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Updated May 2, 2026Payments Comparison
Lago vs Paddle Comparison
A detailed comparison of Lago and Paddle.
L
Lago
Open-source metering and billing API.
Primary Task
Usage-based Billing
Pricing
Open SourceKey Features
- Metering
- Invoicing
- Pricing Models
P
Paddle
The complete payments infrastructure for SaaS.
Primary Task
Merchant of Record
Pricing
PaidKey Features
- Tax Compliance
- Global Payments
- Upsell
At a Glance
| Feature | Lago | Paddle |
|---|---|---|
| Primary Task | Usage-based Billing | Merchant of Record |
| Pricing Model | Open Source | Paid |
| Founded | 2022 | 2012 |
| Global Support | N/A | N/A |
| Fraud Protection | N/A | N/A |
| Subscription Management | N/A | N/A |
| API Experience | N/A | N/A |
| Fees | N/A | N/A |
Pros & Cons
L
Lago
Strengths
- Best Stripe alternative
- Modern API
- Transparent pricing
Limitations
- Smaller ecosystem
- Fewer integrations
- Newer platform
P
Paddle
Strengths
- Easy subscriptions
- Hosted checkout
- Tax compliance
Limitations
- Expensive fees
- Limited customization
- UI dated
Final Decision
The Verdict
Both tools are excellent. Here's how to choose the right one for your project.
L
Choose Lago
Best for
- Strong Metering capabilities
- Open Source pricing model
- Usage-based Billing workflows
P
Choose Paddle
Best for
- Tax Compliance focused projects
- Paid approach
- Merchant of Record use cases
Frequently Asked Questions
What is the main difference between Lago and Paddle?
Lago is primarily a Usage-based Billing, while Paddle is focused on Merchant of Record. Open-source metering and billing API. The complete payments infrastructure for SaaS.
Is Lago open source?
Yes, Lago is open source.
Is Paddle open source?
No, Paddle is a commercial product with a paid model.
Which is better for Payments?
It depends on your specific needs. Lago is often chosen for its metering capabilities, while Paddle is popular for its tax compliance features.