Which option allows users to pay based on performance in Azure SQL Database?

The option that allows users to pay based on performance in Azure SQL Database is a serverless database.

In a serverless database configuration, customers are charged based on the resources consumed, such as the compute used per second, rather than a fixed amount for a provisioned performance level. This model is especially beneficial for workloads with varying or unpredictable usage patterns, as it allows for automatic scaling of compute resources. When the database is not in use, it can pause automatically, helping to optimize costs while ensuring that you only pay for the resources actually consumed during active periods.

This flexibility is a key advantage for scenarios like development, testing, or small applications where demand can fluctuate significantly. It contrasts with provisioned databases, where users pay for a set amount of resources regardless of actual usage, making them less efficient for variable workloads.