Stripe is faster to start. Paddle handles more of the hard parts. Here is the honest comparison for solo founders — without the marketing language.
Stripe is the default choice for most indie SaaS founders because it's what every tutorial uses. Paddle is the choice that more experienced founders make when they realise how much compliance work Stripe leaves in their hands. Here is the honest comparison.
Stripe processes payments. It does not handle tax compliance, fraud liability, or customer disputes on your behalf — you do. Its fees are lower (2.9% + $0.30 per transaction) and its documentation is excellent. It integrates with more tools than any other payment processor. For a US-focused solo founder with a tax advisor, it is the right choice.
The limitation: Stripe is a payment infrastructure tool, not a complete payments solution. VAT collection in Europe, GST in Australia, sales tax in US states — Stripe Tax can collect these, but you are still responsible for filing and remitting them. This is manageable with the right accountant. It is a significant burden without one.
Paddle acts as the merchant of record for your product. When a customer pays, they're legally buying from Paddle, who then pays you the net amount after their fee. Paddle handles: VAT collection and remittance in 60+ countries, chargeback management, fraud liability, and compliance with local digital services laws.
Paddle's fee is 5% + $0.50 per transaction. The extra ~2% buys you complete global tax compliance and chargeback protection. For a founder selling globally without a tax advisor, this is often a net positive financial decision when you factor in accountant costs and the time cost of tax compliance.
On a $79/month subscription: Stripe takes $2.60 per transaction (2.9% + $0.30). Paddle takes $4.45 per transaction (5% + $0.50). The difference is $1.85 per customer per month — $22.20 per customer per year.
If you have 50 customers, the annual difference is $1,110. If you have an accountant handling VAT compliance, that $1,110 saved on fees may cost you $2,000+ in accountant fees for international tax compliance. The economics often favour Paddle even at small scale when you factor in the compliance cost.
With Stripe: you collect VAT (if Stripe Tax is configured), but you file and remit it. In the EU, this means registering for the OSS scheme and filing quarterly returns. In the UK post-Brexit, a separate registration. In Australia, GST registration if you exceed AUD 75,000 in Australian revenue.
With Paddle: Paddle collects, files, and remits all applicable taxes globally. You receive your net payment. You file nothing. This is the single most significant practical difference for a solo founder without a dedicated finance function.
Choose Stripe if: your customers are primarily in the US, you have a tax advisor handling compliance, you need maximum integration flexibility, or you're starting out and want the fastest setup with the best documentation.
Choose Paddle if: you're selling globally from day one, you're based in the EU, you don't have a tax advisor, or you want to eliminate compliance work as a concern entirely.
Consider Lemon Squeezy if: you want Paddle's compliance coverage with a more indie-friendly interface and community. Same merchant-of-record model, slightly different product focus and community.
Tell Marcus where you're selling, who your customers are, and your current setup. You'll get a specific recommendation in session one.
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