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Stripe vs Paddle: Which Should You Choose?

Compare Stripe and Paddle on payments, merchant of record, and SaaS billing. Discover which solution best fits your product.

Stripe offers more control and lower fees at scale; Paddle wins on simplicity and compliance. For international SaaS without a tax team, Paddle often fits well.

Stripe

Payment platform; you are merchant of record, full control and flexibility.

Paddle

Merchant of record; Paddle invoices and handles VAT for you.

What are the key differences between Stripe and Paddle?

FeatureStripePaddle
MoRYou are MoR, own merchant accountPaddle is MoR, no own account needed
VAT / taxHandle yourself or Stripe TaxPaddle handles VAT, compliance offloaded
IntegrationAPI-first, many SDKsAPI, checkouts, less low-level
FeeLower % + processingHigher %, includes tax handling

What is the verdict on Stripe vs Paddle?

Stripe offers more control and lower fees at scale; Paddle wins on simplicity and compliance. For international SaaS without a tax team, Paddle often fits well.

Which option does MG Software recommend?

MG Software recommends Stripe for teams with own compliance; Paddle for fast internationalization and less ops.

Further reading

ComparisonsLemonSqueezy vs Paddle: Which Should You Choose?Stripe vs Lemon Squeezy: Payment Platform or Merchant of Record?Best Billing Software 2026Best Stripe Alternatives 2026

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Frequently asked questions

Paddle’s fee is higher, but VAT handling is included. With Stripe you pay separately for Stripe Tax.
No, Paddle acts as MoR. You sell to Paddle, who delivers to the end customer.
Yes, but it requires new onboarding and possibly subscription migration.

Is Paddle more expensive than Stripe?

Paddle’s fee is higher, but VAT handling is included. With Stripe you pay separately for Stripe Tax.

Do I need a merchant account with Paddle?

No, Paddle acts as MoR. You sell to Paddle, who delivers to the end customer.

Can I migrate from Paddle to Stripe?

Yes, but it requires new onboarding and possibly subscription migration.

Need help choosing?

We help you make the right choice for your project.

Schedule a free call

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