A detailed comparison of Stripe as compared to. Paddle vs.

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

• What aspects of the lifecycle of payments each solution is a viable option for (e.g. the processing of payments collecting and remitting tax and managing subscriptions) and what additional software you'll need to add to your tech stack.
• Which industries and businesses each serves.

Then, we provide a detailed comparison of key tools like checkout or reporting. In addition, we provide testimonials and examples of the various solutions.

In simple terms, Stripe primarily deals in payment processing. Paddle and Paddle deal with the processing of payments, managing subscriptions, collecting and remitting tax, fraud protection, and many more with no the requirement for any additional software.

 Table of Contents

•   What parts of the payment lifecycle will you be able to control and what additional software are you going to require for a complete payment solution?
•   What types of businesses and which industries can use the various platforms?
•   Functionality and feature comparisons
•     Process Payment
•     Calculating and remitting taxes on sales, VAT, and GST
•     Checkout
•     Subscription Management
•     Analytics and Reporting
•   Pricing
•   Customer Reviews

Note: Information in this article is accurate at the time of writing but may change.

Which aspects of the payment lifecycle are you able to control and what additional software do you require for a comprehensive payment solution?

Stripe is a payment processing company.

Stripe is best known for its payment processing capabilities, so they assist you in collecting payment details and get payments accepted. In addition, they also provide basic services that allow you to manage subscriptions and fraud detection, invoices, and more.

The additional options can meet the requirements of some startups, but most companies end up needing more robust options. As time goes on, you'll require more software to handle the complex payment requirements, take on different payment options around the globe, or even create a customized checkout process. It's a good thing that most developers are able to connect Stripe with most other software (however you must pay for each software individually).

The majority of companies that use Stripe also need additional staff to handle sales tax (and VAT) and compliance with regulatory requirements. While Stripe collects taxes on sales and VAT for your company, you are responsible to pay it. If you pay these taxes in the wrong amount, at the wrong time or with the incorrect method, you could face penalities and losses in money. (More on this subject later. )

Additionally, you'll be accountable of staying current and following local regulations and laws in the area where the customers reside. This can be a daunting task for any company which is why most companies dedicate an entire department to the job.

: The Entire Payment Lifecycle

• Multiple payment processors (which improves authorization rates and helps transact globally).
• Flexible management of subscriptions and tools for recurring billing.
• B2B electronic invoicing.
• Advanced methods of fraud detection.
• Fully customizable check out (down to the last pixel).
• Analytics and reports that are detailed.
• and there's plus.

You'll have the ability to handle all aspects of your payment lifecycle from your dashboard without adding extra programs or heads.

Paddle: Most of the lifecycle of a payment

Paddle offers options for processing payments in addition to subscription management and detection of fraud, and has more features than Stripe's solutions. However, some of Paddle's features are less robust than  Stripe's capabilities. For instance,'s checkout options are more flexible than Paddle's checkout options (more about this in the future).

If Paddle does not provide the features you need, you may require an additional program or move to a different service.

As with Paddle , Paddle is an MoR.

Which types of companies and which industries can benefit from the Platforms?

Stripe: Nearly Any Business

Stripe can be used by almost any kind of business in nearly any industry. However, SaaS companies will inevitably encounter some issues while using Stripe.

As we mentioned earlier, companies using Stripe are entirely responsible for paying sales tax and VAT. There was a time that SaaS companies didn't have to remit taxes on sales or VAT however, a lot of states and nations are drafting (and insisting on enforce) law changes that require SaaS firms to pay VAT or sales tax.

Two examples are provided:

• 1 January 2015, the European Union began requiring software sellers to collect and remit VAT according to the location of the buyer -- not the place of operation for the business or its employees.
• In 2018 it was the year that The United States Supreme Court has ruled that states are allowed to charge sales tax on purchases from out-of-state sellers (including online sellers) however the seller does not have a physical presence in the state in which tax is levied.

Keeping track of and adhering to constantly changing tax laws isn't easy. This is why SaaS businesses (and those selling digital products) prefer the right solution that will take care of remitting sales tax as well as VAT on your behalf.

: B2C and B2B SaaS or Digital Goods Companies

For nearly 20 years the company has provided services to B2B and B2C companies that sell SaaS, digital products, as well as software downloads:

Paddle B2C SaaS

Paddle has been serving SaaS businesses for about 10 years. Paddle's platform is more suitable for B2C firms, however, they are working on adding more features that are suitable for B2B companies, such as automatized invoices.

If adding B2B features is planned for the in the near future, these services may be established when you require they. However, if you're already selling B2B products, you may want look at a different option that has fully functioning B2B features ('s Digital Invoicing tool that is B2B-specific has been live for several years).

Then, we will examine Stripe vs. vs. Paddle, according to specific characteristics.

Functions and feature comparisons

Process Payments (Payment Options, Currency, and More)

Stripe

In order to begin processing transactions with Stripe You must set up each location to use the appropriate currency and payment options that you would like to accept in that place. After you have set it to go live, Stripe will automatically convert price of products and show the correct currencies and payment options during the time of checkout.

Stripe supports 135+ currencies.

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

Stripe is also able to support transactions in person via the Stripe Terminal and mobile SDKs.

makes it simple for SaaS and eCommerce companies to accept payment in a variety of currencies and preferred payment methods around the world. Instead of configuring every one individually, sellers can simply switch on localized payment and begin accepting international payments right away.

However, Stripe automatically converts prices into local currency for you, it also gives you greater flexibility:

• It is possible to let the conversions for you, oryou can set a fixed price for each of your products in each currency.
• You can let choose the appropriate currency according to the user's location, you can choose one specific currency per area, or you could let users pick their preferred currency. supports 23+ currencies.

 Customers can pay through:

• Credit cards include Visa, MasterCard, American Express, Discover, JCB as well as UnionPay.
• ACH.
• SEPA Direct Debit.
• Wire transfers.
• The wallets include PayPal, Apple Pay, Amazon, Alipay, and other.

Payouts are more successful rate when the payment gateway is in the exact area as the buyer. automatically routes online payments through the payment gateway that has the best approval rates applicable to that particular type of payment and its location.

Furthermore, the use of different payment options can resolve the majority of problems with failed payments that arise due to network errors. If one of the payment gateways is experiencing a technical failure, automatically retries the payment using a different gateway -with your staff not having to lift a finger.

Bonus: Partner with Sift

The company is at the forefront of the risk and fraud aspects (including chargebacks). We collaborate together with Sift, a global market leader in risk analysis as well as fraud prevention, to keep your transactions secure. Sift utilizes machine learning and AI to:

• Accurately make fraud decision.
• Increase approval rates, which results in fewer false positives.
• Make sure that bad actors are stopped before transactions are being processed.

also blocks transactions from nations and countries where companies are not permitted to conduct business.

Paddle

Paddle additionally uses multiple payment gateways and lets companies accept payments from all over the world with only a few configuration.

Paddle is compatible with 20 currencies, popular credit cards (including MasterCard, Union Pay and many more) as well as wire transfers as well as the wallet (including Apple Pay, Google Pay, PayPal, and Alipay) -- although some of these options are currently in beta testing.

Inputing and submitting Sales Tax, VAT, and GST

Stripe

Stripe acquired TaxJar to help you calculate taxes on sales, VAT and GST. They only offer directions for activating tax-related features and assigning tax codes. It is your responsibility to make decision-making and the implications of using those tools (e.g. being aware of the classification of your product in tax laws and whether or not you are nexus-related, you must to be registered, collect, file, and submit consumption tax). If you're unsure about ways to reduce tax burdens and qualify for tax reductions, rates, or other tax-related question it is likely that you will be instructed to consult your tax advisor or read through the help articles.

 If you've created it incorrectly and pay the wrong amount (or kind) of tax, then you'll be liable.

Additionally, paying sales tax is often more involved than simply filling in a spreadsheet and then writing a check. In the last few years, more and more nations have imposed more obligations in order to be compliant. For example:

• Some countries like Colombia, Japan, Mexico, Serbia, and others require local representation, meaning you have to hire someone with an actual presence in the country in order to pay your tax liability. It can range from $5k-$15k annually.
• Countries such as India, Indonesia, Japan and many more require your bank account "pre-funded" meaning you must determine the amount of tax you'll owe, and then keep the money until it's time to make a tax filing (up up to three months ahead).
• Countries such as Serbia, United Kingdom, Taiwan, and others require electronic invoices (it applies for non-resident businesses, too). It typically cost companies between $2k and $5k annually. Notice: E-invoicing mandates are growing at a rapid rate as the EU outlining universal electronic invoicing requirements by 2028.
• Some countries like Taiwan, Indonesia, Nigeria, Vietnam, and others have you file tax returns on income in addition to indirect taxes (this can add up to $5-10k each year).

Additionally, wiring international tax payments isn't simple or cost-free. Banks that receive and corresponding are both charged fees. There's also an additional risk associated with foreign transactions.

Therefore, although Stripe has taken an important step towards helping to collect sales tax acquiring TaxJar, they're a long away from offering an all-in-one solution for tax collection and international tax.

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

With over 20 years of experience filing 1,200+ tax returns every year Our team is able to ensure that the right amount (and type) of tax indirect collection when you pay your bill -- we even handle tax-exempt transactions in the U.S. and 0% reverse charges when allowed internationally.

files and collects taxes across 52 nations, 13 provinces and in all of the U.S. states that collect sales tax (five states don't collect any sales tax).

Then, our team remits the taxes on your behalf and ensures all the necessary procedures are in place for you to remain compliant. If a country or state confronts you regarding tax compliance the team from our firm will guide you on the best way to handle it to them, even going as far as copy and paste responses.

We establish and maintain connections with tax professionals around the globe to ensure we are aware of rules and laws as they evolve.

Bonus: Custom Tax Codes

Tools like TaxJar, Avalara, and other tax software provides users with tax codes applicable to all kinds of services and products. But, the majority of companies ultimately want to provide a product or service which doesn't fall into the definition of one of the tax codes offered (e.g. the possibility of an in-person conference with some online attendees and speakers). With a tool such as TaxJar it will be yourself to determine and calculate the appropriate amount and type of indirect tax because TaxJar doesn't provide a tax code for the specific situation you're in.

It's not a problem for sellers since we have just released a function that lets us make unique tax codes for each product customized by use case -- within minutes. Just tell us about your product or service and we will create tax codes for you.

Paddle

Like , Paddle takes the lead on gathering and remitting the sales tax, VAT, and GST on behalf of the benefit of you. Unlike , Paddle doesn't support tax exemption instances in the U.S.

Checkout

Stripe

Stripe Checkout can be described as a prebuilt payment page designed for use on any device. You have a few choices for personalization (e.g. text, fonts blocks, forms colours, shapes etc.) however, it's very small. Stripe instantly converts Checkout to the right the language (35plus options) depending on the customer's location.

allows you to customize each aspect of your checkout experience, with custom fields, to custom colors. It also gives you the ability to choose whether you want to give your developer complete control over checkout or let manage it for you (or someplace within the middle).

Here's an overview of 's checkout choices:

• Three different versions: You have the option to embed checkout directly on your webpage, use a popup checkout, or redirect clients to an Web Storefront managed by .

• Store Builder Library (SBL):  It's SBL allows you to have total control over the appearance and feel of your checkout down to the pixel -no matter which payment method you pick.
• Localized Checkout:Let customers choose their preferred language or choose the appropriate option based on the customer's place of residence. It supports 19+ languages.
• Built-in tracking and testing tools: With 's built-in tracking tools, you will be able to find ways to boost the rate of conversion. Many companies who use this method are able increase their conversion rates up to 30.
• Personalized customer support:Although we offer you total control over your checkout Our team will be there to provide you with the best checkout experience for your business. Certain companies provide only individual support to their most important customers and do not provide any support for small firms. We don't have with our clients' interests. Our staff is happy to assist in any way that they can.

Paddle

Paddle has two options for the checkout process:

• It is embedded on your site
• Popup overlay

With these two formats you can choose from 50 different options to personalize. Paddle can support 16 languages, and can automatically translate your payment.

Subscription Management

Stripe

Stripe Billing includes a few various subscription options:

• Flat-rate bill (for an annual or monthly price) annual price)
• Billing for multiple prices (where one item is offered at different rates in various locations)
• Per-seat billing (based on active users during the billing cycle)
• Usage-based charging (single unit, or tied)
• Flat-rate + overage (a combination of flat-rate and usage-based billing)

These options work for some companies that only have just a handful of subscription-based services, however, companies with more complicated recurring billing requirements (e.g., SaaS) typically require an additional software. For this reason, Stripe has developed a close partnership with Chargebee so that it's easier for their customers to get the subscription billing software they need. Although it's really easy to combine these two apps, you will have be able to manage and purchase both of them separately.

Additionally, Stripe offers a customer website where users can control their accounts (both as well as Paddle provide this feature as well).

offers a variety of subscription management options built specifically for SaaS businesses.

Additionally, the majority of these options can be set up without the need to write codes. As an example, you could configure:

• Monthly, weekly, or annual recurring billing.
• A prorated fee is billed to allow for upgrade -- or downgrade -- during the mid-cycle.
• Trials that are free or for a fee of any length.
• Trials without or with information about your payment (by not collecting details about payment You're less likely to experience friction at the checkout point, leading to better conversion rates).
• Manual or automatic renewal.
• One-time additions and discounts.
• and much and more...

You will also have access to our API and webhooks library for additional possibilities to customize your site.

 One major point that often overlooks is whether or no your recurring billing model follows local regulations and laws governing transactions.

As an example for instance, for instance, the Reserve Bank of India (RBI) has very specific regulations regarding recurring payments. At the time of writing the RBI limits automatic recurring payments to Rs15,000 (approximately one hundred dollars). If the amount of a transaction is greater than that amount, the customer has to approve the transaction in person. Also, you must submit an official directive to the RBI which outlines the procedure you need to follow to ensure compliance. If you fail to file a mandate or allow customers to manually approve big transactions, you could face massive fines, or even be barred from selling to customers in India.

Though some subscription management software will release community updates whenever they learn about new regulations You're the person accountable for keeping track of and adhering to all rules and laws. If you do not conform, you could be subject to fines or be banned from conducting business within that area. The majority of companies will require more staff in order to handle this.

 customers don't have to worry about this because we assume the responsibility for transactions on behalf of you.

Our legal team stays up to date on every legal aspect, and ensures that the appropriate procedures are in place. They also take the lead on audits, and offers individual guidance for staying legally compliant- all at no additional cost.

Bonus: Invoicing via digital

DI (DI) lets you manage B2B orders along with B2C purchases. Through DI, you are able to:

• Create and manage custom quotes in real time (including personalized tags, coupons, discounts, and much more).
• Set quote expiration dates.
• Accept and request the payment.
• Make notes that are specific to your prospect or customer.
• Create a widget for self-service quotes (this is particularly useful when customers need approval before purchasing).
• and many more.

Paddle

Using a series of webhooks and their APIs, Paddle supports the following subscription models:

• Fixed
• Tiered
• Per-seat
• Metered

Plus, some of these alternatives could be mixed. You could, for instance, have a tiered product with each level allowing the use of a number of seats.

Paddle allows free or paid trial, but users will need to submit payment details prior to starting the trial. Paddle also automatically applies the prorated amount when users change their plans mid-cycle (e.g. or add new users or make an upgrade).

Analytics and reporting

Stripe

Stripe offers a suite of revenue recognition tools that assist you in reducing your expenses with the following tools:

• Standard accounting reports, such as balance sheets and income statements.
• Flexible revenue rules for example, such as excluding the passthrough fee and setting auto-adjusting time-to-receive.
• Overview of revenue reports.
• and more...

All reports can be viewed in your Stripe dashboard and some reports are available for download as CSV files. CSV file. It is also possible to integrate with popular accounting tools including QuickBooks Desktop and Xero. But, the capability to transfer data from revenue recognition companies into Stripe is in the early stages of testing.

Reporting and Analytics is a robust suite that helps you understand:

• The impact each product has on your bottom line.
• Customers are more likely to abandon.
• What promotions or coupons are working.
• Which subscription models generate the highest revenues.
• The location of your clients.
• Which payment options and currencies do clients prefer.
• Plus much and more...

A majority of this data can be found on either of the dashboards either The Revenue overview dashboard as well as the subscription overview dashboard.

The revenue overview dashboard 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 including active customers and monthly recurring revenues (MRR) in the course of time.

If you can't find the report you require in these dashboards, you could make and save your own custom reports. You can also contact us and we'll assist you in finding (or create) the report you require. Any report can be viewed in your dashboard or downloaded in the CSV, PNG or XLSX files.

Paddle

Paddle recently bought ProfitWell to offer reports and analytics capabilities. But, the integration isn't fully completed, and there may be some variances between platforms. In particular, they will show various MRR.

After integration, Paddle will be able to:

• Automatically monitor and provide reports on important performance indicators, like MRR.
• Track user engagement and reduce churn.
• Offer benchmarking tools and segmentation techniques.
• Plus...

Pricing

Stripe

A DIY-oriented platform the pricing of Stripe works differently from Paddle or. When using Stripe you'll have pay for extra software and headcount to manage different aspects of your billing lifecycle such as advanced authentication, subscription management, remitting sales tax and VAT, and much more.

Stripe has a price structure that currently rates card and wallets in a different way as compared to other payment methods, like ACH or SEPA.

With all of these payment options, you'll have access to many of their services but not all of them. For example, Stripe charges additional fees for transactions that are 3D secure, invoicing, tax features, and more.

For more information about Stripe, visit their site.

You'll be able to all access to all of the platform (and all services) at a flat rate. Since we take on 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 will work in partnership with you to determine the most affordable cost based on the volume of transactions you move through . Additionally, you'll be charged when transactions occur.

Paddle

Paddle offers a flat-rate price for their main product, which covers the bulk of the features you will need -payment processing, checkout, subscriptions, worldwide fiscal and regulatory compliance protection against fraud and reporting, and much more -- but it doesn't contain everything.

In this case, Paddle collects a 10% profit to help recover abandoned carts.

For more information on Paddle, visit their website.

Customer Review

Stripe

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

currently , the company has 4.5 ratings on G2 with more than 184 reviews.

Here's what some of our clients had to say:

Paddle

Paddle currently has 4.5 five stars on G2 along with more than 145 reviews.

Final. Paddle vs. Stripe

When you're offering physical goods or services or services, then Paddle are not an option, making Stripe the most suitable choice of the three options described here. If you are selling digital goods, Stripe may not be the best choice because you'll have to figure out how to build out a complete payment system (which is costly and time-consuming).

has been serving SaaS enterprises since twice the time of Paddle and provides greater capabilities and features. is also better prepared to help B2B companies.