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What is pay-as-you-go?

What is pay-as-you-go? Here are some definitions.

Noun
  1. (economics) A financial policy by which capital projects are financed from current revenue in the operating budget rather than through borrowing.
  2. (Britain) a payment method where credit is purchased in advance, used in small amounts and topped up when required. Used especially of mobile phones and transport ticketing.
  3. (Britain) a mobile phone on such a tariff
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Examples
People accessing the Net outside these hours will be charged on a pay-as-you-go basis.
This prepaid service is marketed on a pay-as-you-go basis, without an bill or subscription, and can be considered as a prepaid mobile service.
Also, in an attempt to curb costs, we have our children on pay-as-you-go mobiles rather than account phones.
As an example, they often use pay-as-you-go cellphones as a means of avoiding police wiretaps, changing them frequently.
London Mayor Boris Johnson is very proud of his pay-as-you-go rental bicycles installed all over London.
I'm currently using a dumbphone with a pay-as-you-go carrier and would like to switch to a pay-as-you-go smartphone.

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