What is the difference between monthly tariff and pay as you go?

Mobile phone in handThere are two main types of payment structure for mobile phone owners: monthly tariff or pay as you go.

A monthly tariff involves the user paying a pre-determined monthly charge for using their mobile. This will usually give them access to a package deal, including elements such as free call time, free texts or mobile internet access.

So-called ‘pay as you go’ mobiles are paid for by the user purchasing credit on an ongoing basis, which pre-pays for its use for making calls, sending texts or browsing the internet.

Once the user has exhausted the amount of credit for which they have pre-paid, they need to ‘top up’ their credit in order to continue using their mobile.