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Comparison · Payments
Stripe vs Paddle: which is right for your SaaS?
Stripe is the default. Paddle handles VAT/sales tax globally for you. Picking between them depends on whether you want to handle global tax yourself.
Last updated May 21, 2026 · Editorial picks; no paid placement.
Who this is for
SaaS founders deciding between standard payment processor and merchant-of-record.
Best overall
Stripe for most
Best budget
Stripe
Best for solo
Paddle (for tax handling)
Best for SaaS
Stripe (US/UK base) or Paddle (global, tax-heavy markets)
The tools
Stripe
Free plan: No (transaction-based) · From 2.9% + $0.30 per transaction
Best for: Most SaaS, especially US-based
Pros
- · Best developer experience
- · Most integrations
- · Lowest fees for US-based businesses
Cons
- · YOU handle sales tax / VAT globally
- · Complex setup for non-US tax compliance
Paddle
Free plan: No · From 5% + $0.50 per transaction
Best for: Global SaaS that doesn't want to handle VAT
Pros
- · Merchant of record — handles all tax
- · One contract for global sales
- · Reduced compliance burden
Cons
- · Higher fees
- · Less flexible than Stripe
- · Smaller integration ecosystem
Frequently asked questions
- Which has lower total cost?
- Stripe is cheaper per transaction. Paddle is cheaper once you factor in the cost of handling international tax yourself — usually means an accountant + tax filing software for each jurisdiction.
- Can I switch later?
- Yes, but it's painful — customer cards re-tokenize, subscription history migrates manually. Pick deliberately and stick with it for at least 2 years.
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