Usage-based pricing: A win-win for Fintech buyers and vendors

The time is right for more Fintechs and the Financial Services industry to adopt usage-based pricing. In our latest article, Hrishi Rajadhyaksha (Senior Director, UK Fintech/FS-tech Lead at Simon-Kucher) and Marek Rubasinski (VP Strategy, Business Development & Partnerships at m3ter) discuss how UBP is uniquely poised to offer a win-win for both buyers and sellers.

Decisions made in business, especially those around pricing, rarely feel like they benefit both sides. If a vendor raises prices, that means the customer has to pay more. If the customer negotiates for a discount, the vendor takes a margin hit.

Finding something that can be a win-win for both buyer and seller is a refreshing change of pace. One such strategy is usage-based pricing (UBP), also known as consumption-based pricing), where customers are charged based on how much they use a product or service.

At the simplest level, UBP can be a win-win because 1) the vendor makes more money as usage…