Paddle vs Stripe
Pricing
Paddle: 5% + 50c per transaction
Stripe: 2.9% + 30c per transaction
Description
Paddle: Payment platform that handles global taxes for you: they are the seller, you get paid net
Stripe: Payment processing platform with APIs for online businesses
Pros
- 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
- Working payment flow in under an hour with Checkout or Payment Links
- Handles 135+ currencies so you can sell globally from day one
- Fraud protection (Radar) included at no extra cost
Cons
- 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
- 2.9% + 30c adds up. Paddle and LemonSqueezy handle taxes but Stripe does not
- Account holds happen without warning and can freeze your revenue for weeks
- No built-in tax compliance: you need Stripe Tax ($0.50/transaction) or handle it yourself
Details
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.
Stripe lets you start accepting payments in an afternoon: no merchant account, no bank meetings, no weeks of paperwork. Copy a few lines of code (or use no-code Payment Links), and you have a working checkout. That is why almost every solo founder starts here.
The documentation is genuinely excellent: it is one of the best developer docs on the internet, payments company or not. The dashboard shows you revenue, subscriptions, and customer data clearly. The catch: Stripe is a payment processor, not a merchant of record. That means you are still responsible for sales tax, VAT, and invoicing compliance. If selling internationally scares you, look at Paddle or LemonSqueezy instead.
Verified
