaid sim

Some of the advantages of a postpaid SIM are as follows-

  • Most mobile service providers give you the facility of data rollover and monthly data with postpaid SIM, meaning you can use the data as much as you want every day.
  • A very big feature in postpaid SIM is that you do not have the hassle of recharge, as per your plan, you have to pay the bill once.
  • In some sensitive parts of the country such as Jammu and Kashmir and Assam, only the postpaid SIM works while roaming.
  • Mobile service provider companies also offer a variety of free services to their customers with postpaid SIMs, such as Airtel providing free mobile insurance to its postpaid customers.
  • Call records and other services records are easily available to the customer in postpaid plans.
  • Your address is kept in the postpaid mobile bill, which you can use as address proof.
  • If you take a postpaid SIM, you can choose the number of your choice, while prepaid customers do not get this facility.
  • Postpaid customers get good customer care facility.

Prepaid and Postpaid FAQs

Why prepaid is cheaper than postpaid?

Postpaid is slightly more expensive than prepaid for these reasons-

  1. The mobile service provider company has a fear with the postpaid customer that if the customer does not pay the bill after a month’s use, then the company may suffer.
  2. The process of postpaid number activation is almost like a credit card process in which address verification is done, for which the company has to spend a few rupees for every customer.
  3. Postpaid plans do not have a daily data limit.
  4. Call records and other records are readily available to postpaid users for which the company has to spend.

Is postpaid faster than prepaid?

Postpaid does not provide faster data service than prepaid.

Whether you are using a prepaid SIM, or a postpaid SIM, it does not affect the data speed you get.

Data speed depends on the network available in your area and on your mobile


If you wish to read this article in Hindi- click here


Ajay Kumar is an Electrical Engineer who has been working in the field of education for more than a decade. His education and technology related website and YouTube channel have been well-liked by the people. He is famous for explaining technical terms in easy language. How did you like this article? If you have any suggestions or questions, then please comment. Follow the Author on social media.

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