Paddle · Merchants of record
Paddle review
Paddle is a merchant of record for SaaS and software companies: it sells to your customers on your behalf and handles payments, subscriptions and worldwide sales tax and VAT. It costs more per transaction than a processor like Stripe, at around 5% + 50¢, but for SaaS companies selling into many countries, taking tax compliance off your plate often justifies the gap.
Who Paddle is best for
SaaS companies selling into many countries and software businesses without a tax team.
Businesses selling mainly in one country.
Paddle is a merchant of record for SaaS and software companies: it sells to your customers on your behalf and handles payments, subscriptions and worldwide sales tax and VAT. It costs more per transaction than a processor like Stripe, at around 5% + 50¢, but for SaaS companies selling into many countries, taking tax compliance off your plate often justifies the gap.
Fees, features and eligibility
| Recurring billing | Subscription billing built in |
|---|---|
| Card rate | Around 5% + 50¢ per transaction |
| International cards and FX | Global payments and currencies handled |
| Monthly fee | No monthly fee |
| Type | Merchant of record |
| Coverage | Global |
| Best fit | SaaS and software companies |
Source: Paddle published product information.
What stands out
Pros
- Handles global sales tax and VAT
- Subscription billing built in
Cons
- Higher per-transaction cost than processors
Paddle: common questions
What is a merchant of record?
A company that sells to your customers on your behalf and takes responsibility for payments and sales tax.
How much does Paddle cost?
Around 5% + 50¢ per transaction.
Is Paddle cheaper than Stripe?
No, per transaction it costs more, but it handles global sales tax and VAT for you.
Used Paddle? Help other businesses choose.
