Prepaid or postpaid: which model is best for your bar?

One of the questions we hear most from customers is: should I go prepaid or postpaid? The short answer is: it depends. But don't worry, we will explain everything in this article so you can make the best decision for your business.

Understanding prepaid

In the prepaid model, customers add credit before consuming. In other words, it is like having a digital wallet inside your establishment.

Advantages of prepaid

First, let's explore the benefits of this model.

1. Natural loyalty

When customers load credit and don't use it all, they naturally have a reason to come back. And the numbers are impressive: for every R$ 100 thousand in credits added monthly, about R$ 2 thousand remain as leftover credit. Over time, this can accumulate from R$ 200 thousand to more than R$ 1 million in active credits, depending on the size of the operation.

On top of that, this leftover credit is a powerful relationship tool. For example, you can send personalized messages to customers with idle credit, offer extra bonuses to encourage them to return, and create specific reactivation campaigns.

2. Simplified exit control

If you have an operation where it is hard to control entry and exit, or where lines at the register hurt the experience, then prepaid is ideal. In this case, customers are free to leave whenever they want, without going through a payment process at the end.

3. Favorable cash flow

Likewise, leftover credit helps the establishment's cash flow. However, it is important to remember: this money belongs to the customer. Therefore, it must be well managed and available whenever they want to consume.

Disadvantages of prepaid

On the other hand, it is also important to consider the challenges of this model.

1. Friction in consumption

Picture this: customers are enjoying the atmosphere, have already spent R$ 82 of the R$ 100 they loaded, and want to order a R$ 20 plate of fries. As a result, they have to go to the register to top up because of R$ 2. This friction can discourage additional consumption.

2. Heightened perception of spending

In addition, customers are more clearly aware of how much they are spending: "I put in R$ 100, then another R$ 50, and it's gone again." Therefore, this greater awareness can inhibit spontaneous consumption.

3. Dependence on top-up infrastructure

To minimize the disadvantages, it is essential to have:

• A PIX top-up option in the app
• Mini self-service kiosks for top-ups
• Plus fast registers with no lines

Understanding postpaid

In the postpaid model, customers consume first and pay on the way out. In short, it is the traditional tab format.

Advantages of postpaid

Now, let's look at the benefits of the postpaid model.

1. Frictionless consumption

Customers don't need to worry about top-ups. Want another draft beer? Just order it. Want to split the bill with friends? Easy. That way, each person orders what they want without having to calculate in advance how much they will spend.

2. Potential for a higher average ticket

Without the psychological barrier of watching credit run out, customers tend to consume more naturally. As a result, the decision to consume is smoother and more spontaneous.

3. Easier social experience

Likewise, splitting tabs, paying together with friends and adjusting the bill at the end are much simpler processes with postpaid.

Disadvantages of postpaid

However, this model also has its challenges.

1. Exit control required

You need to make sure all customers go through the register before leaving. As a result, in open operations or those with multiple exits, this can be challenging.

2. Payment bottleneck

Especially at events with a show or when everyone wants to leave at the same time, long lines form at the register. Consequently, the customer's last impression can be negative if they wait too long to pay.

3. Mandatory tab opening

Likewise, every customer who arrives needs to open a tab, which can create a line at the entrance during peak times.

The hybrid model: the best of both worlds

More and more establishments are adopting hybrid operations, adapting the model to the context. This way, they can take advantage of the strengths of each system as needed.

Examples of hybrid operation

In practice, here is how some establishments are implementing this.

Case 1: bar with events

• Regular days: Initially, postpaid for 100-200 people, with easy entry and exit control
• Event days: On the other hand, prepaid for 500+ people, eliminating payment lines at the exit

Case 2: airport

• Postpaid: First, for passengers with time to spare who want to sit down and enjoy at a relaxed pace
• Instant-order kiosk: Second, pay and pick up right away for those in a hurry
• Prepaid via QR code: In addition, customers generate a specific credit (e.g., R$ 30) and then consume
• 24-hour self-pour: Finally, QGerator facing the street when the establishment is closed

How to choose the best model

Consider these factors when making your decision:

1. Type of audience

• First, a young, connected audience adapts well to both
• On the other hand, a traditional audience may prefer postpaid
• Events with high turnover, on the other hand, undoubtedly work better with prepaid

2. Physical characteristics

• Food park or open space: Initially, prepaid makes control easier
• Enclosed bar with a single exit: In contrast, postpaid can work well
• Busy street: In this case, definitely consider a hybrid operation

3. Type of operation

• Self-pour draft beer dispenser: Here, without a doubt, prepaid is essential
• Traditional table service: In turn, postpaid flows naturally
• Seasonal events: Therefore, you need the flexibility to switch between models

4. Team structure

• Do you have enough staff to control the exit? Then postpaid is clearly viable
• Lean team? Then prepaid reduces the need for control

Features that make a difference

Regardless of the model you choose, the right technology offers features that undoubtedly boost your results.

Segmented customer groups

Regardless of the model you choose, you can create strategic segments. For example:

• VIP group: First, a postpaid limit of R$ 2,000 (versus the standard R$ 500)
• Differentiated cards: In addition, exclusive colors or artwork
• Personalized discounts: Likewise, different percentages per segment
• Flexible criteria: Finally, top 100 customers of the year, visit frequency, total amount consumed

Branch module

For establishments with more than one location or distinct areas, you can in fact:

• First, use the same card at all locations
• In addition, each branch can have a different model (one prepaid, another postpaid)
• Equally important, keep a unified customer registry
• Example: Lastly, an events area upstairs with prepaid, while the main room runs on postpaid

Technology as an enabler

The choice between prepaid and postpaid does not have to be final. In fact, with the right technology, you can:

• Switch models depending on the day or event
• Combine models in the same operation
• Test and then adjust based on real data
• Adapt quickly to changes in the business

Many systems limit you to a single model. In contrast, MyTapp was built to give you total flexibility. That way, you choose the best model for each situation, or even create your own unique combination.

Conclusion

There is no single answer. On one hand, prepaid brings loyalty and operational control. On the other hand, postpaid offers frictionless consumption and a better social experience. In addition, the hybrid model lets you take the best of each depending on the context.

The most important thing is, without a doubt, to understand your business and your audience, and to have the flexibility to adapt. After all, with 10 years of experience and hundreds of operations followed, we have seen that the most successful establishments are certainly those that use technology as a strategic tool, not as an operational limitation.

Want to understand which model makes the most sense for your operation? Get in touch with our team and together we will build the best solution for your business.

Listen to the full episode

This content was based on the first episode of MyTapp Talks, featuring Mateus Bodanese and Carlos Eduardo Matos.

Watch on YouTube: Prepaid vs Postpaid - Which is the best model?

Listen on Spotify: MyTapp Podcast - Episode #01

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