When it comes to picking a mobile SIM-only plan, one of your biggest questions might be: postpaid or prepaid? What does it all mean? Simply put, ‘prepaid’ means your mobile service is paid in advance, while ‘postpaid’ means you only pay for mobile services that you have actually used. Both have their perks, but understanding their key differences will help you decide which plan fits your lifestyle better!

What does a postpaid plan include?

Postpaid plans are all about convenience, because you don’t need to repurchase a plan each month. You pay at the end of each billing cycle (usually on a monthly basis), and only need to top up additional fees if you exceed certain mobile usage limits. Here’s what to expect from a postpaid SIM plan:

• Fixed recurring monthly subscription fees, with possible top-ups for extra service usage.
• Enjoy generous amounts of data bundled with talk time/SMS 
• Additional fees apply if you exceed data or talktime/SMS limits
• Bonus perks are often included, like roaming data or streaming subscriptions
• Usually contract-bound, and may include early termination fees, but many providers now offer no-contract options. For instance, all SIM-only plans on giga are contract-free!

What does a prepaid plan include?

Prepaid plans require you to pay upfront for a mobile service package. It lets you control your spending because you pay exactly only for the services used. For those who want to avoid long-term commitments or keep a close eye on their budget, you might want to consider a prepaid plan. Here’s what to expect:

• Prepaid credits come with a validity period, you need to keep track of expiration dates to avoid losing unused balance.
• Prepaid plans generally offer less data and fewer perks.
• If you require additional mobile usage, you will need to top up your credit at physical stores, but providers now also offer flexible digital top-ups.
• No contract is required for prepaid plans and each prepaid plan purchased is for one-time use only.

So…which is better?
For an effective comparison between postpaid vs prepaid services, let’s consider the following difference in prepaid and postpaid plans:

Cost vs Value:

Postpaid plans might seem pricier at first with their monthly charges, but they often deliver better value through larger data allowances and extra perks and services, such as data rollover and international roaming packages. Learn how you can maximise your savings with postpaid plans here. Prepaid plans offer more budget control but usually provide only basic mobile services, with additional add-ons available if you’re willing to pay more for it.

Convenience and Flexibility:

Postpaid plans provide seamless connectivity and service, where you can opt for automatic monthly payments so you’ll never experience service interruptions. Prepaid plans, on the other hand, offer you the freedom to enjoy your mobile service without any contract or subscription, making it easy for you to switch providers.

Usage Habits:
Most average mobile service users who require consistent data and talk time may prefer the reliability of a postpaid plan, while cost-conscious customers who only need basic services may find prepaid more cost effective. In Singapore, postpaid SIM-only plans are a popular option for the convenience it offers.

Considering switching to a postpaid plan?

Want to switch to postpaid but concerned about potential downsides like contractual obligations or bill shocks? All giga’s plans are contract free and don’t come with any hidden charges! Plus our giga app lets you easily manage and track your payments and mobile usage in real-time, so you never need to worry about bill shocks!

All giga plans come with free rollover data and are also eSIM-enabled so you can activate your plan INSTANTLY as soon as you sign up! To find out more about the advantages of using an eSIM instead of a traditional SIM card, check out this page.