Definition, Meaning & Synonyms

pay-as-you-go

adjective

/ˈpeɪ əz juˈɡoʊ/

Definition

A payment system that charges customers for services or products as they use them, rather than requiring upfront payments.

Examples

Many mobile phone plans offer a pay-as-you-go option for flexibility.
The pay-as-you-go method allowed the company to manage its cash flow more effectively.
With a pay-as-you-go energy plan, you can monitor your usage and costs more easily.

Meaning

The term ‘pay-as-you-go’ refers to a financial model where individuals or businesses pay for a service only when they need it, instead of paying in advance or committing to a long-term contract. This model is commonly used in telecommunications, utilities, and various subscription services.