A detailed comparison of Stripe and. Paddle vs.

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

• What areas that each one provides a solution to (e.g., payment processing collecting and remitting tax and managing subscriptions) and what other software you'll require to integrate into your tech stack.
• What companies and industries each one serves.

Then, we provide details of how to compare key tools like checkout or reporting. In addition, we provide customer reviews and cases studies of each service.

In short, Stripe primarily deals in payment processing. Paddle and Paddle deal with billing, subscription management including tax collection and tax remitting, fraud protection, and more without the requirement for any additional software.

 Table of Contents

•   What areas of the payment lifecycle can you control and what additional software are you going to require to have a comprehensive payment solution?
•   What kinds of companies and which industries can use the various platforms?
•   Features and functionality comparisons
•     Process Payment
•     Calculating and remitting GST, sales tax, and GST
•     Checkout
•     Subscription Management
•     Reporting and Analytics
•   Pricing
•   Customer Reviews

NOTE: Information in this article is true at the time of writing but may change.

What areas that are part of the payment cycle will you be able to handle and which other programs are you going to 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 information about payments and have them approved. In addition, they also offer a few basic features for subscription management, fraud detection, invoicing and much more.

The additional options can meet the needs of some early-stage startups, but many companies require additional options that are more powerful. As time goes on, you'll require more software to manage complex recurring requirements for billing, to accept different payment options around the world, or design your own checkout system. The good news is that many developers can easily connect Stripe with other programs (however, you have to purchase each application in its own way).

The majority of companies that use Stripe will also require staff to manage taxation of sales (and VAT) and regulatory compliance. Although Stripe collects sales tax and VAT for your company, you are responsible to pay them. If you remit these taxes in the wrong amount, at the wrong time, or the wrong manner, you could face penalities and losses in money. (More on this subject later. )

In addition, you'll have to be accountable for staying up to date and adhering to the local laws and regulations in which the customers reside. This is a huge undertaking for any company which is the reason why many companies devote an entire division to this work.

The entire payment lifecycle

• Many payment processors (which increases authorization rates and helps transact globally).
• Flexible subscription management tools and automated billing tools.
• B2B electronic invoicing.
• Advanced methods of fraud detection.
• Flexible check out (down to the pixel).
• Analytics and reports that are detailed.
• And many more.

You'll be able to manage every aspect of the payment lifecycle from your account without adding extra software or headcount.

Paddle: The Majority of the Payment Lifecycle

Paddle provides options for processing payments in addition to subscription management and fraud detection, and has more features than Stripe's options. However, some of its options are not as robust as  the features of. For example, 's checkout is more customizable as are the checkout options on Paddle's (more about this in the future).

If Paddle isn't able to provide the capabilities you need, you may require an additional program or move to a different software or.

Similar to Paddle, it is a MoR.

What Types of Businesses and which industries can benefit from the Platforms?

The Stripe App: Nearly Any Business

The Stripe platform is used by nearly any type of enterprise in virtually any sector. However, SaaS companies will inevitably encounter some issues while using Stripe.

As we mentioned earlier, businesses using Stripe have the sole responsibility of the payment of VAT and sales tax. It used to be true that SaaS companies didn't have to pay taxes on sales or VAT but many states and nations are drafting (and strongly enforcement of) legislation that force SaaS businesses to pay VAT or sales tax.

Here are two examples:

• Since January 1st, 2015 The European Union began requiring software sellers to collect and refund VAT based on the location of the buyer -- not the address of the company's employees or of its headquarters.
• In 2018, the United States Supreme Court has ruled that states may charge sales tax for purchases from out-of-state sellers (including sellers on the internet) however the seller does not have an actual presence in the state that taxes.

Keeping track of and adhering to constantly evolving tax regulations isn't easy. It's the reason SaaS businesses (and those selling digital goods) 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 it has served B2B and B2C companies that sell SaaS Digital products and downloadable software:

Paddle B2C SaaS

Paddle has been serving SaaS firms for around ten years. Paddle's platform works better to B2C companies, however, they're currently working on adding more features that are suitable for B2B businesses, like automated invoicing.

If the addition of B2B services are in the near future, these capabilities might be available by the time you need these features. If you're currently offering B2B-specific products then you might want look at a different option that has B2B functions that are fully functional ('s Digital Invoicing tool for B2B is in operation for a number of years).

Then, we will look at Stripe against. vs. Paddle, according to certain features.

Functions and feature comparisons

Payment Processing (Payment Methods, Currencies, and More)

Stripe

For Stripe to start accepting payments Stripe, you have to set up each location to use the payment method and currency that you would like to accept at that particular area. After you have set it up, Stripe will automatically convert pricing of the product and present the correct option for payment and currency at checkout.

Stripe supports 135+ currencies.

You'll be able to accept payments from big credit card companies (including MasterCard and Visa) as well as bank transfers, vouchers as well as popular wallets such as Apple Pay and Google Pay. But, they're not able to support PayPal.

Stripe is also able to support transactions in person through the Stripe Terminal as well as mobile SDKs.

makes it simple for SaaS and eCommerce companies to accept payments in most currencies and preferred payment options around the globe. Instead of configuring every one separately, merchants can enable localized payments and accept global payment right away.

However, Stripe automatically converts prices into local currency for you, provides more flexibility:

• You could let your company handle the conversions on your behalf, oryou can decide on a set price per product for each one of the currencies.
• You can let select the right currency for the user based on their location, you can choose one specific currency per region, or you can let the customer select their preferred currency. supports 23+ currencies.

 With it, customers are able to make payment by using:

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

Payouts are more successful rate when the gateway is located in the same place as the purchaser. automatically routes online payments through the payment gateway that has the best authorization rates for that type of payment and its location.

Furthermore, the use of multiple payment gateways solves most problems with failed payments that arise because of network problems. If a payment gateway is experiencing a technical failure, automatically retries the payment using a different gateway -with your staff not having to lift a finger.

Bonus: Sift Partners as Sift

takes the lead on fraud and risk activities (including chargebacks). We work in partnership with Sift which is a world leader in risk analysis and fraud prevention to ensure your transactions safe. Sift utilizes machine learning and AI to:

• Improve the accuracy of fraud-related decisions.
• Increase approval rates, which results in less false positives.
• Beware of bad actors before the transaction has even been completed.

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

Paddle

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

Paddle supports 20+ different currencies, most popular credit cards (including MasterCard, Union Pay and many more) as well as wire transfers and wallets (including Apple Pay, Google Pay, PayPal, and Alipay) however, certain options are still in beta testing.

Calculating and Remitting Sales Tax (VAT, GST) and Sales Tax

Stripe

Stripe purchased TaxJar to assist you in calculating taxes on sales, VAT and GST. But, they provide instructions on enabling tax-related features and giving tax codes. You are responsible for the decisions and implications that result from using these tools (e.g. understanding what your product's classification is under tax law and if/where there is a nexus and you need to register, collect the, file and pay consumption tax). If you're interested in knowing how to optimize tax rates, qualify for reduced tax rates, or related tax issue You'll probably be advised to talk to your tax adviser or read through the help articles.

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

Additionally, paying sales tax can be more complicated than just filling out a sheet and writing out a cheque. In the last few years, more and more nations are imposing more requirements to stay compliant. For example:

• Countries such as Colombia, Japan, Mexico, Serbia, and others are governed by local representation, meaning you have an employee with an actual presence in the country in order to pay the tax liabilities. This can cost anywhere from $5k-$15k each year.
• Some countries like India, Indonesia, Japan as well as others need your account to be "pre-funded" meaning you have to predict the tax amount you will owe and keep funds in your account until you are ready to make a tax filing (up to three months prior to filing).
• Countries such as Serbia, United Kingdom, Taiwan as well as others need electronic invoices (it is applicable to companies that are not resident as well). The typical cost for companies is $2k to $5k per year. Notice: E-invoicing mandates are growing at a rapid rate and the EU rolling out all-encompassing electronic invoice requirements before 2028.
• Countries like Taiwan, Indonesia, Nigeria, Vietnam, and others require you to submit tax returns on income in addition to indirect tax (this can add up to $5-$10k each year).

Additionally, wiring international tax payments isn't effortless or inexpensive. The banks that process the tax payments and those who receive them each charge fees, and then there's an additional risk associated when dealing with transactions that are foreign.

Therefore, although Stripe has taken a major step towards helping you collect sales tax by purchasing TaxJar, they're a long way from providing an end-to-end solution for sales tax and international tax.

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

With over 20 years of experience filing 1,200+ annual tax returns Our team makes sure an accurate amount (and kind) in indirect taxes collection during checkout. We even handle tax-exempt transactions in the U.S. and 0% reverse charge when permitted internationally.

The tax collection agency files taxes and records them in over 52 nations, 13 provinces as well as all the 45 U.S. states that collect sales tax (five states don't collect any taxes on sales).

Our team then pays these taxes for you, and will ensure that the proper procedures are in place in order to ensure compliance. If a country or state asks you to comply with tax laws the team from our firm will guide you on how to respond to them, even going as far as copy and paste responses.

We establish and maintain connections with tax professionals around the globe to ensure that we're aware of tax laws and regulations as they evolve.

Bonus: Custom Tax Codes

Tools like TaxJar, Avalara, and other tax software supply the tax code for most products and services. But, the majority of companies ultimately want to provide services or products that isn't in the definition of one of the tax codes offered (e.g., having an event in person with participants and speakers who are virtual). If you use a program like TaxJar it will be your own to figure out and calculate the appropriate amount and kind of indirect tax since they won't have a tax code for your unique situation.

This isn't an issue for sellers as we've recently rolled out a feature that allows us to build unique product tax codes customized by use case -- within minutes. Simply tell us about the product or service you offer and we will create tax codes for you.

Paddle

Similar to Paddle , Paddle takes the lead in collecting and remitting sales tax, VAT, as well as GST, for you. Contrary to the other , Paddle doesn't support tax exempt cases within the U.S.

Checkout

Stripe

Stripe Checkout is a pre-built payment site that can be used across any device. There are a variety of options for customization (e.g. the font blocks, shapes and colors, etc.) but it's pretty limited. Stripe will automatically translate Checkout to the right the language (35+ options) depending on the customer's area of.

allows you to customize each aspect of your checkout, with custom fields, to custom colours. You also have the flexibility to select whether to grant your developer total control over the checkout process or let them the system manage it on your behalf (or somewhere within the middle).

Here's a summary of's check-out options:

• Three versions: You have the possibility of embedding checkout directly on your webpage, utilize a popup checkout or redirect your clients to an Web Storefront managed by .

• Store Builder Library (SBL):  The SBL provides you with complete control over the look and experience of your checkout right up to the last pixelregardless of the checkout method you select.
• Localized Checkout:Let customers choose their preferred language, or let them select the right language based on the buyer's location. supports 19and more languages.
• Built-in tracking and testing tools: With 's built-in tracking tools, you are able to easily identify ways to improve conversion rates. Most companies that use this method are able boost their conversion rate by 30% or more.
• Personalized customer supportAlthough we offer you total control of your shopping cart and payment options, our support team is there to provide you with the best checkout experience for your company. Some companies only provide individual support to their most important customers and do not provide any support for small companies. We don't have the game of a few. Our team is ready to help in any way that they are able to.

Paddle

Paddle offers two different versions of the checkout process:

• It is embedded on your site
• Popup overlay

With these two formats you can choose from 50 different options to customize. Paddle can support 16 languages, and automatically translates your checkout.

Subscription Management

Stripe

Stripe Billing includes a few distinct subscription options

• Flat-rate billing (for an annual or monthly price) annual fee)
• Multi-price billing (where a single item is offered at different rates in various locations)
• Per seat billing (based on the number of active users during the billing cycle)
• Usage-based bill (single unit or tiered)
• Flat-rate and overage (a blend of usage-based and flat-rate billing)

This option is suitable for firms that are only using a few simple subscription-based products However, businesses with more complex recurring billing needs (e.g., SaaS) generally require an additional tool. For this reason, Stripe has developed a close relationship with Chargebee to make it easier for customers to access the subscription billing software they need. While it's easy to combine these two apps however, you'll need be able to manage and purchase both of them separately.

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

It offers an array of management tools for subscriptions designed specifically designed for SaaS businesses.

Plus, most of these options can be set up without having to write any code. For example, you can configure:

• Automatic weekly, monthly, or yearly recurring billing.
• The prorated bill allows for upgrades -- and downgrades in mid-cycle.
• Trials for free or paid for any duration.
• Trials with or without collecting the payment information (by not collecting payment details, you're reducing friction at check-out, which usually leads to better conversion rates).
• Automatic or manual renewal.
• Cross-sells, upsells, once-off add-ons, and discounts.
• And there's and more...

Additionally, you will have access to our API and webhooks library for further customisation options.

 The most important thing that goes unnoticed is whether or not the recurring billing model follows local transaction laws and regulations.

In particular For instance, for instance, the Reserve Bank of India (RBI) is a strict regulator for recurring payments. As of the date of this article this article, the RBI limit automatic recurring payment to the amount of Rs15,000 (approximately one hundred dollars). If the amount of a transaction is greater than this amount, the client has to approve the transaction in person. You also have to submit an official directive to the RBI that outlines the procedures you need to follow to make sure you are in compliance. If you fail to make a formal mandate application or have customers manually approve large transactions, you'll be liable to severe penalties or even be banned from selling products to consumers in India.

While some subscription management tools are able to release updates for community members whenever they learn about new regulations However, you're ultimately responsible for keeping track of the laws and regulations. If you fail to adhere to the rules, you may face penalties or even be barred from doing business in that jurisdiction. Most companies need additional headcount to manage this.

 Customers don't need to be concerned about it because we will 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 on how to stay compliant -- all at no additional cost.

Bonus: Digital Invoicing

's Digital Invoicing (DI) lets you manage B2B orders in conjunction with B2C purchases. With DI, you can:

• Customize and manage quotes that are updated in real-time (including custom tags coupons, discounts and many more).
• Set quote expiration dates.
• Request and accept the payment.
• Create custom notes to your customer/prospect.
• Offer a quote that is self-service (this is particularly useful when the customers require approval prior to buying).
• Plus much plus.

Paddle

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

• Fixed
• Tiered
• Per-seat
• Metered

Furthermore, certain options are able to be mixed. As an example, you can have a tiered product that allows each tier the use of a number of seats.

Paddle supports free or paid trials, however, clients will have to supply payment information in order to start the trial. Paddle also automatically applies an amount prorated when customers upgrade their plan mid-cycle (e.g. or add new users or make an upgrade).

Analytics and Reporting

Stripe

Stripe has a variety of revenue recognition tools to simplify your accounting processes, including:

• Basic accounting reports including balance sheets or income statement.
• Revenue rules that can be configured like excluding passing through fees or auto-adjusting the recognition schedules.
• Revenue overview reports.
• And more...

The reports are all accessible within the Stripe dashboard and some reports are available to download in CSV files. CSV file. Additionally, you can integrate it with popular accounting tools such as QuickBooks Desktop and Xero. However, the ability to import data from revenue recognition companies to Stripe is still in beta.

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

• What each product does to the bottom line of your business.
• Customers are more likely to abandon.
• What promotions or coupons have been successful.
• Which subscription models generate the highest amount of revenues.
• Your customers' locations.
• What currencies and payment methods clients prefer.
• And many and more...

A majority of this data can be found on either of the dashboards that include both the revenue overview dashboard or the subscription overview dashboard.

The dashboard for revenue overview contains more general information such as total transactions by country, as well as net sales per product.

The dashboard of subscription overview lets you drill down into more specific details such as active customers, or monthly recurring revenue (MRR) in the course of time.

If you can't find exactly the report you're looking for in these dashboards, you can build and save your own reports. Or, you can get in touch with our team and we'll assist you in finding (or make) the report that you want. The report you want to view can be displayed on your dashboard, or downloaded in a CSV or PNG file, or XLSX file.

Paddle

Paddle recently acquired ProfitWell in order to provide the ability to report and analyze data. But, the integration isn't fully completed, and there may be some variances between 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.
• Track user engagement and reduce churn.
• Provide benchmarking and segmentation tools.
• Plus...

Pricing

Stripe

Being a platform for DIY Pricing on Stripe operates differently than or Paddle. With Stripe, you'll need pay for extra tools and staff to handle different aspects of your billing process, such as security measures for fraud and subscription management, as well as remitting VAT and sales tax, and more.

Stripe also currently prices card and wallets in a different way in comparison to other payment options including ACH or SEPA.

For all these payment options will allow you access to some of their features, but not all of them. Like, for instance, Stripe charges additional fees for transactions that are 3D secure, invoicing, tax features, and more.

To find out more about Stripe, visit their site.

With , you'll have all access to all of the platform (and all services) at a flat rate. Since we take on all responsibility for your transactions and also take charge of sales tax and VAT You won't require any additional software or staffing.

Our team will work together with you to come up with an affordable price dependent on the amount of transactions you move through . Plus, you'll only be charged for transactions that take place.

Paddle

Paddle advertises a flat-rate fee for their main product, which comprises the majority of options you'll require -payment processing payment, check-out, subscriptions worldwide fiscal and regulatory compliance fraud prevention and reporting, among others -- but it doesn't include everything.

As an example, Paddle collects a 10% fee to reclaim abandoned carts.

For more information about Paddle, visit their site.

Customer Reviews

Stripe

Stripe currently has 4.4 ratings at G2 (a popular software review site) with more than 82 reviews.

currently , the company has 4.5 rating on G2 with reviews of 184+.

Here's what some of our clients have to say about us:

Paddle

Paddle currently has 4.5 stars on G2 along with over 145 reviews.

Conclusion: vs. Paddle vs. Stripe

If you're selling physical products or services, or services, then Paddle is not the best option, then Stripe the most suitable choice of the three options described in this article. 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 solution (which can be expensive and takes a long time).

It has served SaaS companies for twice as long as Paddle and offers greater capabilities and features. Also, it is better equipped to assist B2B businesses.