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Paddle 🧾 Service

Merchant of record for SaaS, apps and digital products: 5% + 50c per transaction, global tax handled.

Payments & billing · Free plan, pay as you go · paddle.com

8.0editor score
Visit Paddle ↗
PricingFree plan, pay as you go
Who qualifiesSoftware, SaaS, apps, digital products and games businesses that pass Paddle's review.
Open inWorldwide
DeadlineRolling, apply any time
Terms last checked2026-10-11

About Paddle

What you get

Paddle acts as your merchant of record: it sells to your customers on your behalf, so it collects the right sales tax or VAT, tracks filing deadlines, files returns and pays the tax. You also get checkout, subscription billing and payment handling across what Paddle calls 300+ markets. Pay-as-you-go pricing is 5% plus 50 cents per checkout transaction, with no monthly, migration or hidden fees. Custom pricing is available for high volume, complex needs and products under $10.

Who qualifies

Paddle is built for software and digital businesses: SaaS, apps (including sales outside the app stores), app studios, digital products, software and games. Physical goods are outside its focus. It has a startups page but no published startup discount.

Good to know

  • The fee is higher than raw card processing because it includes tax liability, fraud and chargeback handling.
  • Payouts come from Paddle, not directly from card networks, so check the payout schedule for your cash flow.
  • Paddle's referral partner track rewards people who bring software companies with Paddle credit.
  • Because Paddle is the seller of record, your customers see Paddle on their card statement and receipts; set customer expectations in your checkout copy.
  • High-volume sellers can ask Paddle for custom pricing.

Verdict

A strong choice for a small SaaS team selling worldwide that does not want to register for VAT and sales tax in many places. If you sell physical goods or need the lowest fee, use Stripe.

merchant-of-record saas vat sales-tax subscriptions

How to apply

  1. Sign up on paddle.com and describe your product.
  2. Pass Paddle's business and product review.
  3. Set up products, prices and checkout.
  4. Connect your payout bank account.

Who it is for

Steps Paddle helps with

Pros

  • Global sales tax and VAT handled as merchant of record
  • No monthly fee
  • Built for SaaS subscriptions

Cons

  • 5% + 50c is more than plain card processing
  • Digital products only

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