The act of acquiring digital content or services without immediate payment, with the understanding that the associated cost will be billed at a later date, represents a deferred billing arrangement. For instance, a user might access a premium feature on a mobile application, incurring a charge that is only applied to their account at the end of the billing cycle.
This deferred payment model offers several advantages. It can enhance user experience by providing immediate access to content or services without requiring upfront financial commitment. Furthermore, it can facilitate increased consumption, as users may be more inclined to explore features or content knowing that payment is delayed. Historically, this type of transaction has been prevalent in subscription services and utility billing, but its application is expanding across various digital platforms.
