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Subscription billing & Payments for AI

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March 11, 2025 What we learnt about pricing while working with AI companies

Like most AI startups, even ChatGPT is contemplating Usage-based billing (UBB) with a credit system. While there’s enough hype about UBB and it may seem the norm these days, I believe ChatGPT should stick to fixed price (for now). Because as natural it may sound to simplify the billing, users would end up second-guessing how many credits each task will consume.

Here’s what we’ve learnt at Stykite, working with AI companies:

1. Avoid “Range Anxiety” - Stick to fixed pricing tier first. This reduces any friction to try out your product.

2. UBB Should Be Optional and Clear - If extra usage is allowed, it should be based on clear actions, not credits. Do not make your users convert actions into credits into balance remaining. It’s a terrible terrible experience.

3. The large shift towards UBB that you read on LinkedIn is only half the story. Most of these shifts have been in motion for months and some of these SaaS companies have slowly influenced finance orgs of their customers to work out the value vs cost. No one would do this exercise with you if you’re onboarding your customer for the first time. Get in easily, then consider UBB.

4. Hybrid pricing seems to be resonating well - Have a fixed price per plan, have an option to have more usage + UBB. BUT - Make sure the value to your customers are NOT credits, but actions. For example: Per Run, Per Outcome etc etc.

Finally - ensure that your billing system is flexible enough to support pricing transitions and experiments without disrupting the customer experience. It doesn’t have to be as seamless as Stykite, but having a tool that complements these experiments is key.

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February 24, 2025 Subscription billing & payments for AI

Why We Built This
Billing for AI startups is broken. All solutions available today were built for traditional SaaS, not for the high-volume, usage-based, and dynamic pricing needs of AI-first businesses. Companies waste months of engineering time hacking together billing instead of focusing on growth. Stykite changes that.


What Makes Stykite Different?

  1. Built for AI-first businesses – No more workarounds for metered, API-driven, or usage-based pricing.

  2. Plug & play setup – No-code UI + developer-friendly APIs, so you can go live in minutes.

  3. Scales as you grow – Supports flat, usage-based, hybrid, and multi-tier pricing models.

  4. Real-time AI cost optimization & forecasting – Know your revenue impact before changes go live.

  5. Handles everything end-to-end – Subscription management, invoicing, payments, and analytics.

Who Should Try Stykite?

  1. AI startups that need a scalable, no-hassle billing system.

  2. Companies building AI Agents, AI APIs, LLM-powered apps, or consumption-based platforms.

  3. Companies that need a reliable billing and payments solution without the overhead of a large team.

  4. Teams that require real-time revenue insights to make data-driven pricing decisions.

We’d love your insights—what’s working well for you, and where can we do better?


👉 Try Stykite: https://app.stykite.com
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Join the conversation: https://discord.gg/HGAxEAfz
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Book a quick call: https://meetings.hubspot.com/vibhanshu-karn

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Stykite is the fastest way to launch your subscription billing, usage based pricing & payments. Traditional billing systems are too slow and unnecessarily complex.