# What is a prepaid subscription?

> Source: https://zubs.app/glossary/prepaid-subscription
> Title: What Is a Prepaid Subscription? Definition, Example — Zubs
> Author: Manuel Gutmann (https://zubs.app/authors/manuel-gutmann)
> Published: 2026-10-02
> Updated: 2026-10-07
> Language: en

## Short answer

A prepaid subscription is a subscription where the customer pays for several deliveries upfront and then receives them over time, for example by paying for six months at once and getting a delivery every month. Billing and delivery run on different schedules: one charge, many shipments.

## How does a prepaid subscription work?

A prepaid plan has two rhythms: how often the customer receives an order (the delivery interval) and how many of those deliveries one payment covers.

**Example (made-up numbers):** a tea shop sells a monthly box at €20, or the same box prepaid for 6 months at 15% off. The prepaid customer pays 6 × €20 × 0.85 = **€102** once and receives a box every month; after six deliveries, the next payment covers the next six. A pay-as-you-go customer pays €20 every month instead.

## Why do prepaid subscriptions matter?

They bring cash in earlier and lock in a longer commitment, which is why they're common for gifts and for products customers already trust. The trade-off is flexibility: what has been paid for is fixed. Customers can't swap products or change the interval of deliveries they've already paid, and a larger upfront amount can put off first-time buyers.

Prepaid also helps products that take a while to show a result. One payment for several deliveries carries the customer past the first renewals, when many pay-as-you-go subscribers reconsider.

## How does Zubs handle prepaid subscriptions?

In a Zubs [subscription plan](https://zubs.app/features/subscription-plans), any delivery interval can be offered prepaid, with its own discount. The product-page widget shows the upfront total next to the price per delivery, and the customer portal lists the paid deliveries under each payment.

## Bottom line

Prepaid means one payment, several deliveries. It suits committed customers and gifting; pay-as-you-go suits customers who want to change things as they go. Many shops offer both side by side.

## Frequently asked questions

### What's the difference between prepaid and pay-as-you-go?

Pay-as-you-go charges once per delivery. Prepaid charges once for a block of deliveries.

### Can a prepaid subscription be changed?

Not in what gets delivered or how often. What has been paid for stays fixed until the next payment.

### Can I give prepaid a bigger discount?

Yes. Each delivery interval in a Zubs plan has its own discount, so a prepaid option can carry a higher one.

## Related

- [Feature: subscription plans, prepaid, anchors and cutoffs](https://zubs.app/features/subscription-plans)
- [Glossary: selling plan](https://zubs.app/glossary/selling-plan)
- [Glossary: MRR](https://zubs.app/glossary/mrr)
- [Help center: creating subscription plans](https://help.zubs.app/docs/subscription-management/create-subscription-plan/)