Paddle — Payments, tax, and subscriptions — handled as your merchant of record
Subscription BillingPaddle is a merchant of record platform that handles payments, sales tax, invoicing, and subscription management globally. Unlike Stripe, Paddle is the seller of record — meaning they handle VAT, sales tax, and compliance in 200+ markets so you don't have to.
Best for
- +SaaS companies selling globally (especially to EU)
- +Founders who don't want to deal with sales tax
- +Small teams without a finance department
Not ideal for
- −Marketplace businesses (Paddle doesn't support multi-seller)
- −Companies needing full payment gateway control
Illustrative Case Study
Based on realistic usage patterns and typical results reported by users — not a verified customer story. Numbers are illustrative.
The Problem
A SaaS company selling to 30+ countries spent 12 hours/month on VAT compliance, registered for tax in 5 EU countries, and still worried about getting it wrong. Accounting costs were $2,000/mo.
The Solution
Switched billing to Paddle as merchant of record. Paddle became the legal seller — handling all sales tax, VAT, invoicing, and compliance globally.
The Result
Tax compliance work dropped from 12 hours to 0. Deregistered from 5 EU VAT numbers. Accounting costs dropped from $2,000 to $800/mo.
💡 ROI Estimate: Paddle takes ~5% per transaction vs 2.9% for Stripe = ~2.1% premium. On $50K/mo revenue that is $1,050/mo. Saves $1,200/mo in accounting + 12 hrs/mo. Net savings: $150/mo + time.
— Frequently asked questions about Paddle
How does Paddle compare to Chargebee?+
Is the 5% fee worth it?+
Does Paddle handle refunds?+
— Looking for more?
We review every tool with real case studies and ROI estimates. No vendor talking points.
— See also in Subscription Billing
💰 Your ROI Calculator
Personalize the estimate — what's your time worth?
Paddle saves ~12 hrs/mo on Tax compliance, invoicing, and payment administration.
* Estimate based on typical usage. Your actual results will vary.
Pricing
Quick facts
💡 Paddle takes ~5% per transaction vs 2.9% for Stripe = ~2.1% premium. On $50K/mo revenue that is $1,050/mo. Saves $1,200/mo in accounting + 12 hrs/mo. Net savings: $150/mo + time.