Stripe vs Paddle
Stripe is payment processing platform with powerful APIs for online payments, subscriptions, and marketplaces, while Paddle is payment infrastructure that handles tax, compliance, and billing as your merchant of record. Stripe is built for developers wanting the best payment api, whereas Paddle targets saas companies wanting a merchant of record.
| Feature | Stripe | Paddle |
|---|---|---|
| Free tier available | ✓ | ✓ |
| Open source | — | — |
| Billing | — | ✓ |
| Checkout | — | ✓ |
| Connect | ✓ | — |
| Invoicing | ✓ | — |
| Merchant of Record | — | ✓ |
| Payments API | ✓ | — |
| Subscriptions | ✓ | — |
| Tax Handling | — | ✓ |
Pricing: Both tools offer free tiers, so you can test each before committing. Stripe's free plan: No monthly fees. Paddle's free plan: No upfront costs.
Feature gaps: Stripe offers Connect, Invoicing and Payments API that Paddle lacks. Paddle brings Billing, Checkout and Merchant of Record that Stripe does not have.
Team fit: Stripe is geared toward any size teams, while Paddle is aimed at small teams teams. Pick the one that matches where your team is today and where it is headed — migrating tools later is always painful.
Where each tool shines: Stripe's biggest strengths are: includes payments api as a core feature, purpose-built for payment processing workflows. includes subscriptions as a core feature, purpose-built for payment processing workflows. Paddle's biggest strengths are: includes merchant of record as a core feature, purpose-built for payment processing workflows. includes tax handling as a core feature, purpose-built for payment processing workflows.
Watch out for: With Stripe, users commonly note that free plan exists but key features are locked behind the paid upgrade. With Paddle, the main complaint is that free plan exists but key features are locked behind the paid upgrade.
choose Stripe if
- Your profile matches its sweet spot: developers wanting the best payment api
- You specifically need Connect and Invoicing
- You care about includes subscriptions as a core feature, purpose-built for payment processing workflows
- Your team size fits the any size profile Stripe is designed for
- The free tier works for you: no monthly fees
choose Paddle if
- You need a tool built for saas companies wanting a merchant of record
- You specifically need Billing and Checkout
- You care about includes tax handling as a core feature, purpose-built for payment processing workflows
- Your team size fits the small teams profile Paddle is designed for
- The free tier works for you: no upfront costs
frequently asked
What is the difference between Stripe and Paddle?
Stripe is payment processing platform with powerful APIs for online payments, subscriptions, and marketplaces, while Paddle is payment infrastructure that handles tax, compliance, and billing as your merchant of record. Stripe is built for developers wanting the best payment api, whereas Paddle targets saas companies wanting a merchant of record.
Should I use Stripe or Paddle?
Stripe is built for developers wanting the best payment api. Paddle is built for saas companies wanting a merchant of record. Pick the one that fits.
When should I choose Stripe over Paddle?
Choose Stripe if Your profile matches its sweet spot: developers wanting the best payment api; You specifically need Connect and Invoicing; You care about includes subscriptions as a core feature, purpose-built for payment processing workflows; Your team size fits the any size profile Stripe is designed for; The free tier works for you: no monthly fees.
When should I choose Paddle over Stripe?
Choose Paddle if You need a tool built for saas companies wanting a merchant of record; You specifically need Billing and Checkout; You care about includes tax handling as a core feature, purpose-built for payment processing workflows; Your team size fits the small teams profile Paddle is designed for; The free tier works for you: no upfront costs.
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