Usage-based pricing models like Pay As You Go (PAYG) are gaining traction in the SaaS industry for their potential to boost revenue and customer retention compared to traditional subscription models. These models require customers to pay based on their actual consumption, such as hours used or transactions made, and are supported by major cloud providers like AWS, Google, and Azure. A critical decision for businesses is whether to implement prepaid or postpaid billing, each with its own advantages and challenges, including cash flow management and customer budgeting. Billing frequency and measurement are vital, requiring systems that can accurately track and report usage, potentially leveraging tools like Moesif for analytics and quota notifications to prevent customer surprises. The implementation of self-serve dashboards providing visibility into usage metrics can enhance the customer experience by allowing them to manage their consumption and costs effectively. Despite the benefits, these pricing models are more complex to implement and require careful management to ensure transparency and customer satisfaction.