Mercury vs Paddle
Pricing
Mercury: Free for basic, paid tiers available
Paddle: 5% + 50c per transaction
Description
Mercury: Banking built for startups
Paddle: Payment platform that handles global taxes for you: they are the seller, you get paid net
Pros
- Beautiful UI
- Fast account opening
- Good for bootstrapped + VC-backed
- Merchant of record means they handle VAT, sales tax, and invoicing worldwide
- Built-in subscription management with dunning and recovery
- You never have to file taxes in foreign countries
Cons
- US-focused
- Not a full bank (partner bank model)
- 5% + 50c is nearly double Stripe's rate
- Approval process required: they review your business before you can start
- Less flexibility than Stripe for custom checkout flows
Details
Mercury is banking that doesn’t suck. Founded by Immad Akhund, designed specifically for startups. Clean interface, fast onboarding, serves both VC-backed and bootstrapped companies. Valued at $1.6B+. If you’re US-based and tired of traditional banks, this is the move.
Paddle takes the scariest part of selling software internationally (tax compliance) and makes it someone else’s problem. They act as the merchant of record, which means they are legally the seller. They collect the payment, handle VAT/sales tax in every country, and pay you a net amount. You never file a foreign tax return.
The price for this peace of mind is real: 5% + 50c per transaction versus Stripe’s 2.9% + 30c. For many SaaS founders selling to customers in the EU, UK, and beyond, the math still works out: hiring an accountant or using a tax service would cost more. Paddle requires approval before you can start, so apply early.
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