Global payments

Stripe vs Paddle vs Lemon Squeezy

Stripe, Paddle, Lemon Squeezy side by side: price, free tier, who each one fits and when to skip it.

Item	Stripe	Paddle	Lemon Squeezy
What it does	Payments API with checkout, subscriptions and billing, used by most SaaS companies worldwide.	Merchant of record for software: it sells your SaaS in its own name and handles sales tax and VAT in every country.	Merchant of record owned by Stripe for selling software, subscriptions and digital products, with sales tax and VAT handled for you.
Best for	A SaaS billing monthly plans by card in several currencies that wants upgrades, trials and retries handled by the best subscription API around.	Founder selling a SaaS worldwide who doesn't want to register for VAT or sales tax in every country they sell to.	Solo founder launching a small SaaS or template worldwide who wants a hosted checkout and license keys working in an afternoon.
Skip it if	You sell to consumers in many countries and don't want to register for VAT and sales tax yourself, since Stripe isn't the merchant of record.	You need the money every week, since Paddle pays out once a month and holds balances under the $100 minimum.	Your country isn't on the bank payout list, since every payout then goes through PayPal at 3% (capped at $30).
Setup	Needs a developer. Checkout and subscriptions in test mode in an afternoon; real payments after the account activation review.	Needs a developer. Checkout in a day or two; domain review is often automatic, but a manual one takes about 5 to 7 business days.	A little code. Checkout links work in an afternoon; add 2 to 3 business days for store approval.
Price	2.9% + 30¢ per US card; international cards cost more; Billing 0.7%	5% + 50¢ per transaction, taxes included	5% + 50¢ per transaction; some international payments cost extra
What it costs in practice	A SaaS with 200 subscribers at $29 on US cards: 200 × (2.9% of $29 + $0.30) ≈ $228, plus Billing at 0.7% of $5,800 ≈ $41. About $269 a month in fees, roughly 4.6% of revenue (estimate).	Estimate for a SaaS with 200 subscribers at $20/month (tax added on top for the customer): 200 × (5% of $20 + 50¢) = about $300/month in fees, with tax filing included. You keep roughly $3,700, paid once a month.	Estimate for a SaaS with 200 subscribers at $20/month, all outside the US: 200 × (7% of $20 + 50¢) = about $380/month. Two PayPal payouts hit the $30 cap, another $60. You keep roughly $3,550 of $4,000.
Free plan	No monthly fee; you pay per transaction.	No monthly fee; you pay per transaction.	No monthly fee; you pay per transaction.
Fee per sale	2.9% + 30¢ (US cards); more on international cards	5% + 50¢	5% + 50¢ (+1.5% outside the US)
Handles taxes (merchant of record)	No by default; Managed Payments is separate	Yes, files and remits taxes	Yes, files and remits taxes
Subscriptions	Yes, Stripe Billing (+0.7% of volume)	Yes, included in the fee	Yes, +0.5% per subscription payment
Open source	No: no	No: no	No: no
Before you build	Stripe isn't the merchant of record: registering for, collecting and filing sales tax or VAT in each country you sell to is on you. Stripe Tax only calculates and collects tax, for 0.5% of volume where you're registered. Filing the returns needs the separate Tax Complete plan. Your first payout usually lands 7 to 14 days after your first live payment, depending on your industry, country and risk level. Subscriptions run on Stripe Billing, which adds 0.7% of the billed volume on top of the card fee. Each card dispute costs $15 in the US, and countering it costs another $15 that you only get back if you win.	You can't go live until your website passes domain review. Most are approved automatically, but a manual review takes an estimated 5 to 7 business days and can stretch if they ask for more documents. The banned list includes pure consulting, marketplaces, exam and certification prep, medical advice, and donations or community access without real software. Check it before you build. You can't withdraw on demand. Paddle creates the payout on the 1st, sends it by the 15th, holds balances under $100, and some countries pay a $15 SWIFT fee. Local methods only show when the currency and country match: iDEAL, for example, appears only to customers in the Netherlands paying in euros. If you only list dollar prices, many buyers abroad see card and wallets only. The 50¢ per sale is flat, so cheap products hurt: on a $5 sale, Paddle keeps 15%. Products under $10 can ask for custom pricing.	The 5% + 50¢ is only the base. Sales outside the US add 1.5%, PayPal payments add 1.5% and subscription payments add 0.5%, so a renewal from Europe costs 7% + 50¢. Bank payouts only go to countries on the supported list; everywhere else you're paid through PayPal, which costs 3% per payout outside the US (capped at $30). If neither option covers your country, you can't use it. Stores selling services are usually not approved, and selling a banned product can get the store put in review or suspended without notice. Stripe is now steering the company toward Stripe Managed Payments, and Lemon Squeezy says its goal is an easy way for users to migrate there. Expect a possible move later.
Price checked	Checked on Oct 28, 2026 · official pricing	Checked on Oct 28, 2026 · official pricing	Checked on Oct 28, 2026 · official pricing

Prices are read from each official pricing page on the date shown and can change. Always confirm before signing up.

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Stripe vs Paddle vs Lemon Squeezy

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