Paddle

What it is

Paddle is a merchant of record for SaaS companies, handling payments, tax, compliance, and subscriptions. Acts as the seller on behalf of the developer, simplifying global sales.

When it fits — and when it doesn’t

Known weaknesses

Each one links to the public issue, changelog or docs page it came from, where we have one.

1. 01

   Standard pricing is not available for low-value products or invoicing requirements

   The standard 5% + 50¢ pricing model excludes businesses selling products under $10 or those requiring invoicing, forcing them to seek custom quotes.

   Source: paddle.com/pricing ↗
2. 02

   High transaction fees for low-value items

   The fixed 50¢ fee per transaction significantly impacts the margin for low-value digital products, as the fee can exceed the product price itself.

   Source: paddle.com/pricing ↗
3. 03

   Cannot be used to sell physical products or anything that needs physical delivery

   Vendor page: “Physical products or products that require physical delivery”

   Source: paddle.com/help/start/intro-to-paddle/what-am-i-not-allowed-to-sell-on-paddle ↗
4. 04

   Not for human services unrelated to software, such as pure consulting

   Vendor page: “Human services that are not related to a software offering”

   Source: paddle.com/help/start/intro-to-paddle/what-am-i-not-allowed-to-sell-on-paddle ↗
5. 05

   Not for marketplaces that let other sellers sell to customers

   Vendor page: “Any product or service that enables non-Paddle Sellers to sell products and services to”

   Source: paddle.com/help/start/intro-to-paddle/what-am-i-not-allowed-to-sell-on-paddle ↗

What it does well

• Acts as merchant of record for global sales tax obligations

  Vendor page: “As your Merchant of Record, Paddle takes care of all your global sales tax obligations”

• Fraud protection: blocks card attacks, fights chargebacks, screens fraudsters

  Vendor page: “Prevent card attacks, fight bad-faith chargebacks, and screen fraudsters.”

• Subscription billing in 20+ currencies with multiple payment methods

  Vendor page: “Paddle's subscription billing solution supports over 20 currencies”

• Includes free subscription analytics for revenue reporting

  Vendor page: “free subscription analytics software for revenue reporting”

Pricing

Free tier

No

Paid from

5% + 50¢ per checkout transaction

Model

Usage-based

Enterprise plan

No

No monthly fees, migration fees, or hidden extras; custom pricing for high-volume businesses.

Pricing not independently confirmed — check the vendor’s page. Vendor pricing ↗