Final answer:
EC2 On-Demand pricing offers a pay-as-you-go model that doesn't require upfront fees or long-term commitments, charging for compute capacity by the hour or second.
Step-by-step explanation:
EC2 On-Demand payment provides pay-as-you-go pricing without upfront fees. This pricing model is designed for those who prefer a flexible, low commitment option where you pay for compute capacity by the hour or second, depending on the instances you run. There are no long-term commitments or upfront payments required. This is in contrast to other pricing options that might offer discounted rates for long-term commitments or reserved capacity.