What is Usage Metering?

Usage metering is an essential tool for businesses operating on usage-based billing models. It involves monitoring and recording the consumption of a service or product over time, transforming raw data into meaningful metrics, and tracking actual usage. This system benefits companies by enabling accurate billing, real-time insights, customization and flexibility in pricing, optimizing customer experience, and promoting growth and scalability. Usage metering is particularly useful for businesses offering cloud infrastructure services, transaction processing platforms, or software-as-a-service (SaaS) solutions.