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A prepaid mobile device, also known as a pay-as-you-go (PAYG), pay-as-you-talk, pay and go, go-phone, prepay, or burner phone, is a mobile device such as a phone for which credit is purchased in advance of service use. The purchased credit is used to pay for telecommunications services at the point the service is accessed or consumed.
The history of the prepaid mobile phones began in the 1990s when mobile phone operators sought to expand their market reach. Up until this point, mobile phone services were exclusively offered on a postpaid basis (contract-based), which excluded individuals with poor credit ratings and minors under the age of 18 (the typical age of contractual.)
Subscriber counts include what each companies quarterly report states, whether it be just postpaid and prepaid (as in the case of Boost Mobile and UScellular) or a combination of postpaid, prepaid and fixed-wireless access as in the case of AT&T, T-Mobile and Verizon).
Consumer Cellular offers low-cost, [22] no-contract monthly cellphone plans with simple cutoff points to offer flexibility. [23] Its cellphone selections include basic flip phones from Doro (of which the provider is the exclusive U.S. carrier) aimed toward seniors [24] as well as budget and premium Android smartphones from Motorola and Samsung.
Amazon sells prepaid wireless services and Boost Infinite became the first postpaid wireless service sold on the online retail. Amazon Prime members are automatically pre-qualified to sign up for Boost Infinite's service. [3] [4] On July 17, 2024 Boost Infinite was merged into a rebranded Boost Mobile. [5] [6]
Postpaid service mobile phone typically requires two essential components in order to make the 'post-usage' model viable: Credit history/Contractual commitment. This is the basis on which the service provider is able to trust the customer with paying their bill when it is due and to have legal recourse in case of non-payment
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