Credit-based pricing gives customers a pool of pre-purchased credits that they draw down as they use the product. It provides revenue certainty for the vendor through upfront payments while giving customers flexibility over when and how they consume.

Example: A SaaS platform sells credits in packages of 1,000 for $500. Each AI-generated document costs 10 credits. A customer who buys 5,000 credits can generate up to 500 documents whenever they choose, with no monthly commitment.