Paddle vs PayPal
A detailed comparison to help you choose the right payment processing solution for your project.
Quick Verdict
PayPal 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 PayPal excels at b2c products. See methodology for how we compare tools.
Paddle
Merchant of record for SaaS
Best for
PayPal
Feature edgeThe household name in payments
Best for
Feature Comparison
| Feature | Paddle | PayPal |
|---|---|---|
| Card Payments | Yes | Yes |
| Subscriptions | Yes | Yes |
| Invoicing | Yes | Yes |
| Marketplace/Connect | No | Yes |
| No-code Options | Yes | Yes |
| Mobile SDKs | Yes | Yes |
| Global Payments | Yes As MoR | Yes |
Pricing Comparison
Paddle
PayPal
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
PayPal Pros & Cons
Pros
- +High consumer trust
- +PayPal wallet users
- +Good for B2C
- +Venmo integration
Cons
- -Dated developer experience
- -Complex account management
- -Aggressive holds
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.
PayPal Verdict
PayPal makes sense when your customers expect it. The DX lags behind Stripe, but the consumer trust is real.
More options in Payment Processing
Looking for different tradeoffs? Explore alternatives to each tool.
Related guides
Frequently Asked Questions: Paddle vs PayPal
Is Paddle or PayPal better?
It depends on your use case. Paddle is best for saas products selling globally and solo founders avoiding tax complexity. PayPal is best for b2c products and audiences expecting paypal. 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 PayPal free?
No, PayPal does not have a free tier. Pricing starts at 2.99% + 49¢.
Can I migrate from Paddle to PayPal?
Yes, you can migrate from Paddle to PayPal, 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 PayPal?
Both Paddle and PayPal are popular choices in their category. The best choice depends on your specific requirements, team expertise, and budget rather than popularity alone.