Paddle is a merchant of record for software and SaaS. It sells your product on your behalf, so it collects and pays sales tax and VAT around the world and handles fraud, chargebacks and buyer support. It's for founders selling software globally who don't want to register for tax in dozens of countries. There's no special deal right now: Paddle's pricing page shows only its standard fee of 5% + 50¢ per checkout transaction, with no free plan, trial, discount or credit. That fee is all-inclusive, with no monthly, migration or hidden fees, and high-volume businesses can ask for custom pricing.
What it can do for you
Add Paddle's checkout to your app, set up subscription plans, and sell worldwide without becoming a tax expert. Paddle files the tax, handles refunds and disputes, and answers buyers' payment questions. For a solo SaaS founder, that removes a big chunk of admin and risk.
What people like
Founders choose it so they don't have to think about global tax, and the all-inclusive fee is simple to understand.
The honest downsides
- Approval is slow and strict. One Reddit founder took six weeks to get approved; others, and a DEV post, describe repeated rejections for new businesses with no sales history or vague product descriptions.
- Accounts can still be closed. Some founders report accounts suspended after approval, with payouts held.
- It costs more per sale. 5% + 50¢ is more than standard card fees; you're paying for the tax and compliance work.
- Software only. It's built for software and SaaS, not physical goods or services.
Skip it if
- you sell mainly to customers in your own country
- you need to go live today
- you sell physical products or services
Alternatives
There's nothing we list that's clearly better as a merchant of record for SaaS.
- Stripe is cheaper and faster to set up if you handle tax yourself, and its Managed Payments option adds merchant-of-record cover for an extra fee.
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