Paddle
A merchant of record for software and SaaS: Paddle sells to your customer on your behalf and handles checkout, subscriptions, sales tax and VAT, fraud and billing support for a single fee per transaction. It works for sellers in most countries, including many where Stripe is not available.
Tool
Web Development
Paddle
A few days to integrate and get approved
Intermediate
Free
What it is
Paddle is a payments platform that acts as the merchant of record for software businesses. Legally, the customer buys from Paddle, and Paddle pays you. That means Paddle, not you, is responsible for calculating, collecting and remitting sales tax and VAT around the world, and for handling fraud, chargebacks and billing questions.
Fees (as of 2026-09)
Paddle's pricing page lists 5% + 50¢ per checkout transaction, with no monthly fee. For products under $10, or when you need invoicing, Paddle asks you to contact sales for custom pricing. This is more than a raw payment processor charges, but it includes tax compliance you would otherwise pay for in time, accountants or extra software.
Who can use it
Paddle's help centre lists the countries it cannot work with, including Afghanistan, Belarus, Cuba, Iran, North Korea, Russia, Syria, Venezuela and Yemen. Most other countries are not on that list, which is why Paddle is a common choice for founders in places where Stripe does not onboard businesses directly. Paddle reviews every seller, and it sells software and digital products, not services or physical goods, so read its acceptable use policy before you build around it.
Getting paid
Paddle's help centre says payouts go by bank transfer, PayPal or Payoneer, once a month when your balance passes the threshold you set (minimum $100). For most countries Paddle does not charge a payout fee, though a SWIFT fee may apply for some. PayPal cannot receive money in every country, so check your options first.
When to choose it
- You sell software or SaaS to customers in many countries and do not want to register for VAT and sales tax yourself.
- Stripe is not available to a business in your country.
- You want subscriptions, trials and a hosted checkout without building billing logic.
When not to
Very cheap products lose a large share to the fixed fee, and Paddle may not approve early ideas with no product yet. For a one-off template sold to a small audience, Gumroad or Lemon Squeezy may be simpler.
Common questions
Is Paddle a bank? No. It is a reseller of your software that pays out to your bank or payout account.
Can I leave later? Yes, but migrating live subscriptions is work. Choose carefully before you have hundreds of subscribers.
Sources: paddle.com/pricing and the Paddle help centre, checked 2026-09.
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