Usage-Based Billing is a pricing model where customers are charged based on their actual usage of a service or product. This approach is commonly used in industries like telecommunications, utilities, and cloud computing, allowing customers to pay only for what they consume. For example, a customer may pay for the number of gigabytes of data they use rather than a flat monthly fee. This billing method can be beneficial for both businesses and consumers. It provides flexibility for customers who may not need a consistent level of service, while businesses can better align their revenue with customer demand. Overall, usage-based billing promotes fairness and transparency in pricing.