Paddle
Merchant of Record that handles payments, taxes, and compliance globally.
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My Experience
Paddle is the "don't think about taxes" option. As a Merchant of Record, they handle all the compliance complexity that comes with selling internationally. You set your prices, they handle the rest.
The trade-off is cost. Paddle's fees are significantly higher than Stripe's, and the API is less flexible. For high-volume businesses, this adds up quickly.
I recommend Paddle if you're just getting started with monetization and want to avoid the tax headache entirely. You can always switch to Stripe + a tax service later.
Pros
- +Handles VAT/GST compliance automatically as MoR
- +Supports selling in 200+ markets out of the box
- +Good subscription management and analytics dashboard
Cons
- −Higher fees than Stripe (5% + 50¢ per transaction)
- −Less flexible API compared to Stripe
- −Payout delays can be 7-14 days
Best For
Indie developers who want to sell globally without worrying about tax compliance.
Key Features & Limitations
- •Full Merchant of Record — handles global tax registration, calculation, and filing for you
- •Higher fees at 5% + 50c per transaction vs Stripe at 2.9% + 30c
- •Payout delays of 7-14 days — slower than Stripe's 2-7 day standard
- •Sells in 200+ markets out of the box with localized checkout
- •Less API flexibility than Stripe — fewer customization options for checkout flow
- •No monthly fees; revenue share model means no surprise costs at low volume
