A side-by-side breakdown of transaction fees, international rates, tax handling, and real total cost — so you can pick the right processor for your revenue stage.
| Feature | Stripe | Paddle |
|---|---|---|
| Base transaction fee | 2.9% + $0.30 | 5% + $0.50 (under $10k/mo) 2% + $0.50 (over $10k/mo) |
| International card fee | +1.5% | Included |
| Currency conversion fee | +1% | Included |
| VAT / GST handling | Not included (use Stripe Tax +0.5%) | Fully included — Paddle is a MoR |
| Sales tax filing | Your responsibility | Handled by Paddle |
| Dispute / chargeback fee | $15 per dispute | Paddle bears liability as MoR |
| Monthly fee | None | None |
| Best for | US-focused products, marketplaces, custom billing | SaaS with international customers, solo founders |
Let's compare the total cost of a $49 digital product sale from a German customer — a common scenario for indie founders selling SaaS or templates.
On a single $49 sale with an international customer, Paddle is slightly cheaper once you include Stripe's international and conversion fees. And you don't need to worry about German VAT registration at all.
The biggest reason founders switch from Stripe to Paddle isn't the transaction fee — it's tax compliance. Selling digital products to EU customers means you're legally required to collect and remit VAT in each country. This typically requires:
Paddle eliminates all of this as a Merchant of Record. At $500/month in revenue, the tax compliance savings alone often outweigh Paddle's higher transaction fee.
Enter your revenue, currency, and customer location to get a precise Stripe vs Paddle comparison — including international fees and tax savings.
Open Free Calculator →Is Stripe cheaper than Paddle?
For domestic US sales, yes — Stripe's 2.9% + $0.30 is lower than Paddle's 5% + $0.50. For international sales, the answer flips: once you add Stripe's international (1.5%) and conversion (1%) fees, plus the cost of tax compliance, Paddle often costs less in total.
Does Paddle handle taxes for you?
Yes. Paddle is a Merchant of Record (MoR). It collects, remits, and files VAT, GST, and US sales tax on your behalf in every country where you have customers. Stripe does not — you must use Stripe Tax (+0.5%) or manage tax compliance yourself.
Which is better for international SaaS?
Paddle is generally better for international SaaS because all-in fees are competitive once you account for Stripe's international surcharges and tax overhead. Paddle's MoR model also protects you legally from digital services tax obligations in 200+ countries.
Can I switch from Stripe to Paddle later?
Yes, but migrating active subscriptions requires coordination. You'll need to notify customers and re-collect payment details through Paddle's checkout. It's worth doing early if you're anticipating international growth.