What Is Prepaid Mobile Service? How Does It Work?

Posted onJan 8, 2022

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Prepaid Recharge

What is Prepaid Recharge?

In simple words, prepaid recharge is a phone service where you pay in advance for the services you need. It may be for a phone or mobile. Before you begin using the service, you must pay a particular amount of money, which is transformed into mobile credit that may be used for:

Making phone calls

Sending Messages & For Using Mobile Data

The credit available for each of the above usage types is determined by your Prepaid plan and the amount you recharge. The credit will expire after a predetermined period of time, such as 28 days, 56 days, etc., depending on your plan and recharge. After credit is used up or after validity expires, you are required to top-up the credit using online payment portals like Payrup, Paytm, BHIM, etc. Some other names by which prepaid is known are: Go-Phone, Pay As You Go, or Prepay. Subscriber Computing, Inc., an Orange County firm created and run by Arlene Harris from 1986 to 1998, invented the prepaid mobile service.

What do you mean by Prepaid Sim?

Prepaid Sim Meaning can be explained easily. Prepaid Sim is the one for which you need to make the payment upfront, before using the service. Prepaid Sim also means that you have a fixed limit for spending, after which you have to top up again to continue using their services. 

Basic Terminologies Associated With Prepaid

What is the meaning of topup in recharge? Topup in recharge means the addition of credits to the sim by making a payment to continue the use of your prepaid sim.

What is a Standard Recharge?

A standard recharge is the normal recharge package that your service providers provide. Any prepaid recharge has an expiry date. It also provides a fixed amount of credit, the exhaustion of which can lead to the cancellation of services till the next top-up. The credit received can be used for making calls, sending messages or for using mobile data.

Is Prepaid Better Than Postpaid?

This is a controversial question and can be answered only based on the person asking this question. Prepaid and Postpaid should be chosen based on the person’s requirements. If you have really less use of a sim card, other than to make a few occasional calls, Prepaid is the best option for that. You only need to recharge it when you need it. But if you are a person with a considerable amount of phone usage, compare both prepaid & postpaid plans, and see which suits your need the best.

Prepaid Recharge Service Providers:

Reliance Jio, Airtel, Vi (Vodafone-Idea), BSNL, MTNL etc are the most popular telecom operators in India that offer prepaid recharge services. These major players have their own USP which attracts & retains customers. Let us see about each of these players in a little bit of detail.

Reliance Jio

Reliance Jio Infocomm Limited, popularly known as Jio, is an Indian telecommunications firm headquartered in Mumbai, Maharashtra, India, and a subsidiary of Jio Platforms. Started by Ambani, it runs a countrywide LTE network that covers all 22 telecom circles in the country. It provides voice service along with its high speed 4G Internet Connection. Read more about the most popular Jio Plans as well as recharge. Click here for Jio Prepaid Recharge on Payrup.  Visit "Latest JIO Prepaid Recharge Plans" to know more about plans and offers by prepaid.


Bharti Airtel Limited, often known as Airtel, is an Indian telecommunications services business headquartered in New Delhi. It has operations in 18 South Asian and African nations, as well as the Channel Islands. Depending on the country of operation, Airtel offers 2G, 4G LTE, 4G+ mobile services, fixed-line broadband, and voice services. Airtel's VoLTE technology had also been pushed out across all Indian telecom circles. It is India's second-largest mobile network operator and the world's third-largest mobile network provider. In Millward Brown and WPP plc's first-ever Brandz ranking, Airtel was awarded India's second most valuable brand. Visit "Latest Airtel Prepaid Recharge Plans" to know more about plans and offers by prepaid.

Vi (Vodafone-Idea)

Vodafone Idea Limited, or Vi, is an Indian telecommunications company with headquarters in Mumbai and Gandhinagar. It is a pan-India integrated GSM operator that provides services in 2G, 4G, 4G+, VoLTE, and VoWiFi. Idea Cellular and Vodafone India announced their merger in March 2017 and formed Vi. Vi also offers services such as mobile payments, IoT, enterprise offerings, and entertainment, which are available through both digital and on-ground touchpoints at locations across the country. Read more about popular Vi Prepaid Plans as well as recharge. Click here for Vi Prepaid Recharge on Payrup. Visit "Latest VI Prepaid Recharge Plans" to know more about plans and offers by prepaid.

BSNL (Bharat Sanchar Nigam Ltd)

Bharat Sanchar Nigam Limited (BSNL) is an Indian government-owned telecommunications company based in New Delhi. The Department of Telecommunications, Ministry of Communications, Government of India, owns it. The Government of India incorporated it on October 1, 2000. Its national telecommunications network in India delivers entire telecom services such as mobile voice and internet services. It is the country's largest government-owned wireless telecommunications operator. BSNL offers Landline, Prepaid (also called Indian Telephone Card), Account Card Calling (ACC), Virtual Private Network (VPN), postpaid, and Broadband services. BSNL provides IPTV, which allows consumers to view television over the Internet, as well as Voice and Video Over Internet Protocol (VoIP). Read more about popular BSNL Prepaid Plans as well as recharge. Click here for BSNL Prepaid Recharge on Payrup. Visit "Latest BSNL Prepaid Recharge Plans" to know more about plans and offers by prepaid.

MTNL (Mahanagar Telephone Nigam Limited)

Bharat Sanchar Nigam Limited owns Mahanagar Telephone Nigam Limited, (MTNL), which is headquartered in New Delhi, India. MTNL operates in India's metro cities of Mumbai and New Delhi, as well as the African island nation of Mauritius. Until 1992, when the telecom market was opened to other service providers, the business enjoyed a monopoly in Mumbai and New Delhi. The company's motto is "Transparency makes us different." The Bharat Sanchar Nigam Limited currently owns 100% of the company's equity. MTNL started offering Fiber-to-the-home (FTTH), triple-play (voice, video & data), and high-speed broadband service in Delhi on November 9th, 2011. On 23rd October 2019, the Indian Government announced the merger of MTNL with BSNL. Read more about popular MTNL Prepaid Plans as well as recharge. Click here for MTNL Prepaid Recharge on Payrup. Visit "Latest MTNL Prepaid Recharge Plans" to know more about plans and offers by prepaid.

Comparison of Prepaid & Postpaid

Let us look in brief the pros and cons of prepaid and postpaid and which connection is best in 2022.



In Prepaid, you have to pay a fixed amount first, then you can use the benefits within the mentioned expiry period.

In Postpaid, You don’t pay anything first, you will receive a bill every month, stating the expenses for the previous month.

Prepaid- Pay First, Use Later. You can fix the amount which you want to use.

Postpaid- Pay Later. This gives us enough data and credits, but in this, we cannot control the amount we spend.

Advantages of Prepaid Over Postpaid:

Can change tariff packs easily: The users do not have to stick to one plan every month. They can shift their plans as per their requirement.

No Bill Shocks:

There are no hidden charges or no extra costs at the end. Whatever you pay, you can use the credits correspondingly.

Have a large variety to choose from:

Now, most service providers offer customers a huge variety of packs to choose from. Customers can choose as per their needs.

Users have 100% control over overspending:

Customers can decide how much they want to spend. They can recharge correspondingly.

Concluding Thoughts:

Hope this article has helped in clearing your doubts regarding Prepaid Mobile Recharge Services. We will be sharing more articles related to each service provider so that you can have a detailed view of the plans, tariffs and benefits of each.

To know about prepaid services visit https://payrup.com/blogs/what-is-prepaid-mobile-service-how-does-it-work !

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