Operations · Payments, billing and finance
Paddle
Merchant of record handling payments, billing and tax for software sellers
At a glance
Paddle is a merchant of record for software and digital product companies. It sells your product on your behalf, so it processes the payments, manages subscriptions and calculates, collects and files sales tax, VAT and GST in markets worldwide. You receive payouts net of fees without registering for tax in each country.
- Category
- Payments, billing and finance
- Best fit
- SME · Mid-market
- Pricing
- See pricing below
- In Adam’s stack
- No
Who Paddle is best for
SaaS, app and digital product businesses selling to customers in many countries that do not want to manage global tax registrations. Choose it over Stripe or Chargebee when tax and compliance overhead matters more than the lowest fee.
Key features
- Merchant of record for global sales
- Sales tax, VAT and GST collection and filing
- Subscription billing and checkout
- Multiple currencies and payment methods
- Buyer support for payment queries
- Migration support on custom plans
Why it’s worth it
It removes the need to register for and remit tax in dozens of jurisdictions, which is a major cost and risk for small software companies selling internationally.
Things to consider
- At 5% plus 50c per transaction it costs noticeably more than a standard payment processor.
- Paddle is the seller of record, so your customers see Paddle on receipts and you have less control over the checkout experience.
- It is built for software and digital products, so it does not suit physical goods or services businesses.
For Australian businesses
Paddle states it handles GST obligations for sales into Australia, so sellers using it do not need to register for GST on those sales.
Paddle pricing
Pricing as published by Paddle
Pay-as-you-go: 5% + 50c per checkout transaction, no monthly fees. Custom pricing for high-volume or low-value transactions (products under $10) by quote.
Source: paddle.com/pricing. Checked 8 October 2026. Prices change often, so confirm on the vendor’s site before you buy.
Alternatives to Paddle
Other tools listed under Payments, billing and finance. Tools from Adam’s stack are marked.
Stripe
In Adam’s stackOnline payments, invoicing and subscriptions
SMEMid-marketEnterpriseMulti-currency accounts, FX and company cards
SMEMid-marketEnterpriseCloud accounting loved by Australian small businesses
SMEMid-marketMYOB
AustralianAccounting and payroll built for Australia
SMEMid-marketWidely used cloud accounting
SMEMid-marketSubscription billing and revenue operations
SMEMid-marketEnterprisePayments in person and online
SMEMid-marketLow-cost international transfers and accounts
SMEMid-market
FAQ
Paddle: common questions
What is a merchant of record like Paddle?
A merchant of record legally resells your product, so it takes on payment processing, tax collection and filing, and payment compliance. You get paid out without registering for tax in each country.
How much does Paddle cost?
Paddle charges 5% plus 50c per transaction with no monthly fee. Custom pricing is available for high-volume businesses.
Paddle vs Stripe?
Stripe is a payment processor with lower fees, but you handle your own tax compliance. Paddle costs more but takes on global sales tax, VAT and GST as merchant of record.
Can’t find a tool that fits?
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