Usage-Based Pricing is a pricing model where customers pay based on their actual usage of a product or service. This approach allows businesses to charge for what customers consume, making it a flexible option for both parties. Common in industries like telecommunications and cloud computing, it aligns costs with customer needs. This model can benefit customers by providing lower costs during periods of low usage, while businesses can potentially increase revenue during peak usage times. Overall, usage-based pricing encourages efficiency and can lead to more satisfied customers, as they only pay for what they truly use.