Stripe vs Paddle: Full Comparison
By Zach Schleien, Founder & Lead Reviewer · Scored with The Freeze-Risk Framework · Verified September 2026
Stripe vs Paddle
| Feature | Stripe | Paddle |
|---|---|---|
| Base Rate | 2.9% + $0.30 | 5% + $0.50 |
| Monthly Fee | $0 | $0 |
| Merchant of record | No | Yes |
| Global tax handled | No | Yes |
| Chargebacks handled | No | Yes |
| Developer APIs | Yes | Yes |
Our Verdict (Winner: Depends on tax exposure)
This is a cost-versus-compliance trade. Stripe gives you lower raw processing and more control. Paddle charges more but handles global sales tax, VAT, fraud and chargebacks as merchant of record. For global software sales, Paddle often makes more sense. For low-risk domestic SaaS, Stripe can be cheaper.
Stripe is best for: Domestic, low-risk SaaS that wants the lowest raw card rate and full control.
Paddle is best for: SaaS selling internationally that wants tax, fraud and chargebacks handled.
Raw rate vs merchant-of-record rate
Stripe's 2.9% + $0.30 is raw domestic US card processing. Paddle's 5% + $0.50 includes merchant-of-record services: global sales tax, VAT, fraud and chargebacks.
Who should choose Paddle?
Choose Paddle when tax exposure matters more than raw card cost. For high-ticket coaching or education sellers, compare Commas too.
Frequently Asked Questions
Is Paddle more expensive than Stripe?
Per transaction, yes. Paddle charges 5% + $0.50, while Stripe charges 2.9% + $0.30 for domestic US cards.
Should SaaS use Stripe or Paddle?
International SaaS often benefits from Paddle's merchant-of-record tax handling. Low-risk domestic SaaS may prefer Stripe.
Does Paddle handle sales tax?
Yes. Paddle handles global sales tax and VAT as merchant of record.
Sources
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