The core difference
Stripe is a payment processor: it moves money, you handle taxes, invoicing, refunds, and compliance. Paddle is a merchant of record: Paddle is legally the seller, so it handles global VAT, sales tax, chargebacks, and fraud — at a higher fee.
When Paddle wins
- You sell to customers in 20+ countries and don't want to register for VAT in each.
- You're a solo founder or small team without a tax accountant.
- You want chargebacks and fraud handled for you.
- Your product is digital (software, SaaS, ebooks) — Paddle's sweet spot.
When Stripe wins
- You sell primarily in one country or one tax jurisdiction.
- You have or can hire tax/compliance support.
- You need deep payment customization (custom checkout, complex pricing, marketplaces).
- You want lower per-transaction fees.
Fee comparison (2026)
- Stripe: ~2.9% + $0.30 per transaction (US). You pay tax remittance separately.
- Paddle: 5% + $0.50 per transaction. All tax, compliance, and chargebacks included.
On a $20/mo SaaS, Stripe nets ~$19.12, Paddle nets ~$18.50. The 60-cent delta buys global tax handling — usually worth it under $1M ARR.
Implementation effort
Both ship with hosted checkout pages and webhook-based subscription lifecycles. Paddle's catalog is simpler (products + prices, no separate tax setup). Stripe's API surface is bigger but deeper.
Our recommendation
For a new SaaS shipping internationally with a small team: Paddle. For a marketplace, a US-only product, or anything needing custom payment flows: Stripe. SEO Smart Engine itself runs on Paddle for exactly this reason.