Insights and updates from the billing world.

Customer Stories

Why PayPal uses Lago for complex billing at enterprise scale

When PayPal wanted to offer billing to merchants on its platform, they didn’t want to build complex billing from scratch and maintain it forever. That’s why they picked Lago. In PayPal’s integrated finance ecosystem, billing was the missing piece. Why It Matters If you're evaluating billing infrastructure in a regulated industry like financial services, PayPal's decision reveals something important: the market has changed. First, complex billing is becoming more important: AI is increasing

Anh-Tho Chuong•2 min read

Why PayPal uses Lago for complex billing at enterprise scale

Product

Embedded software is the biggest growth opportunity for open source

When you link your bank account to Venmo, you're not using Venmo's technology, you're using Plaid. An Uber sends you a ride notification, that originates with Twilio. Maps in Strava, Doordash or Instacart? Powered by Mapbox. These are some of the most successful software companies ever built, and most of their end users have never heard of them. They don't compete for the spotlight — they disappear inside other people's products. In hardware, this model already has a famous name: TSMC. The Tai

Anh-Tho Chuong•Mar 26•5 min read

Embedded software is the biggest growth opportunity for open source

Customers

Insights from our customers on how they use Lago to power their billing.

Customer Stories

How Laravel Cloud Gave Developers Control Over Usage-Based Costs

Anh-Tho Chuong•4 min read

Customer Stories

From 700 to 6,000+ companies: How Blacksmith scales usage-based billing with Lago

Blacksmith’s CI cloud now serves more than 6,000 companies while Lago provides the usage-based billing foundation behind its compute-intensive service.

Anh-Tho Chuong•2 min read

Customer Stories

Why PayPal uses Lago for complex billing at enterprise scale

When PayPal wanted to offer billing to merchants on its platform, they didn’t want to build complex billing from scratch and maintain it forever. That’s why they picked Lago. In PayPal’s integrated finance ecosystem, billing was the missing piece. Why It Matters If you're evaluating billing infrastructure in a regulated industry like financial services, PayPal's decision reveals something important: the market has changed. First, complex billing is becoming more important: AI is increasing

Anh-Tho Chuong•2 min read

Customer Stories

How 1NCE scaled global IoT billing with Lago

Introduction 1NCE disrupted the IoT connectivity industry in 2018 with a bold offer: 10 years of global software and connectivity for €10. The model was simple, affordable, and perfectly suited to low-data use cases like smart metering, asset tracking, and street lighting. But as the IoT market evolved, so did customer needs. Many use cases demanded higher data volumes and faster speeds. In response, 1NCE launched High Data IoT: a pay-as-you-go model offering 5€/GB with speeds up to 25 Mb/s. T

Anh-Tho Chuong•2 min read

Engineering

How to build billing systems that don't become engineering nightmares.

AI

Agent SDK: bill the dollar cost of LLM calls, margin built in

Anh-Tho Chuong•Jul 21•1 min read

AI

We killed our motion design job

We never hired a motion designer. Now we never will. Every major Lago feature now ships with a launch film. A coding agent produces it through a skill we wrote. The skill creates three artifacts: a storyboard, an animatic, and the final film. A human approves the first two. The expensive render only starts after both gates pass. Six videos in, feedback dropped from a dozen rounds to about one. The marginal cost is now one prompt, two approvals, and thirty minutes of unattended rendering. We t

Anh-Tho Chuong•Jul 21•5 min read

Engineering

Removing humans from the loop has become a status symbol.

The pitch: ticket in, code out, revenue up, headcount flat. Then someone, usually someone who manages billions, fresh from shipping a vibe-coded to-do list, asks why everyone cannot do the same. Billing moves money and trust. Healthcare, insurance, security, logistics and infrastructure also change states other people rely on. These companies are not less AI-native. Their workflows are less forgiving. The right mental model is not how far an agent can go. It is where it should stop. 1. The

Raffi Sarkissian•Jul 20•4 min read

Engineering

REST API Design Guide for Billing: Best Practices 2026

Building a robust REST API for billing systems requires careful attention to endpoint patterns, authentication mechanisms, error handling strategies, and API versioning approaches. According to recent API governance research, 68% of API failures in production stem from inadequate design decisions made during the architectural phase rather than implementation bugs [1]. This guide explores proven best practices for designing billing REST APIs that scale reliably, maintain backward compatibility, a

Anh-Tho Chuong•Mar 30•16 min read

Explore the full library of playbooks

Lago Learn covers the billing decisions most teams get wrong, and how to get them right. Playbooks for engineering and finance.

Playbook

How to design usage-based pricing models

Whitepaper

The rise of the finance systems engineer

Guide

Self-hosted vs cloud billing, the complete guide

Cover of the Lago playbook: How to design usage-based pricing models

Product

How we think about building billing infrastructure.

Product

Orb Is Being Acquired by Adyen. Here's What That Means If You're Evaluating Usage-Based Billing Platforms.

Anh-Tho Chuong•Jun 29•8 min read

Product

Chargebee Alternative? Why Engineering-Led Teams Choose Lago for Usage-Based Billing

Chargebee alternative? Compare Lago vs Chargebee on self-hosting, PSP neutrality, and AI/usage billing, plus when Chargebee is still the right call.

Anh-Tho Chuong•Jun 26•7 min read

Product

AI Billing is (mostly) token plumbing

Why we built the Lago Agent SDK, and what we're shipping next. We just released the Lago Agent SDK. Two libraries, Python and TypeScript. They wrap your LLM client and send token usage to Lago for billing. That's the surface. The point is what you stop doing. The token plumbing Every team that shipped an AI feature in the last 18 months built the same thing. Smart search, inbox triage, meeting summaries, coding agents, vibe-coded apps. All of them ended up writing token-extraction middlewar

Raffi Sarkissian•May 26•5 min read

Product

Embedded software is the biggest growth opportunity for open source

When you link your bank account to Venmo, you're not using Venmo's technology, you're using Plaid. An Uber sends you a ride notification, that originates with Twilio. Maps in Strava, Doordash or Instacart? Powered by Mapbox. These are some of the most successful software companies ever built, and most of their end users have never heard of them. They don't compete for the spotlight — they disappear inside other people's products. In hardware, this model already has a famous name: TSMC. The Tai

Anh-Tho Chuong•Mar 26•5 min read

Startup Stories

Lessons from the trenches of building and scaling startups.

AI

We killed our motion design job

Anh-Tho Chuong•Jul 21•5 min read

Startup Stories

Why Replit's $9B Valuation Looks Cheap

Bias check: I'm a YC founder myself, and I have a soft spot for pivot stories. We use Replit at Lago and love it. Lago is a billing infrastructure company, so yes, I spend too much time thinking about how platforms monetize. A $9B valuation on ~$240M in revenue implies a ~37x multiple. Not cheap by traditional SaaS standards. The bet investors are making is that Replit becomes something bigger than a SaaS company. The plateau years Replit was founded in 2016. A REPL (Read-Eval-Print Loop)

Anh-Tho Chuong•Mar 24•6 min read

Startup Stories

Vibe-coding platforms monetize. Their users can't.

Lovable crossed $200M ARR in under a year. Replit charges up to $200/month per seat. Base44 got acquired by Wix for $80M. These platforms know how to monetize. Their users don't. The Shopify lesson The obvious pushback: who cares? Most vibe-coded apps are toys. Mostly true. But in 2025, merchant solutions made up over 75% of Shopify's total revenue. Merchant solutions = payment processing, capital lending, shipping. Everything Shopify earns when merchants transact through the platform. Not

Anh-Tho Chuong•Mar 11•4 min read

Startup Stories

5 years of founder grind

Disclaimer: People gave me “AI slop” comments on my latest article. I’m writing this post without AI, together with my co-founder Raffi and our content lead Finn who helped me edit it (“by hand”). A lot of founders ask me whether they should apply to YC, open-source their product or move to SF. I get it, but I think we’re missing the real depth here. There’s pressure to work 996 (9am-9pm, 6 days a week), to be on top of the latest AI thing, to live in the right place, to “get it right”, accor

Anh-Tho Chuong•Feb 20•9 min read

Latest articles

The most recent insights from the Lago team.

Insights and updates from the billing world.

Why PayPal uses Lago for complex billing at enterprise scale

Customers

How Laravel Cloud Gave Developers Control Over Usage-Based Costs

From 700 to 6,000+ companies: How Blacksmith scales usage-based billing with Lago

Why PayPal uses Lago for complex billing at enterprise scale

How 1NCE scaled global IoT billing with Lago

Get the latest news and updates, no hidden fees, we promise

Engineering

Agent SDK: bill the dollar cost of LLM calls, margin built in

We killed our motion design job

Removing humans from the loop has become a status symbol.

REST API Design Guide for Billing: Best Practices 2026

Explore the full library of playbooks

Product

Orb Is Being Acquired by Adyen. Here's What That Means If You're Evaluating Usage-Based Billing Platforms.

Chargebee Alternative? Why Engineering-Led Teams Choose Lago for Usage-Based Billing

AI Billing is (mostly) token plumbing

Embedded software is the biggest growth opportunity for open source

Startup Stories

We killed our motion design job

Why Replit's $9B Valuation Looks Cheap

Vibe-coding platforms monetize. Their users can't.

5 years of founder grind

Latest articles

How Laravel Cloud Gave Developers Control Over Usage-Based Costs

How to Connect Claude to Your Billing Data with Lago's MCP Server

Lago vs Togai: Which Usage-Based Billing Platform Fits Your Stack?

AI for RevOps: Where It Helps and Where It Doesn't Yet

What Is an AI Finance Assistant? (And How Is It Different from an AI Agent?)

Everyone wants to be the AI gateway

Generative AI in Finance: Separating the Real Use Cases from the Hype

AI Agents in Finance: What They Actually Do Today

Event-Based Billing Explained: Examples & How to Build It

The AI pricing shift nobody priced correctly

What Is Metered Billing? How It Works

By 2027, every AI company will need a billing engineer. Most don't know it yet.

Why Stripe may pay $10B for a router everyone is building

AI API Billing: Token-Based Pricing for LLM Products

Lago vs Orb: Open-Source Billing vs a Billing Specialist Now Inside Adyen

Lago solves complex billing.