Paddle vs Stripe
A detailed comparison to help you choose the right payment processing solution for your project.
Quick Verdict
Stripe has a feature edge based on documented capabilities, but the best choice depends on your constraints. Paddle is best for saas products selling globally, while Stripe excels at most saas products. See methodology for how we compare tools.
Paddle
Merchant of record for SaaS
Best for
Stripe
Feature edgeThe gold standard for payments
Best for
Decision Guide
Stripe gives you full control as the merchant, while Paddle acts as merchant of record and handles tax compliance. The right choice depends on your launch speed, tax complexity, and how much control you need.
Choose Paddle if you need
- Global SaaS selling in many regions
- Solo founders or small teams
- Fast launch with minimal compliance work
- Built-in tax and invoicing coverage
Choose Stripe if you need
- Teams that want full control over checkout and billing
- Marketplace or platform payment models
- Companies with finance and legal support
- Lower fees at high volume
Decision factors
- Tax and compliance ownership
- Checkout and billing customization
- Fee sensitivity at scale
- Marketplace or split payments
Pricing notes
- Stripe add-ons for Billing and Tax can increase total cost
- Paddle bundles tax compliance into the fee
- At low volume, Paddle often has lower total overhead
Migration notes
- Switching to Stripe requires tax registration and compliance setup
- Plan subscription migration and proration logic
- Keep customer IDs stable across systems
Feature Comparison
| Feature | Paddle | Stripe |
|---|---|---|
| Card Payments | Yes | Yes |
| Subscriptions | Yes | Yes |
| Invoicing | Yes | Yes |
| Marketplace/Connect | No | Yes |
| No-code Options | Yes | Yes Payment Links, Checkout |
| Mobile SDKs | Yes | Yes |
| Global Payments | Yes As MoR | Yes 135+ currencies |
Pricing Comparison
Paddle
Stripe
Paddle Pros & Cons
Pros
- +Handles all tax compliance
- +Merchant of record (you're not liable)
- +Simple global selling
- +Good for digital products
Cons
- -Higher fees than Stripe
- -Less control over billing
- -Not suitable for physical goods
Stripe Pros & Cons
Pros
- +Best-in-class documentation
- +Excellent developer experience
- +Comprehensive feature set
- +Strong ecosystem
Cons
- -Higher fees than some competitors
- -Account holds can be aggressive
- -Support can be slow
Paddle Verdict
Paddle is perfect if you want to sell globally without worrying about VAT, sales tax, or entity setup. Worth the higher fees for the peace of mind.
Stripe Verdict
Stripe is the default choice for a reason. Unmatched DX and features. Only consider alternatives if fees are critical or you have specific regional needs.
More options in Payment Processing
Looking for different tradeoffs? Explore alternatives to each tool.
Related guides
Frequently Asked Questions: Paddle vs Stripe
Is Paddle or Stripe better?
It depends on your use case. Paddle is best for saas products selling globally and solo founders avoiding tax complexity. Stripe is best for most saas products and marketplaces. Paddle is perfect if you want to sell globally without worrying about VAT, sales tax, or entity setup. Worth the higher fees for the peace of mind.
Is Paddle free?
No, Paddle does not have a free tier. Pricing starts at 5% + 50¢.
Is Stripe free?
No, Stripe does not have a free tier. Pricing starts at 2.9% + 30¢.
Can I migrate from Paddle to Stripe?
Yes, you can migrate from Paddle to Stripe, though the complexity depends on how deeply integrated your current solution is. Most developers recommend evaluating both tools in a test environment before committing to a migration.
Which is more popular, Paddle or Stripe?
Both Paddle and Stripe are popular choices in their category. The best choice depends on your specific requirements, team expertise, and budget rather than popularity alone.