Postpaid plans, also known as contract plan, is a type of mobile phone service plan in which customers pay for their service at the end of each billing cycle. This differs from a prepaid plan, where customers pay for service in advance.

With a postpaid plan, customers are billed after using the mobile services, allowing them to pay in monthly installments. The bill details the services used during the previous month such as voice minutes, text messages (SMS), and mobile data. Postpaid plans require a credit check and contract commitment for 1-2 years typically. Customers are charged activation fees, but are often eligible for free or discounted phones when signing up.

The major benefits of postpaid phone plans are the ability to pay monthly, access to newer phone models, and unlimited data options. However, postpaid plans also come with a greater financial commitment, credit requirements, and contract obligations. Prepaid options provide more flexibility and control over spending.