I would of thought it would work fine. But you'll obviously be charged for data usage. It takes about 100kB to download an item.
With mostly monthly contracts, you get a data allowance free of charge.
On pay as you go, you dont get the option to set up a personal hotspot from what I've found anyway. I've looked around in all the settings, and its just not there. I also dont have enough (or any) people who need to contact me all the time (or ever sadly...) to prompt me into switching on to a contract.
Unless there is a way to enable personal hotspots on a pay as you go iphone 5, I'm afraid I'll be stuck heading to a store and hoping their Nintendo Zone works.