Asset-as-a-Service (AaaS): ‘Pay-per-use’ refers to a usage-based financing model and is therefore a form of leasing. As with leasing, ownership of the asset is not transferred to the customer/user in ‘asset-as-a-service’ models, but remains with the manufacturer. The advantage is that the customer/user does not pay a fixed leasing instalment for the asset, but only pays when they actually use it (“pay-per-use”), thereby preserving their liquidity. This affords the customer financial flexibility. Billing can be automated through integration with the manufacturer’s Internet of Things (IoT) platform. To ensure that the manufacturer does not bear the sole risk in terms of usage and profitability, it engages financing partners. (Publication date: 1 September 2021)