Paddle
Merchant of record for SaaS
Paddle operates as a merchant of record (MoR), meaning they legally sell your software on your behalf and handle all the complexity of global tax compliance, VAT, and sales tax. This is a significant advantage for SaaS companies selling internationally - instead of registering for taxes in dozens of jurisdictions, Paddle handles it all. The tradeoff is higher fees (5-10% depending on volume) and less control over the checkout experience. Paddle's Billing platform supports subscriptions, one-time purchases, and complex pricing models. They also handle chargebacks, fraud prevention, and provide consolidated payouts. For teams without dedicated finance or legal resources, Paddle dramatically reduces the operational overhead of running a global software business.
Our 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.
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
Build vs Buy with AI
Buy This ToolPaddle's value is being a merchant of record - they legally sell your product and handle global tax compliance. You cannot build this; it requires legal entities, tax registrations, and banking in multiple countries.
Key Considerations
- •MoR requires legal entities in multiple jurisdictions
- •VAT/GST compliance changes constantly across 100+ countries
- •Handling chargebacks and disputes requires dedicated team
- •The 5% fee often saves money vs. hiring tax accountants
Features
Best For
Pricing
- - MoR
- - Tax handling
- - Checkout
- - Volume discounts
- - Dedicated support
Compare Paddle
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