---
title: "What is Product as a service? | Chargezen"
description: "A business model where customers pay a recurring fee to use a physical product, often with upkeep, upgrades or refills included, instead of buying it outright."
url: "https://chargezen.com/glossary/product-as-a-service"
lang: "en"
---

Canonical URL: https://chargezen.com/glossary/product-as-a-service

# Product as a service

Product as a service (PaaS)

Subscriptions

A business model where customers pay a recurring fee to use a physical product, often with upkeep, upgrades or refills included, instead of buying it outright.

## What is Product as a service?

With product as a service, the customer pays for the result rather than owning the thing. The brand keeps ownership, or bundles the product with ongoing service, and charges on a schedule. **Common forms:** - **Rental and leasing,** such as furniture, baby gear or clothing rented by the month. - **Device plus refills,** such as a water filter, razor or printer sold at low cost with a refill plan. - **Hardware plus software,** such as a fitness device with a monthly app membership. - **Usage-based service,** where the customer pays per use or per amount consumed. **Why brands choose it:** - A lower upfront price makes it easier to say yes. - Recurring revenue replaces a single sale. - Returned products can be refurbished and rented again, which can cut waste. - An ongoing relationship gives the brand chances to upgrade and cross-sell. **What makes it hard:** - The brand carries the cost of the product until fees pay it back. - Returns, cleaning, repairs and damage need clear rules. - Contracts must say plainly what happens if a customer stops paying or wants to leave early. Product as a service overlaps with subscription commerce. The difference is ownership: a coffee subscription sells the beans, while a coffee machine on a monthly plan sells the use of the machine.

## Example

A brand sells a $400 air purifier, or offers it for $25 a month with a replacement filter every quarter and free repairs. Customers who choose the plan pay $300 a year, keep getting filters and never buy the machine.

## Why Product as a service Matters

It turns an expensive one-time purchase into an easy monthly decision, and turns one sale into years of revenue.

## Explore More Terms

Browse our complete glossary of e-commerce and subscription terms.

[View Full Glossary](https://chargezen.com/glossary)