Paddle: sell your software worldwide without handling VAT
The Merchant of Record platform that collects payments, invoices and handles worldwide VAT for you, for software, SaaS and apps
What is Paddle?
Paddle is a payment and billing platform built for software, SaaS and mobile apps. What sets it apart is its Merchant of Record status: Paddle is the official seller to your customer, collects the payment, then collects and remits VAT and sales taxes in 300+ markets. You receive the proceeds of your sales without registering for VAT in each country. The platform also bundles ProfitWell Metrics (subscription analytics) and Retain (failed payment recovery and churn reduction).
Who is Paddle for?
Independent developers, SaaS founders and small teams that sell subscription software to customers in several countries and do not want to handle the tax side of digital sales. If you are launching an online tool, a paid plugin or an app with subscriptions, this is its turf. On the other hand, if you sell a single ebook or template, a simpler platform like Lemon Squeezy will do the job; and if you mostly sell in one country with large volumes, Stripe will cost you less per transaction.
What you can do with Paddle
- Get paid worldwide: a localized checkout (language, currency, payment methods) that you embed on your website or in your app.
- Manage subscriptions: recurring billing, trials, plan changes and dunning, all in one dashboard.
- Forget about VAT: Paddle collects the right tax rate, tracks filing deadlines and submits the returns for you.
- Protect yourself from fraud: fraudster screening, chargeback handling and buyer support are handled by Paddle.
- Track your metrics: ProfitWell Metrics gives you real-time MRR, retention and growth.
- Recover failed payments: Retain automatically retries declined cards and reduces cancellations.
Paddle pricing in 2026
No monthly subscription: the Pay-as-you-go plan is $0 a month and Paddle takes 5% + $0.50 per transaction. This all-inclusive fee covers payment, checkout, subscriptions, VAT and compliance, fraud protection and buyer support, with no migration fees or hidden extras. Custom pricing exists for high volumes and more complex needs, with dedicated support. If you sell products under $10, you need to ask for a specific quote. No lock-in period: your data is yours and can be migrated. Prices checked on paddle.com in November 2026.
Why we recommend Paddle
At FreelanceKit, we picked Paddle because it solves in one go the three things that keep a solo founder selling software internationally up at night: VAT, recurring billing and failed payments. For a SaaS launched alone, having a single provider that handles all of it is well worth the fee, especially while revenue is still modest.
The weak point to know: 5% + $0.50 per transaction is clearly more than a classic processor. As your volumes grow, the gap adds up to hundreds of euros a month. Paddle is also limited to digital products (software, SaaS, apps), the platform and support are in English, and selling a simple ebook is less direct than with a checkout link.
Paddle or another solution?
To compare Paddle with Lemon Squeezy, Stripe or Gumroad, see our page on alternatives to Paddle.
Strengths and weaknesses
Strengths
- Merchant of Record: VAT, sales taxes and regulatory compliance handled for you in 300+ markets
- One all-inclusive fee: 5% + $0.50 per transaction, no monthly fees and no migration fees
- Subscriptions, localized checkout, fraud protection and buyer support included
- ProfitWell Metrics and Retain included: subscription metrics and failed payment recovery
Weaknesses
- 5% + $0.50 per transaction: more expensive than a classic processor like Stripe as soon as volume grows
- Built for software, SaaS and apps: no physical products, and custom quote for products under $10
- Platform and support in English, less direct than a simple checkout link to sell an ebook or a template
Frequently asked questions about Paddle
Paddle is a payment and billing platform for software, SaaS and mobile apps. It acts as Merchant of Record: it is the official seller to your customer, collects the payment, then collects and remits VAT and sales taxes in 300+ markets. It also includes ProfitWell Metrics (subscription analytics) and Retain (failed payment recovery).
Paddle charges no monthly subscription: you pay 5% + $0.50 per transaction, an all-inclusive fee that covers payment, checkout, subscriptions, VAT, fraud prevention and buyer support. Custom pricing exists for high volumes, and you need to ask for a quote if you sell products under $10. Prices checked on paddle.com in November 2026.
The Merchant of Record is the legal seller of the transaction. With Paddle, Paddle appears as the seller on your customer's receipt, collects VAT at the right rate, tracks filing deadlines and submits sales tax returns for you. You receive the proceeds of your sales without registering for VAT in each country.
Stripe is a payment processor: it collects the money, but you remain the seller and you handle VAT, invoicing and compliance. Paddle takes all of that on as Merchant of Record, in exchange for a higher fee. If you sell internationally without an accounting team, Paddle saves time; if you mostly sell in one country with large volumes, Stripe costs less.
Both are Merchants of Record with the same base fee. Lemon Squeezy, owned by Stripe, is simpler for selling templates, ebooks or courses with a checkout link. Paddle targets SaaS and apps with subscriptions, and adds metrics and churn reduction tools.
No. Paddle announces no lock-in period: your data is 100% yours and can be migrated to another provider if you change your payment infrastructure.
Alternatives to Paddle
What we would use instead, in the same category.
Compare all the alternatives to Paddle
See our full comparison of the 3 alternatives to Paddle in 2026: prices, features and strengths, in detail.
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