What does “pay-as-you-go” mean?

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pay as you go meaning

Pay-as-you-go is a term used to describe a specific payment system. This system asks you to pay for a bill when it is due or to pay for a product when you are buying it.

This system is used a lot by mobile phone companies. The services asks you to buy credit which allows you to make calls, send text messages and browse the internet. But there is a limit, once you have used all your credit or exceeded the limit you must prepay and buy more credit.

Here are some more examples:

  • What type of mobile plan do you have? Do you have a pay-as-you-go plan or a pay-monthly plan?
  • A pay-as-you-go mobile plan is perfect for me as I don’t use my mobile phone very often. A set monthly plan wouldn’t be very economical for me.
  • I have a monthly plan and it is great! I pay $20 a month and get free calls and texts to all networks. Whereas with a pay-as-you-go plan I would have to pay for all my calls and texts.

 

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