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Merchant of record for SaaS payments, tax, and billing
Paddle is a payments platform for software and SaaS companies that acts as your merchant of record (MoR) — meaning Paddle, not you, is the legal seller of your product. That single distinction is powerful: because Paddle is the seller, it takes on the burden of global payment processing, sales tax and VAT compliance, fraud, chargebacks, and billing across every market you sell in. Instead of stitching together a payment processor, a tax-compliance tool, a subscription-billing system, and an accountant for dozens of jurisdictions, SaaS companies use Paddle to sell globally with one integration and one partner handling the financial and compliance plumbing.
The platform bundles everything a software business needs to charge customers. It handles checkout and payment processing, subscription management and recurring billing, invoicing, and — critically — automatic calculation and remittance of sales tax, VAT, and GST worldwide, all within its fee. Paddle adds fraud protection, dunning and revenue recovery, analytics, and support handling, and (via Paddle Billing and ProfitWell/Paddle Retain) subscription metrics and churn tools. Its all-in-one, compliance-included model is aimed squarely at digital-product and SaaS sellers who want to avoid the operational and legal overhead of being the merchant of record themselves.
Paddle serves SaaS and digital-product companies that want a merchant of record to handle payments, tax, and billing globally. Its pricing is transaction-based with no monthly platform fee: a flat 5% + $0.50 per transaction that bundles payment processing, global tax compliance (MoR), subscription management, invoicing, fraud protection, analytics, and support — with volume-based custom pricing for larger businesses. It competes with Lemon Squeezy, Stripe, Chargebee, and Maxio, differentiating on being a merchant of record that removes global tax and compliance burden.
Pricing Model
Merchant of record: 5% + $0.50 per transaction
Starting Price
$0/mo
Free Options
Free version
No monthly fee. 5% + $0.50 per transaction, all-inclusive.
Custom pricing for larger businesses.
| Feature | Standard (Merchant of Record) Popular | Volume / Enterprise |
|---|---|---|
| 5% + $0.50 per transaction | — | |
| Global payment processing | — | |
| Tax and VAT compliance (MoR) | — | |
| Subscriptions and invoicing | — | |
| Fraud protection | — | |
| Volume-based rates | — | |
| Dedicated support | — | |
| Advanced controls | — | |
| Custom terms | — | |
| Higher-scale processing | — |
Other
CRM
Finance
Communication
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API Types
SDK Availability
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Developer Features
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Compliance Standards
SOC 2 Type II
EnterpriseISO 27001
EnterpriseGDPR Compliant
GlobalHIPAA
HealthcarePCI DSS
FinanceCCPA
PrivacyFedRAMP
GovernmentCSA STAR
CloudDeployment & Data
Data Residency Options
Verify with vendor for your specific region requirements.
Payments infrastructure and financial APIs for the internet
Subscription billing and revenue management for recurring businesses.
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