The circular economy is a model of production and consumption to address the relentless depletion of resources and the accumulation of waste. In the circular economy literature, there are sparse suggestions that Product-Service Systems (PSSs) have the potential to produce closed-loop resource flows. This study explored this potential using a systematic literature review focused on the use phase and obsolescence. We identified twenty-one PSS elements that contribute to closed loops and categorised them by six architectural levels, i.e. services, resources, stakeholders, contract, value delivery, and systems and tools. We then structured the PSS elements and their contributions to closed loops under four subfunctions and consolidated them in a novel framework. Intercepting and transitioning obsolete resources are subfunctions demanded by a PSS to achieve an operational solution. Stating and governing resource lifetime are subfunctions wanted by a PSS to improve the solution. The results call for a functional approach to PSS design and consideration of obsolescence of products, components and materials. The implications of the results are that PSS elements contribute to achieving circularity by satisfying specific subfunctions and the data in the framework provide a basis for selecting suitable PSS elements.