Stripe vs Paddle
Stripe processes payments while you remain the seller of record, responsible for your own sales tax and VAT unless you add Stripe Tax or its merchant-of-record option, Stripe Managed Payments. Paddle is merchant of record by default, taking on tax collection, remittance and filing as part of its flat fee. Choose standard Stripe if you want the lowest processing cost and are equipped to handle tax yourself; choose Paddle, or Stripe Managed Payments, if you want someone else to own global tax compliance.
Facts checked on against the official sources listed at the end. Usage numbers update daily.
Best for
Businesses that want the lowest processing cost and can handle their own tax compliance
No free plan. Paid from 2.9% + 30 cents per successful US card transaction.
Best for
SaaS and digital product sellers who want tax, fraud and support handled for one flat fee
No free plan. Paid from 5% + 50 cents per transaction.
Stripe vs Paddle at a glance
| Compared on | Stripe | Paddle |
|---|---|---|
| Who is the seller of record | You are, by default; Stripe Managed Payments shifts this to Stripe for 3.5% on top of standard fees | Paddle, on every transaction, included in its flat fee |
| Tax collection and filing | Not included by default; Stripe Tax automates calculation and offers US filing, but you remain liable | Included: Paddle collects, remits and files sales tax and VAT on your behalf across the countries it serves |
| Standard fee | 2.9% + 30 cents per US card transaction, no monthly fee | A flat 5% + 50 cents per transaction at any volume, no monthly fee |
| Merchant-of-record fee | Stripe Managed Payments adds 3.5% on top of standard processing, automating tax in 80+ countries | Merchant-of-record handling is built into the standard 5% + 50 cents rate, no add-on needed |
| Fraud and disputes | Radar is included on standard Stripe; Managed Payments adds automated dispute handling | Fraud prevention and chargeback dispute management are included in the flat fee |
| Mobile billing partnership | No published equivalent partnership | Partnered with RevenueCat (2025) to extend merchant-of-record web payments to mobile app developers |
| Open source | No, Proprietary | No, Proprietary |
| Free plan | No: pay per successful transaction, no monthly fee on the standard plan | No monthly fee on the standard plan; you only pay per transaction |
| Paid plans from | 2.9% + 30 cents per successful US card transaction | 5% + 50 cents per transaction |
| Made by | Stripe, Inc. | Paddle |
| Launched | 2010 | Not listed |
What's the difference between Stripe and Paddle?
Stripe keeps you as the seller of record by default, Paddle doesn't
With standard Stripe, your business is legally the seller, so you register for and remit sales tax and VAT yourself in every jurisdiction you sell into, even with Stripe Tax automating the calculations. Paddle is merchant of record on every transaction, so it collects, remits and files that tax on your behalf as part of its fee.
Stripe now offers its own merchant-of-record option, at a higher combined cost
Stripe Managed Payments adds 3.5% on top of standard Stripe processing fees, automating tax compliance in more than 80 countries plus fraud and dispute handling. Combined with standard processing, that runs close to 6.4% + 30 cents per transaction, more than Paddle's flat 5% + 50 cents merchant-of-record rate.
Paddle's flat fee never changes with volume, Stripe's standard rate can be negotiated down
Paddle charges the same 5% + 50 cents at any volume unless you contact sales as a large or rapidly scaling business. Stripe's standard 2.9% + 30 cents rate is the starting point for high-volume businesses to negotiate custom pricing, something not offered on Paddle's core self-serve rate.
Paddle bundles subscription analytics, Stripe doesn't include that by default
Paddle's platform includes financial reporting and subscription analytics, built on its 2022 acquisition of ProfitWell. Standard Stripe provides transaction and billing data through its API and dashboard, without ProfitWell-style retention analytics built in.
Stripe vs Paddle pricing
Stripe's standard processing is cheaper per transaction, but tax compliance is your responsibility unless you add Stripe Tax or pay extra for Stripe Managed Payments. Paddle bundles merchant-of-record tax handling into one flat rate.
Stripe
Standard US card payments cost 2.9% + 30 cents per transaction, no monthly fee. Stripe Managed Payments, Stripe's own merchant-of-record option, adds 3.5% on top of standard processing fees, automating tax in more than 80 countries.
- Standard
- 2.9% + 30 cents per transaction
- Custom
- Contact sales
Paddle
A single flat fee of 5% + 50 cents per transaction at any volume, with merchant-of-record tax handling, fraud prevention and support all included, no separate add-on required.
- Standard
- 5% + 50 cents per transaction
- Enterprise
- Custom pricing
| Stripe | $350 a month on standard Stripe (2.9% + 30 cents) if you handle your own tax, or about $700 a month with Stripe Managed Payments' added 3.5% for merchant-of-record tax handling |
|---|---|
| Paddle | $600 a month on Paddle's flat 5% + 50 cents, with merchant-of-record tax handling included |
Prices in USD from the official pricing pages on 28 September 2026. They change often, so confirm on stripe.com and paddle.com before you commit.
Usage and activity
Weekly npm downloads: 27M for stripe and 256k for @paddle/paddle-js.
| Measure | Stripe | Paddle |
|---|---|---|
| GitHub stars | 4,523 | No public repository |
| npm downloads a week | 27M (stripe) | 256k (@paddle/paddle-js) |
| Latest release | v23.0.0, 6 days ago | None on GitHub |
| Releases in 90 days | 3 | 0 |
From the public GitHub and npm APIs, updated daily. Stars and downloads show developer interest, not product quality.
Should you choose Stripe or Paddle?
Choose Stripe if
- You want the lowest possible processing cost and can register for tax yourself, or use Stripe Tax to automate calculations
- You want the option to negotiate custom pricing at high volume
- You want deep control over checkout, billing logic and the rest of Stripe's API surface
- You're comfortable choosing Stripe Managed Payments later if you decide you want merchant-of-record coverage
Choose Paddle if
- You want tax collection, remittance and filing handled for you from day one
- You want one flat, predictable fee rather than combining a processor with separate tax and fraud tools
- You're a SaaS or digital product business selling into many countries
- You want subscription analytics built on Paddle's ProfitWell-derived reporting
Switching between Stripe and Paddle
Moving from Paddle to Stripe means taking on merchant-of-record responsibility yourself (or paying extra for Stripe Managed Payments), rebuilding checkout on Stripe's API, and registering for tax in every jurisdiction you sell into unless you add Stripe Tax. Moving from Stripe to Paddle means handing over the seller relationship entirely, rebuilding checkout on Paddle's hosted flow, and giving up direct control over some tax and dispute decisions in exchange for Paddle taking on that liability.
Stripe vs Paddle: common questions
Is Stripe cheaper than Paddle?
Standard Stripe processing, 2.9% + 30 cents, is cheaper per transaction than Paddle's flat 5% + 50 cents, but Stripe doesn't include merchant-of-record tax handling at that rate. Adding Stripe Managed Payments for that coverage costs about 6.4% + 30 cents combined, more than Paddle's all-in rate.
Is Stripe a merchant of record like Paddle?
Not by default. Standard Stripe leaves you as the seller of record. Stripe now offers Stripe Managed Payments, a separate merchant-of-record option for an added 3.5% on top of standard processing fees.
Does Paddle handle sales tax and VAT?
Yes, as merchant of record, Paddle collects, remits and files sales tax and VAT on your behalf across the countries it serves, included in its flat fee.
Can I use Stripe Tax instead of switching to Paddle?
Stripe Tax automates tax calculation and offers US filing from the dashboard, but you remain the seller of record and legally responsible for remittance, unlike Paddle or Stripe Managed Payments.
Does Paddle work with RevenueCat?
Yes, since 2025 Paddle and RevenueCat have partnered so mobile app developers can add merchant-of-record web payments through Paddle alongside RevenueCat.
Other options to consider
All payments tools
Stripe Billing
Stripe's subscription and recurring billing product, with usage-based billing via Metronome.
Polar
Merchant-of-record billing platform for developers, built for usage-based and AI-era pricing.
RevenueCat
Subscription infrastructure for mobile apps: a unified backend for App Store, Play Store and web billing.
Lago
Open source billing and usage-based pricing platform, deployable self-hosted or as a managed cloud service.
Sources
More sources for each tool are on the Stripe and Paddle pages.
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