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AI Price Scanner | Verified 2026-04-21
merchant-of-record-transaction-fee

How Much Does Paddle logo Paddle Cost in 2026?

3 plans Last verified 2026-04-21 Live pricing

8.8 /10

Paddle is a Merchant of Record — not a payment processor. That distinction matters: Paddle takes legal responsibility for selling your product to customers worldwide, which means they handle sales tax, VAT, GST, refunds, and customer support inquiries. You invoice Paddle, Paddle invoices your customers. 5% + $0.50 per transaction is higher than Stripe but includes tax compliance that would cost $5-20k/year with Stripe + accountant.

Prices in USD, verified from the United States. Regional pricing may vary.

Plans & Pricing

Standard (Pay-as-you-go)

$ 0 /mo
  • transactionFee 5% + $0.50 per Checkout transaction
  • scope Full Merchant of Record — tax compliance + subscription + fraud + churn included
Get Started

Custom Plan

Custom
  • scope Negotiated pricing for high-volume businesses — typical 3-4% at $1M+/year
Get Started

Under $10 Products

Custom
  • scope Custom pricing required — standard fee structure not available
Get Started

Features

merchant of record Paddle is MoR — handles all global tax
global tax compliance 50 US states + EU VAT + GST + more
subscription billing Included in transaction fee
payment methods Cards, PayPal, Apple Pay, Google Pay, wire transfers
currencies 30+ currencies with localized pricing
fraud protection Included
churn recovery Included
24 7 support 93% CSAT
migration services Included
billing support Paddle handles customer billing inquiries

Our Verdict

The MoR model fundamentally changes the math for global SaaS. On Stripe at 3.6% effective, a $99/mo subscription generates $3.56 fees vs Paddle's $5.45 (5% + $0.50). Paddle is $1.89 more per transaction — but Paddle handles sales tax in 50 US states, VAT in EU (23% countries with different rates), GST in Canada/Australia/New Zealand, and similar compliance globally. Doing that manually via Stripe Tax + accountant: $0.50/transaction Stripe Tax = $0.50 per $99 + $8k/year accountant spread across transactions = typically $1-2 per transaction. So total effective cost on Stripe for global SaaS: ~$4.50-5.50 per $99 transaction. Paddle at $5.45 is similar or slightly cheaper when you include compliance cost. For indie developers, the time cost matters more than percentage difference: hours of accountant meetings and tax filings disappear. Paddle handles them. You focus on product. Paddle's customer support (93% CSAT) also handles end-customer billing questions — 'I want a refund' emails go to Paddle, not you. That's meaningful time saved. Custom plans negotiate below 5% for high-volume merchants ($1M+/year). For products under $10 (microtransactions, low-price subscriptions), Paddle requires custom pricing — percentage-based model doesn't work at that scale. Where Paddle wins: global SaaS wanting zero tax compliance burden. Where it loses: US-only SaaS where Stripe's lower % math beats MoR convenience.

Pros

  • Merchant of Record — zero sales tax / VAT / GST compliance work for you
  • All-inclusive 5% + $0.50 covers processing, tax, fraud, churn recovery, support
  • Paddle handles end-customer billing support — refund requests don't hit your inbox
  • No monthly fees, migration fees, or hidden extras — transparent flat pricing
  • Custom plans negotiable below 5% for $1M+/year merchants

Cons

  • 5% + $0.50 is higher than Stripe's 2.9% + $0.30 before adding tax compliance
  • Products under $10 require custom pricing — no standard microtransaction support
  • You lose direct customer relationship — Paddle invoices customers, not you
  • Less flexible billing logic than Chargebee for enterprise use cases
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Frequently Asked Questions

How much does Paddle cost per month?
Paddle plans start at $0/mo. They offer 3 plans total.
Is Paddle worth the price?
With a score of 8.8/10 and plans from $0/mo, Paddle delivers strong value for the price.
What are cheaper alternatives to Paddle?
Paddle is already one of the most affordable saas billing & payments options starting at $0/mo. Compare all options on our [SaaS Billing & Payments pricing comparison](/pricing/saas-billing/) page.