Paddle

Payments

A merchant of record platform for payments, subscriptions, billing, tax, and software sales.

Usage-based Payments Usage-based

About

What is Paddle?

Paddle is a merchant of record platform built for SaaS and software companies. It combines checkout, recurring billing, subscriptions, payments, invoicing, global tax management, and revenue tools in one service. Because Paddle acts as the merchant of record, it takes responsibility for collecting and remitting many applicable sales taxes and VAT obligations on behalf of sellers.

Pros & Cons

Pros

  • Merchant of record handles significant tax and compliance complexity
  • Designed specifically for SaaS and software businesses
  • Integrated subscription billing and checkout
  • Supports international payments and currencies
  • Reduces the number of separate billing tools required
  • Provides revenue and subscription management features

Cons

  • Higher transaction costs than basic payment processing
  • Less control over the payment stack than direct Stripe integration
  • Primarily suited to digital products and software
  • Account approval may require business verification

Use Cases

Selling SaaS subscriptions internationally Managing recurring software billing Handling VAT and sales tax for digital products Launching software products in multiple countries Replacing separate billing and tax services
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