E-commerce
Paddle
SaaS billing & tax.
What it is
Paddle is a complete 'Merchant of Record' (MoR) for SaaS companies. Unlike Stripe, which is just a payment processor, Paddle takes on the legal liability for your sales, meaning they handle all international taxes (VAT, Sales Tax), compliance, and fraud for you. This allows software founders to sell globally from day one without worrying about the legal nightmare of tax laws in 200+ countries. It is the ultimate 'hands-off' financial solution for high-growth software companies.
Key features
Merchant of Record
Paddle acts as the seller, taking all legal and tax liability off your shoulders.
Global Tax Compliance
Automatic handling of VAT, GST, and Sales Tax across the entire world.
SaaS Subscriptions
Built-in tools for managing recurring billing, trials, and cancellations.
Managed Support
They handle customer billing queries and refund requests directly.
Strengths and trade-offs
What works well
- Total Tax Compliance: They calculate, collect, and remit all global taxes for you.
- One Provider: Replaces Stripe, TaxJar, and a subscription manager in one tool.
- No Hidden Fees: A simple, all-inclusive commission on every successful sale.
- Instant Global Sales: Sell in any country without needing local entities or tax IDs.
Where it falls short
- Higher Commission: Charges a higher percentage per sale compared to pure processors.
- Less Control: Since they are the merchant, you have less control over the checkout UI.
- Delayed Payouts: Payouts are usually made monthly, not instantly like Stripe.
Who it is for
SaaS Founders and Global Software Companies.
Pick it or skip it
Pick Paddle if
- SaaS companies that want a merchant of record to handle global sales tax, chargebacks and payouts for one fee
- Small teams with no finance staff — 5% + $0.50 per transaction with no monthly fee and no migration fee
- Subscription products selling above $10 where the flat fee is a small share of the price
Skip it if
- Your products are under $10: Paddle routes those to custom pricing
- You are cost-comparing against a plain gateway — 5% + $0.50 is higher than card processing alone because compliance is bundled
- You need invoicing-led sales at scale: that is also quoted separately
Our verdict
Acts as merchant of record, so global sales tax and VAT are its problem rather than yours.
Closest alternatives we track
Same category, ordered by verified starting price.
Frequently asked questions
- What are Paddle's fees?
- Paddle charges 5% + $0.50 per checkout transaction with no monthly fee. As merchant of record it bundles sales tax compliance, fraud and chargeback protection, payouts and currency conversion into that rate. Products priced under $10 and invoicing-based sales are quoted separately.
- Does Paddle have a free plan?
- No free plan is listed on the vendor's pricing page. Paddle is sold on usage-based pricing.
- Who is Paddle best for?
- SaaS Founders and Global Software Companies.
- What are the closest alternatives to Paddle?
- In the same category we track Lemon Squeezy and Stripe. Each has its own review page with verified pricing, and the comparison links above show them side by side.
- What are the main drawbacks of Paddle?
- The trade-offs we noted: Higher Commission: Charges a higher percentage per sale compared to pure processors.; Less Control: Since they are the merchant, you have less control over the checkout UI.; Delayed Payouts: Payouts are usually made monthly, not instantly like Stripe..
- When should you not use Paddle?
- Skip Paddle if: Your products are under $10: Paddle routes those to custom pricing; You are cost-comparing against a plain gateway — 5% + $0.50 is higher than card processing alone because compliance is bundled; You need invoicing-led sales at scale: that is also quoted separately.
What we checked
- Public APIOffers a documented API you can build against.Yes
- Mobile appHas a native app for iOS or Android, not just a mobile website.No
- Open source / self-hostableSource is open and the tool can be run on your own infrastructure.No
- SSO (SAML)Supports SAML single sign-on on at least one plan.Yes
“Not checked” means exactly that — we have not verified it, and we do not guess.
Evidence and freshness
Status: Vendor pricing page verifiedReviewed: 2026-09-08
- Paddle — Pricing ↗
Checked 2026-09-08 · Supports: 5% + $0.50 per checkout transaction, pay-as-you-go, no monthly subscription fee, no additional charge for chargebacks, payouts or currency conversion, products under $10 and invoicing: custom pricing; Enterprise custom
Limit: Vendor pricing page was reviewed by an editor on this date; this record is not a ToolCompare benchmark. Prices and limits change.
Compare Paddle with alternatives
More E-commerce tools: see the full E-commerce category