An in-depth comparison of Stripe vs. Paddle vs.

to help you decide between Stripe vs. Paddle vs. , this comparison guide:

• What aspects of the lifecycle of payments each solution is a viable option to (e.g., payment processing, gathering and remitting taxes as well as subscription management) and what additional software you'll need to add to your technology stack.
• Which industries and companies each one serves.

Then, we provide an in-depth comparison of the most important options like checkout and reporting. In addition, we provide user reviews as well as case studies for each solution.

In a nutshell, Stripe primarily deals with processing payments, while and Paddle manage the processing of payments, managing subscriptions, collecting and remitting tax, fraud protection, and many more with no the need for additional software.

 Table of Contents

•   What areas of the payment lifecycle can you control and what additional software do you require to complete your payment system?
•   What kind of business and which industries can use every platform?
•   Comparison of features and functionalities
•     Process Payment
•     Input and payment of sales tax, VAT, and GST
•     Checkout
•     Subscription Management
•     Analytics and Reporting
•   Pricing
•   Customer Reviews

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

Which aspects of the lifecycle of payments can you manage and what other software will you need to complete your payment system?

Stripe is a payment processing company.

Stripe is most well-known for payment processing, meaning they assist you in collecting information about payments and have them approved. Additionally, they provide a number of basic functions for subscription management, fraud detection, invoicing, and more.

These extra features may meet the needs of a few early stage start-ups, however, the majority of companies will require more robust options. In the end, you'll require additional software to manage complex recurring billing needs, accept various payment options across the world, or create an individual checkout procedure. The good news is that many developers find it easy to incorporate Stripe with other programs (however you must pay for each software in its own way).

Many companies that utilize Stripe require additional employees in charge of taxation of sales (and VAT) and regulatory compliance. While Stripe takes sales tax and VAT on behalf of your company, you are responsible to pay it. If you make a mistake in remitting these taxes in the wrong amount, or at the wrong moment, or with the incorrect method there's a chance that you'll be liable for penalities and losses in money. (More on this later. )

Additionally, you'll be accountable to be up-to-date and following local laws and regulations where you have customers. This is a huge undertaking for any organization, and that's why the majority of companies allocate an entire section to the work.

The entire payment lifecycle

• Multiple payment processors (which increases authorization rates and makes it easier to transfer money internationally).
• Flexible subscription management tools and recurring billing tools.
• B2B Digital Invoicing.
• Advanced methods of fraud detection.
• Flexible checkout (down to the last pixel).
• Analytics and reports that are detailed.
• And there's and more.

You'll have the ability to handle every aspect of the process of payment from the account without having to install additional headcount or software.

Paddle: The Majority of the Payment Lifecycle

Paddle provides solutions for payment processing as well as subscription management and detection of fraud, and offers more advanced features than Stripe's options. However, some of Paddle's options are not as robust as  the features of. 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 you need, you may have to install additional software or move to a different solution.

As with Paddle , Paddle is an MoR.

Which types of companies and Which Industries Can Use Each Platform?

The Stripe App: Nearly Any Business

It is a great choice for nearly any type of enterprise in virtually any sector. However, SaaS companies will inevitably encounter some issues with Stripe.

Like we said earlier, businesses using Stripe are solely responsible for paying sales tax and VAT. There was a time that SaaS businesses didn't need to pay sales tax or VAT, but many states and countries are creating (and rigorously enforcing) law changes that require SaaS firms to pay VAT or sales tax.

Here are two examples:

• On January 1, 2015 on the 1st of January, 2015, the European Union began requiring software sellers to collect and remit VAT according to the location of the purchaser rather than the location of the company's employees or of its headquarters.
• In the year 2018 it was the year that The United States Supreme Court ruled that states are allowed to charge sales tax on purchases made through sellers who are not in the state (including online sellers), even if the seller doesn't have a physical presence in the state that taxes.

Being aware of and adhering to constantly shifting tax law isn't an easy task. It's the reason SaaS businesses (and businesses that sell digital products) 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

Since its inception the company has provided services to B2B and B2C businesses that market SaaS Digital products and software that is downloadable:

Paddle: B2C SaaS

Paddle is serving SaaS firms for around ten years. Paddle's platform is better suited to B2C businesses, but they're currently working on adding new features for B2B firms, for example, automatized invoices.

If adding B2B features is planned for the in the near future, these services may be established when you require they. If you're currently offering B2B-specific products then you might want to consider another option with B2B functions that are fully functional ('s Digital Invoicing tool for B2B is in operation for a number of years).

Next, we examine Stripe vs. Paddle vs. Paddle, according to particular attributes.

Functionality and Feature Comparisons

Payment Processing (Payment Methods, Currencies, and more)

Stripe

For Stripe to start accepting payments Stripe You must configure each location with the currency and payment methods that you would like to accept at that particular location. After you have set it to go live, Stripe will automatically convert product prices and display the correct option for payment and currency at checkout.

Stripe supports 135+ currencies.

You'll be able to 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, offer support for PayPal.

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

It makes it easy to SaaS and ecommerce companies to accept payment in a variety of currencies and preferred payment methods around the world. Instead of configuring each one separately, merchants can switch on localized payment and start accepting global payments as soon as they are ready.

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

• You could let your company handle the conversions for you, oryou can decide on a set price for your items for each one of the currencies.
• It is possible to let the user choose the appropriate currency based on the user's place of residence. You can also select the appropriate currency for each area, or you can let the customer pick the currency they prefer. supports 23+ currencies.

 Customers can make payment by using:

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

Payouts are more successful rate when the payment gateway is in the exact area as the buyer. Automatically routes online payments to the gateway with the highest approval rates applicable to that particular payment method and the location.

Furthermore, the use of multiple payment gateways solves most failures in payment that occur because of network problems. When a gateway for payment is experiencing a technical failure then it automatically attempts to retry the transaction using a different gateway -with your staff not having to lift a finger.

Bonus: Partners with Sift

is the leader in the risk and fraud aspects (including chargebacks). We partner in partnership with Sift, a global market leader in risk analysis as well as fraud prevention, to keep your transactions secure. Sift utilizes machines learning and AI in order to:

• Accurately make fraud decision.
• 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 are not permitted to do business.

Paddle

Paddle is also a payment options and allows companies to accept global payments with minimal set-up.

Paddle works with more than 20 currencies, credit cards that are popular (including MasterCard, Union Pay, and more) wire transfers as well as wallets (including Apple Pay, Google Pay, PayPal, and Alipay) however, some of these options are still in beta testing.

Inputing and submitting Sales Tax (VAT, GST) and Sales Tax

Stripe

Stripe has acquired TaxJar to help you calculate taxes on sales, VAT and GST. They only offer instructions for enabling taxes features as well as assigning tax codes. You are responsible for the decision-making and the implications when using the options (e.g., knowing the classification of your product according to tax law, and knowing if and where there is a nexus and you need to register, collect tax, file, and file the consumption tax). If you're unsure about how to optimize tax rates, qualify for reduced tax rates, or any other tax-related issue it is likely that you will be instructed to talk to your tax adviser or look through the articles.

 If you've created it incorrectly and you pay the incorrect amount (or type) or tax amount, you'll be responsible.

In addition, the process of submitting sales tax can be more complicated than just filling out a spreadsheet and then writing a check. In the last few years, more and more nations are imposing further requirements for compliance. For example:

• Some countries like Colombia, Japan, Mexico, Serbia, and others need local representation, meaning you have an employee with an actual presence in the country to be responsible for your tax obligations. The cost can vary between $5k and $15k each year.
• Certain countries such as India, Indonesia, Japan and many more require your accounts to be "pre-funded" meaning you need to know the tax amount that you'll be liable for and hold the money until you are ready to make a tax filing (up up to 3 months in advance).
• Countries such as Serbia, United Kingdom, Taiwan, and others require electronic invoices (it also applies to companies that are not resident and other companies, too). The typical cost for companies is $2k to $5k annually. Note: E-invoicing mandates are growing at a rapid rate -- with the EU rolling out universal electronic invoicing requirements by 2028..
• Countries like Taiwan, Indonesia, Nigeria, Vietnam, and others require you to file taxes on your income along with to indirect taxes (this can add up to $5-$10k annually).

Finally, wiring international tax payments is not effortless or inexpensive. Banks that receive and corresponding each charge fees, and then there's an additional risk associated when dealing with transactions that are foreign.

So, while Stripe has taken a major step to help customers collect sales tax through acquiring TaxJar, they're a long way from providing an end-to-end solution to sales tax as well as international tax.

takes care of the entire procedure of collecting and paying the sales tax, VAT as well as GST for you .

With more than 20 years' expertise in filing more than 1,200 tax returns every year Our team is able to ensure that the right amount (and type) in indirect taxes are collected at checkout -- we can even manage tax-free transactions in the U.S. and 0% reverse charge when permitted internationally.

Files and collects tax in over 52 countries, 13 provinces and in all of the U.S. states that collect sales tax (five states don't collect any taxes on sales).

After that, we remit the taxes on your behalf and will ensure that the proper steps are taken for you to remain compliant. If a state or country asks you to comply with tax laws, our team will advise on the appropriate response to them, even going as far as copy and paste responses.

We establish and maintain connections with tax specialists around the world to make sure we are aware of the latest laws and regulations that alter.

Bonus: Custom Tax Codes

Software like TaxJar, Avalara, and other tax software provide the tax code for all kinds of services and products. However, most companies will eventually want to offer services or products that doesn't fit neatly into the descriptions of the tax codes provided (e.g. the possibility of the in-person event with virtual attendees and speakers). By using a tool like TaxJar it will be yourself to determine and pay the correct amount as well as the type of indirect tax because they won't have a tax code for your particular situation.

This isn't an issue for sellers as we've recently rolled out a function that lets us build unique product tax codes customized by use case -and in just only a few minutes. Just tell us about your product or service and we'll generate 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. In contrast , Paddle doesn't support tax exemption cases within the U.S.

Checkout

Stripe

Stripe Checkout is a pre-built payment webpage that is designed to be used on any device. There are several possibilities for customizing (e.g. the font forms, block patterns and colors etc.) However, the options are pretty limited. Stripe instantly converts Checkout to the appropriate the language (35+ choices) depending on the customer's area of.

allows you to customize each aspect of your checkout process, including custom fields and colours. It also gives you the ability to choose whether you want to give your developer complete control over checkout or let the system manage it on your behalf (or somewhere there in-between).

This is a brief overview of the check-out choices:

• Three versions: You have the possibility of embedding checkout directly on your webpage you can also use a popup checkout, or direct your customers to an Web Storefront managed by .

• Store Builder Library (SBL): 's SBL gives you full control over the design and feel of your check-out all the way down to the pixel- regardless of which checkout method you select.
• localized checkout:Let customers choose their preferred language, or let them select the right option based on the customer's geographical location. Supports 19and more languages.
• built-in tracking and test tools: With 's built-in tracking tools, you can quickly identify ways to increase the conversion rate. Most companies that use this tool are able to improve their conversion rates by 30percent or more.
• Personalized customer support:Although we offer you total control of your shopping cart Our team will be available to help you build an optimal checkout experience for your company. Certain companies provide only individual support to their most important customers, and hardly ever provide support to smaller companies. We don't have with our clients' interests. Our team is ready to assist in any way they can.

Paddle

Paddle provides two versions of checkout:

• It is embedded on your site
• Popup overlay

With these two formats they provide 50+ choices to personalize. Paddle is compatible with 16 languages and will automatically translate your shopping cart.

Subscription Management

Stripe

Stripe Billing includes a few various subscription options:

• Flat-rate billing (for either a monthly or annual price)
• Multi-price billing (where the same product is sold for different rates in various locations)
• Per seat billing (based on the number of active users at the time of billing)
• Usage-based bill (single unit, or tiered)
• Flat-rate and overage (a combination of usage-based billing and flat-rate)

These options work for some firms that are only using some basic subscription-based offerings However, businesses with greater complexity in their recurring billing requirements (e.g., SaaS) often need an additional tool. To this end, Stripe has developed a closely-knit partnership with Chargebee to make it easier for their customers to get the subscription billing tools they require. While it's easy to integrate these two tools, you will have be able to manage and purchase each separately.

In addition, Stripe offers a customer portal where customers can manage their accounts (both and Paddle provide this feature as well).

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

Additionally, the majority of these choices can be set up without writing any programming. You can, for instance, set up:

• Automatic weekly, monthly, or annual recurring billing.
• Prorated billing to accommodate changes -- as well as downgrades -- at mid-cycle.
• Trials that are free or for a fee that are of any length.
• Trials with or without collecting information about your payment (by not collecting payment details You're less likely to experience friction at check-out, which usually leads to better conversion rates).
• Automatic or manual renewal.
• Cross-sells, upsells, once-off discount, add-ons.
• and there's and more...

Additionally, you will have access to our API as well as our webhooks library to provide more possibilities to customize your site.

 One major point that often goes unnoticed is whether or no your periodic billing plan is compliant with local regulations and laws governing transactions.

For example, the Reserve Bank of India (RBI) is a strict regulator concerning recurring payment. At the time of writing this article, the RBI restricts automatic recurring payments to the amount of Rs15,000 (approximately 170 dollars). If the amount of a transaction is greater than this amount, the client must approve each transaction manually. You also have to make an official request to the RBI which outlines the procedure you have in place to ensure the compliance. If you fail to file a mandate or have customers manually approve large transactions, you could face heavy fines or be prevented from selling your products to clients within India.

While some subscription management tools will release community updates whenever they discover new regulations, you're the one held responsible for keeping track of the laws and regulations. If you fail to comply, you could face penalties or even be barred from operating in the jurisdiction. Many companies require additional staff to manage this.

 Our customers do not have to worry about this because we assume the responsibility for transactions on behalf of the benefit of.

Our team of legal experts keeps up-to-date with the latest legal developments, makes sure that the appropriate procedures are in place, take the reins on audits and offers individual guidance regarding how to remain compliant -- all without additional charge.

Bonus: Invoicing via digital

The Digital Invoicing (DI) lets you manage B2B orders alongside B2C purchases. With DI, you can:

• Customize and manage quotes that are updated in real-time (including customized tags, coupons, discounts, and much more).
• Set quote expiration dates.
• Request and accept the payment.
• Create custom notes to your prospective customer or prospect.
• Create a widget for self-service quotes (this is very useful in situations where clients require approval prior to purchasing).
• And much plus.

Paddle

Utilizing a set of webhooks and their API, Paddle supports the following subscription model:

• Fixed
• Tiered
• Per-seat
• Metered

Plus, some of these choices are able to be combined. For example, you could have a tiered product where each tier allows for an individual amount of seats.

Paddle offers free and paid trials, however, clients will have to provide payment details for the trial. Paddle additionally automatically adjusts an amount prorated when customers upgrade their plans mid-cycle (e.g. adding new users or make an upgrade).

Analytics and Reporting

Stripe

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

• Basic accounting reports like balance sheets, as well as income and balance sheets.
• Revenue rules that can be configured, such as excluding the passthrough fee and setting auto-adjusting time-to-receive.
• Overview of revenue reports.
• and more...

The reports are all accessible within the Stripe dashboard. Some reports can be downloaded in a 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 other revenue recognition providers to Stripe is still in beta.

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

• How each product contributes to your bottom line.
• When customers are most likely to drop off.
• What coupons or promotions work.
• Which subscription model generates the most revenues.
• The location of your clients.
• What currencies and payment methods clients prefer.
• Plus much More...

Most of this information can be found on one of two dashboards that include the income overview dashboard or the subscription overview dashboard.

The revenue overview dashboard includes more general data like total transactions per country, as well as net sales per product.

The subscription overview dashboard lets you drill to more specific information such as 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 build and save your own reports. Or, you can contact us and we'll assist you in finding (or create) the report you need. Any report can be viewed in your dashboard or downloaded as the CSV PNG, XLSX, or XLSX file.

Paddle

Paddle has recently purchased ProfitWell to offer reports and analytics capabilities. However, the integration isn't fully completed, and there will be some discrepancies between the two platforms. In particular, they will show various MRR.

After integration, Paddle will be able to:

• Automatically keep track of and publish key performance indicators such as MRR.
• Monitor user engagement and churn.
• Offer benchmarking tools and segmentation techniques.
• Plus...

Pricing

Stripe

Being a platform for DIY the pricing of Stripe works differently than or Paddle. With Stripe you'll have pay for extra tools and staff to handle various aspects of the billing lifecycle such as advanced security measures for fraud, subscription management, remitting VAT and sales tax, and much more.

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

With all of the payment options listed above will allow you access to several of their offerings, however they're not all available. Like, for instance, Stripe charges additional fees for secure 3D transactions, invoicing, tax features as well as other features.

For more information regarding Stripe, visit their website.

You'll be able to accessibility to whole platform (and all services) at a flat rate. Since we take on the responsibility for transactions on your behalf and also take charge of sales tax and VAT, you won't need any additional software or additional staff.

Our team works in partnership with you to determine the most affordable cost depending on the number of transactions you move through . Plus, you'll only be charged when transactions occur.

Paddle

Paddle advertises a flat-rate fee for their core product which covers the bulk of the services you'll needfor example, payment processing and checkout, subscriptions, international taxes and tax compliance protection against fraud and reporting, among others -- but it doesn't contain everything.

As an example, Paddle collects a 10% profit to help recover empty carts.

For more information about Paddle, visit their site.

Customer Reviews

Stripe

Stripe is currently 4.4 rating on G2 (a well-known software review website) with over 82 reviews.

The company currently has 4.5 ratings on G2 with reviews of 184+.

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

Paddle

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

Final. Paddle vs. Stripe

When you're offering physical items or services, and Paddle isn't an option, which makes Stripe the best choice out of three choices discussed here. If you're selling digital goods, Stripe may not be the most suitable option as you'll be on your own to build out a complete payment system (which is costly and time-consuming).

It has served SaaS companies since twice the time of Paddle and provides more features and capabilities. It is also more prepared to support B2B businesses.