Overview
Paddle is a merchant-of-record platform for software, apps and digital products. Rather than billing on the seller’s behalf, Paddle becomes the legal reseller to the buyer, which means it handles payments, sales tax and VAT, fraud, chargebacks and buyer support across what it describes as more than 300 markets[10].
Paddle Billing provides checkout, subscriptions, invoicing for B2B customers and retention tools, and the company also offers ProfitWell Metrics, a subscription-analytics product it describes as free[10]. Paddle states that it has more than 10,000 customers, has processed 190 million transactions and remitted US$130 million in sales taxes in the last year[10].
The standard price is 5% plus 50 cents per checkout transaction, with no monthly, migration or other fees, and custom pricing is available for high-volume or low-value transactions; sellers of products under US$10 are invited to request bespoke pricing[9]. There is no lock-in period[9]. The all-in rate is higher than a billing tool plus a processor, but it includes tax registration and filing that a seller would otherwise handle itself. Paddle is not suitable for physical goods.
Paddle features
- Merchant of record: tax, compliance and chargebacks
- Localised checkout and subscriptions
- B2B invoicing
- Free ProfitWell Metrics analytics
- Retention and failed-payment recovery tools
- In-app purchase alternative for mobile apps
Paddle pricing
Standard: 5% + 50¢ per checkout transaction; no monthly, migration or hidden fees. Custom: for high-volume businesses or high-volume, low-value transactions. No lock-in period.
Paddle strengths and limitations
Strengths
- Removes the need to register for sales tax and VAT abroad
- Single all-in rate with no monthly fee
- Free subscription analytics
- No contractual lock-in
Limitations
- Higher effective rate than billing plus a processor
- Only for digital products, not physical goods
- Seller is not the merchant of record on its own transactions
Appears in
Paddle alternatives and competitors
Alternatives to Paddle: companies ranked in the same lists.
Chargebee
Stripe Atlas
Zuora- Recurly
Maxio- Zoho Analytics
Recharge
Orb
Metronome
Lago
FastSpring- Billsby
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