Payment made in advance for goods or services before they are received or delivered. Money paid before it is due or required.
From 'pre-' (before) + 'payment', where payment comes from Old French 'paier' (to pay), from Latin 'pacare' (to pacify, settle). The concept formalized with modern banking and commerce.
Prepayment systems revolutionized telecommunications - from pay phones to mobile phone credits, they solved the problem of billing customers with uncertain creditworthiness! Many subscription services now use prepayment models to ensure steady cash flow.
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