Prepaid refers to a payment method where a customer pays for a product or service in advance, rather than after using it. This approach is common in various industries, including mobile phone services, where users buy a prepaid phone plan that allows them to use a certain amount of data, talk time, or text messages until the balance runs out. In addition to mobile services, prepaid options are available for gift cards, utilities, and subscriptions. These methods help consumers manage their budgets by limiting spending to the amount they have already paid, avoiding unexpected charges or bills.