PostPay (postpay, postpayment) — a payment model in which the customer first uses a product or service and pays for it later. Charges accumulate over a certain period, after which the service charges the required amount or issues an invoice.
Postpayment is used in advertising, cloud services, mobile communications, and other areas.
How PostPay works
Postpayment terms depend on the specific service. Money may be charged automatically when the billing threshold is reached or on a set date. In some services, payment is made against an invoice issued for services already received.
In traffic arbitrage, PostPay is most commonly used when working with Ads Managers. For a media buyer, one of the main advantages of postpayment is that there is no need to freeze the entire advertising budget in advance on the platform balance.
This is especially convenient when running large traffic volumes: the ads are already running, while the payment is charged later. As a result, the team has more flexibility in managing its working capital.
