<p>A method and a system (102) for administering pay-per-use (PPU) licensing of software applications are disclosed. The system (102) comprises a processor (202-1) and a memory (206-1). The memory (206-1) comprises an administrative module (212) configured to generate a license file based upon a request sent by a user. The license file is used by the user for accessing a software application. The administrative module (212) is further configured to receive a log file from the user. The log file comprises a track of at least one of a number of usages of the software application and a time period of the software application. The memory further includes an assessment module (214) configured to determine a validity of the license file based upon the log file.</p>