A Prepaid Plan is a type of payment arrangement where customers pay for services in advance, rather than receiving a bill after usage. This is commonly seen in mobile phone services, where users buy a set amount of data, talk time, or text messages before using them. Once the prepaid balance is exhausted, the service stops until the user adds more funds. These plans offer flexibility and control over spending, as users can choose how much to pay upfront. They are often popular among those who want to avoid unexpected charges or who may not use services frequently, making them a budget-friendly option.