An in-depth comparison of Stripe as compared to. Paddle vs.

For help in deciding between Stripe vs. Paddle vs. , this comparison guide:

• What aspects that each one provides a solution to (e.g., payment processing, gathering and remitting taxes and managing subscriptions) and which additional programs you'll require to integrate into your technology stack.
• Which industries and businesses serve each other.

In the next section, we present a detailed comparison of key options like checkout and the ability to report. In addition, we provide user reviews as well as case studies for each solution.

In a nutshell, Stripe primarily deals with payment processing, whereas and Paddle deal with the processing of payments, managing subscriptions as well as tax collection and payment as well as fraud prevention, and many more with no the requirement for any additional software.

 Table of Contents

•   What areas of the payment lifecycle are you able to handle and which other programs will you need for a complete payment solution?
•   What kinds of companies and which industries can use the various platforms?
•   Features and functionality comparisons
•     Pay Processing
•     Calculating and remitting GST, sales tax, and GST
•     Checkout
•     Subscription Management
•     Analytics and Reporting
•   Pricing
•   Review by Customer

Notice: Information in this article is true as of the time of writing however, it is subject to change.

Which aspects that are part of the payment cycle will you be able to control and what additional software are you going to require for a comprehensive payment solution?

Stripe: Payment Processing

Stripe is most well-known for its payment processing capabilities, so they assist you in collecting payment details and get payments accepted. They also provide basic services that allow you to manage subscriptions including fraud detection, invoicing and much more.

These additional features can satisfy the needs of some early-stage start-ups, however, many companies require greater options. As time goes on, you'll require more software that can handle complex recurring requirements for billing, to accept more payment methods around the world, or create your own checkout system. It's a good thing that most developers are able to incorporate Stripe with other programs (however, you have to purchase each application individually).

Many companies that utilize Stripe require additional employees in charge of taxation of sales (and VAT) and compliance with regulatory requirements. Even though Stripe gathers sales tax and VAT for you, you'll be responsible to pay it. If you make a mistake in remitting these taxes with the incorrect amount, or at the wrong moment, or with the incorrect method it could result in financial loss and penalties. (More on this later. )

In addition, you'll have to be accountable for staying up to date and following local laws and regulations where you have customers. This is a huge undertaking for any business, which is why most companies dedicate an entire department to the task.

The Whole Payment Lifecycle

• Many payment processors (which enhances the rate of authorization and makes it easier to transfer money internationally).
• Flexible subscription management and automated billing tools.
• B2B digital invoicing.
• Advanced fraud detection.
• Flexible check out (down to the last pixel).
• Detailed reports and analytics.
• And many more.

You'll have the ability to handle all aspects of the payments lifecycle through your account without the need for additional headcount or software.

Paddle: Most of the Payment Lifecycle

Paddle has solutions for payment processing as well as subscription management as well as fraud detection. It has more features than Stripe's offerings. But, some of the features are less robust than  Stripe's capabilities. For instance,'s checkout is more customizable in comparison to Paddle's checkout choices (more about this in the future).

If Paddle isn't able to provide the capabilities it needs, you could need to add additional software or move to a different software or.

As with Paddle , Paddle is an MoR.

What kinds of businesses and what industries are able to use the Platforms?

The Stripe App: Nearly Any Business

Stripe can be used by nearly any type of business in nearly any industry. But, SaaS companies will inevitably run into a few struggles while using Stripe.

Like we said earlier, companies using Stripe have the sole responsibility of the payment of VAT and sales tax. There was a time that SaaS firms didn't have to pay sales tax or VAT; but many states and countries are creating (and rigorously enforce) new laws that require SaaS firms to pay VAT or sales tax.

Here are two examples:

• On January 1, 2015 The European Union began requiring software sellers to collect and remit VAT based on the location of the purchaser and not on the location of the business or its employees.
• In the year 2018 it was the year that in 2018, the United States Supreme Court has ruled that states may charge sales tax on purchases made by sellers outside of the state (including sellers on the internet) however the seller does not have any physical presence within the state that taxes.

Keeping track of and adhering to constantly shifting tax law is a difficult challenge. This is why SaaS firms (and those selling digital product) are better off choosing an option that can handle remitting sales tax and VAT on your behalf.

: B2C and B2B SaaS or Digital Goods Companies

For more than 20 years the company has provided services to B2B and B2C companies that sell SaaS and digital products and downloadable software:

Paddle B2C SaaS

Paddle is serving SaaS companies for about ten years. Paddle's platform works better for B2C businesses, but they are working on adding new features for B2B firms, for example, automatized billing.

If adding B2B services are in the future, these features may be established by the time you need they. But, if you're already selling products that are B2B-related then you might want to consider another option with fully functioning B2B features ('s Digital Invoicing tool that is B2B-specific has been live for several years).

We will then compare Stripe with. vs. Paddle, according to certain features.

Functionality and Feature Comparisons

Payment Processing (Payment methods, currencies, and More)

Stripe

To start processing payments with Stripe You must create each account with the payment method and currency you wish to provide for that specific location. Once set to go live, Stripe will automatically convert product prices and display the appropriate currencies and payment options during the time of checkout.

Stripe supports 135+ currencies.

You'll be able accept payments from large credit card networks (including MasterCard and Visa), bank transfers, vouchers as well as popular wallets such as Apple Pay and Google Pay. They don't, however, accept PayPal.

Stripe can also support in-person transactions using the Stripe Terminal and mobile SDKs.

This makes it easier makes it easy for SaaS as well as e-commerce businesses to accept payment in a variety of currencies and preferred payment options around the globe. Instead of setting up each payment method separately, merchants can turn on localized payments and accept global payment right away.

While Stripe automatically converts prices in local currencies for you, provides more flexibility:

• It is possible to let the conversions for you, oryou can set a fixed price per product in every one of the currencies.
• The user can choose the appropriate currency for the user based on their location, you can choose one specific currency per location, or you could let users choose the currency they prefer. supports 23+ currencies.

 With , customers can make payments using:

• Credit cards, including Visa, MasterCard, American Express, Discover, JCB and UnionPay.
• ACH.
• SEPA Direct Debit.
• Wire transfers.
• Wallets including PayPal, Apple Pay, Amazon, Alipay, and many more.

Payments have a higher success rate when the gateway is located in the same place as the purchaser. automatically routes online payments through the gateway with the highest rate of authorization for the type of payment and its location.

Additionally, having multiple payment gateways solves most failed payment issues that are due to network errors. When a gateway for payment has a problem with its technology, automatically retries the payment using a different gateway -- without your team having to move their fingers.

Bonus: Sift Partners as Sift

takes the lead on the risk and fraud aspects (including the chargeback process). We partner with Sift, a global pioneer in risk analysis and fraud prevention, in order to make your transactions safe. Sift uses machine learning and AI to:

• Improve the accuracy of fraud-related decisions.
• Improve approval rates and result in less false positives.
• Make sure that bad actors are stopped before transactions are completed.

also blocks transactions from countries and jurisdictions where companies cannot currently engage in business.

Paddle

Paddle also utilizes multiple payment options and allows companies to accept global payments with minimal configuration.

Paddle works with more than 20 different currencies, most popular credit cards (including MasterCard, Union Pay, and more) wire transfers as well as money-saving wallets (including Apple Pay, Google Pay, PayPal, and Alipay) (although many of these are still in beta testing.

Making Sales Tax Calculation and Payment (VAT, GST) and Sales Tax

Stripe

Stripe acquired TaxJar to help you calculate sales tax, VAT, and GST. However, they only provide directions for activating tax-related features and giving tax codes. The user is responsible for all decision-making and the implications that result from using these tools (e.g., knowing what your product's classification is according to tax law, and knowing if and where you are nexus-related, you must to be registered, collect, file, and submit taxes on consumption). If you're unsure about ways to reduce tax burdens and qualify for tax reductions, rates, or any other tax-related question You'll probably be advised to speak with your tax professional or read through the help article.

 If you accidentally created it incorrectly and collect the wrong amount (or the wrong type) or tax amount, you'll be held accountable.

In addition, the process of submitting sales tax is usually more complex than filling out a simple spreadsheet and writing a check. More and more nations are imposing more obligations to stay compliant. Examples:

• Some countries like Colombia, Japan, Mexico, Serbia, and others require local representation, meaning you have employ someone who has physically present in the nation to take care of your tax obligations. It can range from $5k to $15k each year.
• Countries such as India, Indonesia, Japan as well as others need your bank account "pre-funded" meaning you must determine how much tax you will owe and keep that money in your account until you are ready to make a tax filing (up to three months in advance).
• Some countries like Serbia, United Kingdom, Taiwan, and others require electronic invoicing (it also applies to non-resident companies, too). It typically cost companies between $2k and $5k annually. Notice: E-invoicing mandates are growing at a rapid rate -- with the EU outlining universal electronic invoicing requirements by 2028..
• Countries like Taiwan, Indonesia, Nigeria, Vietnam, and others require you to file taxes on your income in addition to indirect tax (this can be as high as $5-$10k per year).

Additionally, wiring international tax payments is not easy or free. The corresponding and receiving banks are both charged fees. There's also the additional risk involved in foreign transactions.

Thus, even though Stripe has taken a major step to help you collect sales tax by acquiring TaxJar but they're a far way from providing an end-to-end solution for tax collection and international tax.

handles the entire process of gathering and remitting sales tax, VAT, and GST to you .

Over 20 years of expertise in filing more than 1,200 tax returns every year Our team makes sure the right amount (and type) of indirect tax is being collected when you pay your bill -- we can even manage tax-free transactions in the U.S. and 0% reverse charge when permitted internationally.

Files and collects tax across 52 countries, 13 provinces as well as all of the U.S. states that collect sales tax (five states do not collect taxes on sales).

Then, our team remits those taxes for you and ensures all the necessary steps are taken for you to remain compliant. If a state or country asks you to comply with tax laws the team from our firm will guide you on the best way to handle it to them, even going as far as providing responses using copy-and-paste.

We build and maintain relationships with tax professionals around the globe, to ensure that we're aware of tax the latest laws and regulations that alter.

Bonus: Tax Codes Customized

Tools such as TaxJar, Avalara, and other tax software provide you with tax codes for most products and services. In reality, many companies eventually want to offer a product or service that isn't in the definition of one of the tax codes provided (e.g., having an event in person with online attendees and speakers). By using a tool like TaxJar, you'll be on your own to calculate and calculate the appropriate amount as well as the type of indirect tax because they won't have the appropriate tax code for your unique situation.

It's not a problem for sellers as we've recently rolled out a option that lets us create unique tax codes for products tailored to the specific use caseand in just moments. Tell us the details of the product or service you offer and we'll create the tax code for you.

Paddle

Similar to Paddle , Paddle takes the lead in collecting and remitting the sales tax, VAT and GST on behalf of the benefit of you. Contrary to the other , Paddle doesn't support tax exempted instances in the U.S.

Check-out

Stripe

Stripe Checkout can be described as a prebuilt payment site that can be used across any device. There are several possibilities for customizing (e.g., font, block shapes, colors and more.) however, it's very limited. Stripe automatically translates Checkout to the appropriate language (35plus options) based on the buyer's location.

allows you to customize each aspect of your checkout experience, from custom fields to branded colours. There's also the option to choose whether you want to grant your developer total control over checkout or let handle it all for you (or somewhere there in-between).

This is a brief overview of the checkout options:

• Three variations: You have the option to embed checkout directly onto your website, use a popup checkout, or direct your clients to a Web Storefront managed by .

• Store Builder Library (SBL): 's SBL gives you full control over the design and feel of your checkout all the way down to the pixelregardless of the checkout option you choose.
• Localized Checkout:Let customers choose their preferred language or choose the appropriate one based on their geographical location. Supports 19and more languages.
• Tracking and testing tools: With 's built-in tracking tools, you are able to find ways to boost conversion rates. The majority of companies using this method are able boost their conversion rate up to 30.
• Personalized customer service:Although we offer you total control of your shopping cart Our team will be there to provide you with an optimal checkout experience for your company. Certain companies provide only personal support for their biggest clients and practically ignore small firms. We aren't one of them. with our clients' interests. Our team is always happy to assist in any way that they could.

Paddle

Paddle provides two versions of checkout:

• Embedded on your webpage
• Popup overlay

Within these two formats, they provide 50+ choices to customize. Paddle is compatible with 16 languages and can automatically translate your payment.

Subscription Management

Stripe

Stripe Billing includes a few various subscription options:

• Flat-rate billing (for an annual or monthly price) annual price)
• Multiple price billing (where the same product is sold for different rates in various locations)
• Per-seat bill (based on active customers during the billing cycle)
• Usage-based billing (single unit, or tied)
• Flat-rate + overage (a combination of usage-based and flat-rate billing)

This option is suitable for companies that only have some basic subscription-based offerings, however, companies with more complicated recurring billing requirements (e.g., SaaS) typically require an additional software. In this regard, Stripe has developed a close partnership with Chargebee so that it's easier for customers to obtain the subscription billing tools they need. While it's easy to integrate these two tools however, you'll need be able to manage and purchase both separately.

Additionally, Stripe offers a customer portal where customers can manage their accounts (both as well as Paddle offer this as well).

It offers an array of options for managing subscriptions that are designed specifically to be used by SaaS firms.

Plus, most of these choices are able to be setup without the need to write codes. You can, for instance, configure:

• Automated weekly, monthly or annual recurring billing.
• Prorated billing to accommodate upgrade -- or downgrade during the mid-cycle.
• Trials for free or paid for any duration.
• Trials without or with payment details (by not collecting details about payment You're less likely to experience friction at check-out, which usually leads to better conversion rates).
• Manual or automatic renewal.
• Upsells, cross-sells, one-time add-ons, and discounts.
• Plus there's and more...

Access to our API and webhooks library for additional customization options.

 One major point that often gets overlooked is whether or no your recurring billing model follows local transaction laws and regulations.

In particular, the Reserve Bank of India (RBI) has specific rules concerning recurring payment. At the time of writing, the RBI limit automatic recurring payment to 15,000 rupees (approximately 170 dollars). If a purchase exceeds that amount, the customer must approve each transaction manually. Additionally, you need to file an official mandate with the RBI to outline the steps you need to follow for ensuring compliance. If you don't make a formal mandate application or let customers approve the large transactions, you could face heavy fines or be prevented from selling products to consumers from India.

Though some subscription management software are able to release updates for community members whenever they are informed of new rules, you're the one held responsible for keeping track the applicable laws and regulations. If you fail to adhere to the rules, you may face sanctions or ban from conducting business within that region. The majority of companies will require more staff in order to handle this.

 Customers don't need to be concerned about this since we'll take on transaction liability for our customers.

Our team of legal experts is up-to-date on all relevant legalities, ensures the necessary procedures are in place, takes the lead on audits, and offers individual guidance regarding how to remain legally compliant- all for no cost.

Bonus: Digital Invoicing

's Digital Invoicing (DI) can help you handle B2B orders alongside B2C purchases. By using DI, you will be able to:

• Manage and create custom quotes in real time (including custom tags, coupons, discounts, and many more).
• Set quote expiration dates.
• Accept and request the payment.
• Add custom notes for your prospective customer or prospect.
• Offer a quote that is self-service (this is particularly useful when clients require approval prior to purchasing).
• Plus much plus.

Paddle

Using a series of webhooks as well as their API, Paddle supports the following subscription models:

• Fixed
• Tiered
• Per-seat
• Metered

Additionally, certain of these alternatives could be blended. As an example, you can have a tiered product that allows each tier the use of a amount of seats.

Paddle allows free or paid trial, but users will need to submit payment details for the trial. Paddle additionally automatically adjusts prorated amounts when customers change their plans mid-cycle (e.g. or add new users or make an upgrade).

Analytics and Reporting

Stripe

Stripe provides a range of tools for revenue recognition to assist you in reducing your expenses and accounting, such as:

• Basic accounting reports like balance sheets, as well as income and balance sheets.
• Configurable revenue rules like excluding passing through fees or auto-adjusting the time-to-receive.
• Revenue overview reports.
• And more...

Reports can be reviewed in the Stripe dashboard and some reports are available for download in an CSV file. Additionally, you can integrate it the most popular accounting tools, such as QuickBooks Desktop and Xero. But, the capability to import information from revenue recognition companies to Stripe is currently in beta.

Data and Analytics Reporting is an extensive suite that helps you understand:

• How each product contributes to the bottom line of your business.
• The time when customers are the most likely to drop off.
• What coupons or promotions have been successful.
• Which subscription model generates the highest amount of income.
• The location of your clients.
• What currencies and payment methods consumers prefer.
• Plus many and more...

The majority of the information available can be found in one of two dashboards that include the income overview dashboard as well as the subscription overview dashboard.

The dashboard for revenue overview includes more general data like total transactions per country or net sales by product.

The dashboard of subscription overview allows you to drill further into specific data like active customers or monthly recurring revenue (MRR) in the course of time.

If you don't see exactly the report you're looking for in these dashboards, you can create and save custom reports. You can also reach out to our team to help you locate (or build) the report you need. Any report can be viewed on your dashboard, or downloaded as an CSV, PNG or XLSX.

Paddle

Paddle recently acquired ProfitWell in order to provide reporting and analytics features. The integration, however, isn't yet complete, which means there may be some variances between these two platforms. As an example, they will show distinct MRR.

When fully integrated, Paddle will be able to:

• Automatically keep track of and publish key performance indicators such as MRR.
• Check user engagement, churn and.
• Use benchmarking and segmentation tools to help you.
• And more...

Pricing

Stripe

As a DIY platform the pricing of Stripe works differently from Paddle or. With Stripe, you'll need pay for extra tools and staff to handle different aspects of your payment lifecycle, including advanced fraud detection payment management, subscription management, VAT and sales tax and more.

Stripe is also pricing the wallets and cards differently in comparison to other payment options including ACH or SEPA.

With all of the payment options listed above, you'll have access to some of their features, but not all of them. As an example, Stripe charges additional fees for 3D-secure transactions, invoicing, tax features, and more.

To learn more about Stripe, visit their website.

With , you'll have access to the whole platform (and every service) at a flat rate. We take care of all responsibility for your transactions and lead the charge on VAT and sales tax so you don't need additional software or headcount.

Our team works with you to find an affordable price based on the volume of transactions . Additionally, you'll be charged when transactions are completed.

Paddle

Paddle advertises a flat-rate fee for their main product, which covers the bulk of the features you will need -for example, payment processing, checkout, subscriptions, international tax and compliance, fraud protection and reporting, and much more However, it does not include everything.

In this case, Paddle collects a 10% commission to recover empty carts.

For more information about Paddle, visit their website.

Customer Reviews

Stripe

Stripe currently has 4.4 rating on G2 (a well-known software review website) with more than 82 reviews.

currently has 4.5 rating in G2 along with 184+ reviews.

This is what a few of our clients had to say:

Paddle

Paddle currently has 4.5 rating on G2 with 145+ reviews.

Conclusion: vs. Paddle vs. Stripe

If you're selling physical goods or services or services, then Paddle is not an option, which makes Stripe the best choice out of the three options discussed here. If you're selling digital goods, Stripe may not be your best option since you'll be on your own in constructing a full payment solution (which can be expensive and takes a long time).

It has served SaaS companies since twice the time of Paddle and offers more features and capabilities. Also, it is better equipped to help B2B companies.