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Payments infrastructure for SaaS (Merchant of Record)
Merchant-of-record payments and billing platform for software companies.
A merchant-of-record payments and billing platform for SaaS and digital products, handling global tax, compliance and subscriptions for a single per-transaction fee.
Paddle is a payments platform that acts as the merchant of record (MoR) for software and digital businesses. It sells your product on your behalf, so it takes on sales tax, VAT, payment processing, fraud and chargebacks worldwide.
Paddle's core idea is the merchant-of-record model: instead of just processing payments, Paddle becomes the legal seller of your product to customers everywhere. That means it collects and remits sales tax and VAT in 200+ countries, handles compliance, fraud and chargebacks, and provides subscription billing and dunning, so a small software team can sell globally without registering for tax in dozens of jurisdictions. Its 2023 acquisition of ProfitWell also brings subscription analytics.
Pricing is a single per-transaction fee with no monthly cost on the standard plan: 5% + $0.50 per transaction, which bundles payment processing, tax handling and MoR services. That's higher than a bare payment processor like Stripe (2.9% + $0.30), but it replaces the cost and effort of tax compliance, which can otherwise run into the thousands per year.
There's no monthly fee and no minimum, though the flat $0.50 is punishing on very low-priced items, and the 5% take rate has no ceiling, so high-volume businesses negotiate a Custom plan. Paddle is best for SaaS, digital products and app companies selling internationally.
Paddle is the legal seller, handling global tax, VAT and compliance for you.
5% + $0.50 per transaction covers processing, tax and MoR, no monthly fee.
Collects and remits sales tax and VAT across 200+ countries.
Recurring billing, dunning and ProfitWell analytics built in.
Best for
Company
Usage-based
Free plan available
Web, API
Paddle sells as the legal seller and owns tax liability.
Sales tax, VAT and GST collection and remittance.
Cards, PayPal, Apple Pay and local methods.
Recurring billing, proration and coupons.
Failed-payment recovery.
Fraud prevention and chargeback handling.
5% + $0.50 per transaction, no monthly fee. Bundles payment processing, global tax/VAT compliance as merchant of record, fraud protection and chargeback coverage.
Negotiated rates for high-volume businesses; contact sales. Products under ~$10 or invoice-based billing typically move to custom terms.
Pricing model: Usage-based
Pricing last verified September 2026
View current pricingStructured information about this product, for people and AI systems.
Paddle is a merchant-of-record payments and billing platform for SaaS and digital products, handling global tax, VAT, compliance, subscriptions and chargebacks for a single per-transaction fee (5% + $0.50, no monthly fee).
It covers 200+ countries and includes ProfitWell analytics. High-volume businesses negotiate a Custom plan. It's best for software companies selling internationally that want to offload tax compliance.
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