Prepaid subscriptions collect payment upfront for multiple billing periods, often at a discount. This model improves cash flow and locks in customer commitment. Common structures: - 3-month prepaid (5-10% discount) - 6-month prepaid (10-15% discount) - 12-month prepaid (15-25% discount) Benefits for merchants: - Improved cash flow - Lower payment processing fees - Reduced churn during prepaid period - Higher customer commitment Considerations: - Refund policies for early cancellation - Recognition of revenue over time (accounting) - Customer expectations for flexibility