Postpaid vs. Prepaid Mobile Plans: What’s the Difference?

It is typical for mobile users to ponder over whether a prepaid or postpaid mobile plan best suits them. However, choosing one over the other has become more difficult nowadays, because there are many factors, including practicality and convenience that you'll have to consider.

Today, let's take a closer look at the difference between prepaid and postpaid plans to help determine which is right for you!
 

Postpaid vs. Prepaid Mobile Plans in Singapore

Generally, the most crucial difference between prepaid and postpaid plans lies in when users pay for the services that they use.

In the case of a prepaid plan, payment is made upfront, with users being able to purchase additional top-ups as needed along the way. This affords them better control over their mobile plan. Meanwhile, those subscribed to a postpaid plan are instead charged a fixed amount at the end of each billing cycle (usually monthly).

Selecting the best-fit option thus depends on your own needs, habits, and other circumstances. To help you out, we've done up a quick summary of the differences below. 

What do Postpaid Plans Include?
 

1. Consistent, Hassle-free Billing

As long as you don't exceed your plan limits, you'll be paying the same amount of money each month over the course of your contract period. There's no need to worry about the price fluctuating along the way. 
 

2. 2-year Commitment Period

Postpaid plans usually come with a 2-year commitment period due to the nature of what they provide. During this time, or before you are eligible to recontract your mobile plan, changing or cancelling it will incur an early termination fee.
 

3. New Device Included

Postpaid plans usually come with a new device of your choice upon subscription, though you'll have to pay a portion of the device cost upfront. In exchange, the remainder is then factored in as part of your monthly bill, and subscribers typically end up paying less than if they bought the device separately. 

4. Greater Allowances and Extras

Postpaid plans usually offer (comparatively) greater amounts of mobile data, talktime, and SMS than a corresponding prepaid plan. Plus, they also tend to enjoy a wider swath of perks and extras. In StarHub's case, this can range from complimentary data roaming to free subscriptions to popular streaming platforms, and more.
 

5. No Risk of Running Out

Even if you do exceed the monthly allowance on your postpaid plan, there's no need to worry about your services being cut off. You'll be able to continue using your mobile data, talktime, and SMS as normal, but will have to pay additional fees when your next bill arrives.
 

What do Prepaid Plans Include?

1. Lower Risk of Overspending

With a prepaid plan, because you only pay for the services you want to use upfront, you enjoy maximum control and visibility over your mobile plan expenditure. As such, it's much easier to avoid overspending.

2. No Commitment Period

Prepaid plans do not have a commitment period, which means there are no early termination fees to worry about.

3. No Device Included

Prepaid plans typically don't come with a new device included. However, you can always choose to purchase one separately, such as via StarHub's Buy Now Pay Later.

4. More Affordable (but Fewer Perks!)

Building on the previous point, the lack of a device cost usually means that prepaid plans tend to be much more affordable compared to a corresponding postpaid plan. Of course, the trade-off is that you'll receive comparatively fewer extras and might not enjoy the reduced device costs that postpaid plan subscribers do. 

5. Top-ups Needed for Continued Usage

Unlike postpaid plans, which automatically factor in any excess usage into your next monthly bill, prepaid plans will require top-ups if you run out. As such, proper usage tracking (or a pre-emptive top-up!) is recommended with such plans.

How to Choose Between Postpaid vs. Prepaid Mobile Plans

1. Budget

Since postpaid plans come with new devices, they generally tend to cost more than a prepaid plan. As such, it's important to assess your budget before making a commitment. 

If you're comfortable with higher monthly fees in exchange for the latest devices, feel free to opt for a postpaid plan. However, if you're concerned you might overspend, a prepaid plan might be the way to go.
 

2. Control vs. Convenience

Prepaid plans give you maximum control over your mobile usage, allowing you to add only what you need, whether that’s more data, talk time, or SMS. However, they tend to require more precise management and tracking, since top-ups are needed to maintain usage should you run out.

Conversely, while postpaid plans offer less control over specific costs, they provide significant convenience in exchange. Typically, these plans come with higher allowances across the board, and you won’t need to worry about running out of data or talk time, since any additional usage will automatically be factored into your next bill.
 

3. Perks, Extras, and Overall Value

If you're looking for mobile plans with the widest variety of additional bonuses, postpaid plans like StarHub's 2-year Device Plan are a better fit. They come with complimentary data roaming as well as free subscriptions to popular streaming services like Netflix and Amazon Prime.

On the other hand, prepaid plans tend to offer fewer bonuses, but they are generally more practical for those who might not need new devices, or who are satisfied with their current models.
 

Pick Up Your Perfect Mobile Plan with StarHub

At the end of the day, it all depends on what you (as a user) would rather prioritise in your mobile plan. Do you prefer the precise control and commitment-free value offered by prepaid plans, or would you rather enjoy maximum convenience and extras with a postpaid plan?

Regardless of which one you pick, there'll be a StarHub mobile plan that's just right for the job. So, if you haven't already, feel free to check out our no-contract SIM-only Star Plan and 2-year Device Plan options!