Stripe is cheaper on paper. Paddle is cheaper on paperwork. Here's the real 2026 cost once tax compliance is priced in.
Pick Stripe if you sell mostly in one country and can handle your own tax filing. Pick Paddle if you sell SaaS globally and want to never think about VAT again.
| Provider | Fee | Role |
|---|---|---|
| Stripe | 2.9% + $0.30 | Payment processor — you're the merchant of record |
| Paddle | 5% + $0.50 | Merchant of record — handles global tax |
Use the payment processor fees calculator to model your own transaction volume against both rates.
Stripe's 2.9%+$0.30 looks like the obvious winner until you sell to customers outside your home country. As the merchant of record, you're on the hook for calculating, collecting, and remitting sales tax and VAT in every jurisdiction where you have "nexus" — which for a SaaS product can mean dozens of US states plus the EU, UK, and beyond.
At roughly $50,000 in annual revenue, Stripe's processing fees run about $1,480 — but tax compliance tooling or an accountant to handle multi-jurisdiction filing commonly adds several thousand dollars more. Paddle's all-in cost at the same revenue is closer to $2,530, with zero additional tax overhead because Paddle is legally the seller.
You sell primarily to one country, already have tax handled (or a simple product not subject to VAT digital-goods rules), or need the most customizable checkout and billing infrastructure.
You're a solo founder or small team selling SaaS globally and want to launch without hiring a tax accountant or integrating a VAT compliance tool.
Stripe's headline rate is lower, but as merchant of record you carry tax compliance cost Stripe doesn't include. Once you add that, the gap narrows or reverses for global sellers.
The MoR is legally the seller on every transaction. Paddle collects and remits sales tax/VAT in 200+ jurisdictions and carries chargeback/compliance liability; with Stripe, you carry it.
Once you sell into multiple tax jurisdictions and would otherwise need a compliance tool or accountant — commonly around $30k-$50k in annual revenue for small teams.