Choosing between prepaid credits and progressive billing for usage-based pricing presents distinct advantages and challenges. Prepaid credits offer customers predictable spending and flexible usage by purchasing a set amount upfront, but they can result in service interruptions and the inconvenience of frequent recharges. In contrast, progressive billing provides real-time transparency and scalability by charging based on actual usage, yet it may lead to fluctuating bills and requires complex setup. Lago's billing infrastructure supports both models, offering features like credit management and automated invoicing to ensure a seamless experience, allowing businesses to tailor billing to their customers' preferences without the complexities typically associated with either model.