Stripe vs Paddle Fees

Stripe vs Paddle (Merchant of Record) — Paddle is ~2x more expensive but handles global VAT/sales tax and chargebacks. The "is the 2x worth it?" calculation.

At a glance

Stripe US
2.9% + 30¢
Paddle approx
5% + 50¢
Paddle handles
Global tax, chargebacks, dunning, MoR
Stripe Tax
+0.5% if enabled (you remain MoR)

Paddle is a Merchant of Record (MoR) — Paddle technically sells to your customers, handles all global VAT/GST/sales tax registration, files everything, and absorbs chargebacks. The catch: Paddle’s fee is roughly 5% + 50¢ vs Stripe’s 2.9% + 30¢. On a $100 transaction, that’s $5.50 vs $3.20 — Paddle is nearly 2x.

Frequently asked questions

Is Paddle worth the 2x premium?
For global SaaS with customers across 30+ countries, often yes — global VAT compliance is genuinely expensive. The threshold where Paddle pays off is typically a small business selling globally. Larger SaaS often switch to Stripe + a tax-compliance partner (like Stripe Tax + Quaderno or Avalara).
Can I switch from Paddle to Stripe later?
Yes, but it’s genuinely painful. Customer credentials live with Paddle (Paddle is the MoR), so migrating means re-collecting payment info from every active customer. Many SaaS founders pick Paddle for the first 1–2 years and migrate to Stripe at scale, eating a one-time conversion cost.

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