MC1186367 – (Updated) Announcing the new pay-as-you-go experience in Microsoft 365 Admin Center

Product:

Copilot, Copilot Chat, Microsoft 365 admin center, Microsoft 365 Copilot, SharePoint

Platform:

Online, US Instances, World tenant

Status:

Change type:

Admin impact, New feature, Updated message, User impact

Links:

Details:

Summary:
Microsoft 365 Admin Center introduces a new pay-as-you-go experience for managing Backup and Copilot billing starting January 15, 2026. Admins can create billing policies, set budgets, and view usage under the Billing node. Migration details for existing Backup customers will be announced later. No immediate action required.

Details:
Updated December 17, 2025: We have updated the document link. Thank you for your patience.
[Introduction]
We're introducing a new pay-as-you-go (PAYG) experience in the Microsoft 365 Admin Center (MAC). This update provides a centralized way to manage metered services such as Microsoft 365 Backup and Copilot under the Billing node.
[When this will happen:]
General Availability:
Available to new Microsoft 365 Backup and all Copilot customers starting January 15, 2026 (previously December 15, 2025).
Migration path for existing Backup customers will be announced later.

Change Category:
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Scope:
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Release Phase:

Created:
2025-11-15

updated:
2025-12-18

Task Type

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Docu to Check

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MS How does it affect me

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MS Preperations

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MS Urgency

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MS workload name

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summary for non-techies**

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Direct effects for Operations**

User Experience Disruption
If the new PAYG experience is implemented without proper preparation, users may face confusion regarding billing policies and usage tracking, leading to potential overages or unexpected charges.
   - roles: Admins, Finance Team
   - references: https://learn.microsoft.com/microsoft-365/services/update-pay-as-you-go-setup-billing-node?view=o365-worldwide

Operational Inefficiency
Lack of preparation for the new billing policies may result in inefficient resource allocation and budgeting, causing delays in project funding and resource management.
   - roles: Admins, Project Managers
   - references: https://learn.microsoft.com/microsoft-365/services/update-pay-as-you-go-setup-billing-node?view=o365-worldwide

Configutation Options**

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Data Protection**

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explanation for non-techies**

Microsoft is rolling out a new pay-as-you-go (PAYG) billing experience in the Microsoft 365 Admin Center starting January 15, 2026. This change affects how admins manage billing for services like Microsoft 365 Backup and Copilot. Imagine this update as moving from a fixed monthly subscription to a more flexible plan, similar to switching from a cable TV package to a streaming service where you pay for what you watch.

With this new system, admins will have a dedicated page under the Billing section where they can set up and manage billing policies. Think of it like having a dashboard in your car that shows you how much fuel you're using, allowing you to budget and plan accordingly. Admins can set budgets and receive notifications when spending reaches certain levels, much like setting a spending alert on your credit card.

The update also allows for departmental billing, which is like having separate tabs for different groups at a restaurant, so each department can track its own expenses. This feature will be available for Backup customers in the first quarter of 2026.

Additionally, admins can now create subscriptions and resource groups directly in the Microsoft 365 Admin Center without needing to navigate to Azure, streamlining the process like ordering groceries online without needing to visit multiple stores.

For existing Backup customers, migration details will be provided later, so there's no immediate action required. Admins should keep an eye on announcements for these updates and review the new PAYG page to familiarize themselves with the changes. It's like being informed about a new traffic route that will make your daily commute smoother once it's open.

No compliance issues have been identified with this update, but it's always a good idea to review any changes to ensure they align with your organization's policies. For more detailed guidance, Microsoft documentation will be updated before the rollout.