Paddle

Merchant of Record that handles payments, tax, and compliance globally

Overview

Paddle's Merchant of Record model is its defining feature. Instead of just processing payments, Paddle becomes the legal seller of your product. This means Paddle handles sales tax, VAT, and compliance across every jurisdiction - a burden that grows exponentially complex as you sell globally.

For SaaS companies, this removes an entire category of operational headaches. You do not need to register for tax in every state or country, calculate correct rates, file returns, or deal with tax audits on international sales. Paddle handles all of it.

The trade-off is slightly higher transaction fees compared to Stripe. But for many SaaS companies, the cost of Paddle is less than the alternative: hiring tax accountants, subscribing to tax calculation services, and dedicating engineering time to compliance infrastructure.

Key Features

Merchant of Record

Paddle handles sales tax, VAT, and compliance worldwide

Subscription Billing

Flexible recurring billing with dunning and retention tools

Checkout

Localized checkout experience with optimal payment methods per region

Revenue Delivery

Net payouts with detailed revenue reporting

ProfitWell Metrics

Built-in subscription analytics and benchmarking

Retain

AI-powered cancellation flows to reduce churn

Why We Recommend Paddle

For SaaS companies selling internationally, Paddle's Merchant of Record model eliminates tax compliance complexity. The higher fees are often cheaper than the alternative of managing global tax obligations yourself.

Quick Info

Need help setting up Paddle?

Our team can integrate Paddle into your workflow and automate the repetitive parts.

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