An in-depth comparison of Stripe as compared to. Paddle vs.

For help in deciding between Stripe and. Paddle vs. , this guide will help you compare:

• What areas of the lifecycle of payments every one of them has a solution to (e.g. the processing of payments collecting and remitting tax and managing subscriptions) and which additional programs you'll need to add to your tech stack.
• What companies and industries each serves.

In the next section, we present an in-depth comparison of the most important features such as checkout and reporting. We also provide customer reviews and case studies for each solution.

In short, Stripe primarily deals with processing payments, while and Paddle manage payment processing, subscription management including tax collection and tax remitting, fraud protection, and many more with no the need for additional software.

 Table of Contents

•   What aspects of the life cycle of payments are you able to control and what additional software are you going to require to have a comprehensive payment solution?
•   What kinds of companies and what industries are able to use each platform?
•   Comparison of features and functionalities
•     Process Payment
•     Remitting and calculation of sales tax, VAT and GST
•     Checkout
•     Subscription Management
•     Reporting and Analytics
•   Pricing
•   Customer Review

NOTE: Information in this article is accurate at the time of writing but is subject to change.

Which areas of the payment lifecycle will you be able to control and what additional software will you need for a comprehensive payment solution?

Stripe Paye: Payment Processing

Stripe is most famous for its payment processing capabilities, so they can help you gather information about payments and have them accepted. They also provide basic services to manage your subscription including fraud detection, invoicing as well as other features.

These extra features may meet the requirements of some startups, but most companies end up needing more robust options. Eventually, you'll need additional software that can handle complex recurring billing needs, accept various payment options across the globe, or even create an individual checkout procedure. The good news is that many developers can easily integrate Stripe with most other software (however you must be able to pay for each program separately).

Most companies using Stripe require additional employees to handle sales tax (and VAT) and compliance with regulatory requirements. Even though Stripe takes taxes on sales and VAT for you, you'll be responsible to pay it. If you remit tax in the wrong quantity, in the wrong moment, or with the incorrect method it could result in penalty and financial losses. (More about this in the future. )

In addition, you'll have to be accountable to be up-to-date as well as observing local regulations and laws in the area where you have customers. It's a big undertaking for any company which is the reason why many companies devote an entire section to the task.

The Whole Payment Lifecycle

• Many payment processors (which increases authorization rates and allows you to conduct transactions globally).
• Flexible subscription management and recurring billing tools.
• B2B Digital Invoicing.
• Advanced methods of fraud detection.
• Flexible check out (down to the pixel).
• Detailed reports and analytics.
• And much more.

It will be possible to control every aspect of the process of payment from the account without the need for additional programs or heads.

Paddle: The Majority of the lifecycle of a payment

Paddle offers options for processing payments, subscription management, and fraud detection, and has more features than Stripe's offerings. However, some of Paddle's features are less robust than  Stripe's capabilities. In particular, the checkout is more customizable as are the checkout options on Paddle's (more on this later).

If Paddle does not provide the features that you require, you might need to add additional software or move to a different service.

Like , Paddle is a MoR.

What Types of Businesses and which industries can benefit from Each Platform?

With Stripe, You Can: Nearly Any Business

It is a great choice for almost any kind of company in almost any field. However, SaaS companies will inevitably face some difficulties while using Stripe.

We've mentioned before that the companies that use Stripe are entirely responsible for paying sales tax and VAT. The old rule was that SaaS businesses didn't need to pay taxes on sales or VAT but many states and countries are coming up with (and insisting on enforce) law changes that force SaaS businesses to pay sales tax or VAT.

Two examples are provided:

• On January 1, 2015 The European Union began requiring software sellers to collect and refund VAT according to the location of the buyer -- not the location of the company's employees or of its headquarters.
• In 2018 it was the year that The United States Supreme Court ruled that states are allowed to charge sales tax on purchases from out-of-state sellers (including online sellers) however the seller is not located in a physical presence in the state that taxes.

Being aware of and adhering to constantly evolving tax regulations isn't an easy task. It's the reason SaaS businesses (and companies selling any digital product) prefer an option that can handle remitting sales tax and VAT on your behalf.

: B2C and B2B SaaS or Digital Goods Companies

For more than 20 years, has been serving B2B and B2C companies that sell SaaS Digital products and downloadable software:

Paddle: B2C SaaS

Paddle is serving SaaS businesses for about 10 years. Paddle's platform is better suited for B2C firms, however, they're working to add more features that are suitable for B2B businesses, like automated billing.

If adding B2B features is planned for the near future, these capabilities may be established at the point you'll need these features. However, if you're already selling products that are B2B-related then you might want to look into a different solution that comes with fully operational B2B capabilities ('s Digital Invoicing tool that is B2B-specific has been in operation for a number of years).

Then, we will examine Stripe against. and. Paddle, according to certain features.

Features and Functionality Comparisons

Process Payments (Payment methods, currencies, and More)

Stripe

To start processing payments with Stripe, you have to configure each location with the appropriate currency and payment options you wish to provide in that area. Once you've set this to go live, Stripe will automatically convert pricing of the product and present the appropriate option for payment and currency at the time of checkout.

Stripe supports 135+ currencies.

It will be possible to accept payments from major credit card networks (including MasterCard and Visa) as well as bank transfers, vouchers as well as popular wallets such as Apple Pay and Google Pay. However, they don't support PayPal.

Stripe also supports in-person transactions through the Stripe Terminal and mobile SDKs.

It makes it easy to SaaS as well as e-commerce businesses to accept transactions in all types of currencies and popular payments methods across the globe. Instead of configuring each one individually, sellers can simply switch on localized payment and start accepting global payments right away.

While Stripe automatically converts the price 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 for each of your products for each currency.
• The user can choose the appropriate currency based on the user's place of residence. You can also select one specific currency per area, or you can let the customer select their preferred currency. supports 23+ currencies.

 With it, customers are able to make payment using:

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

Payments have a higher success rate when the payment gateway is located in the same place as the purchaser. automatically routes online payments through the gateway with the highest authorization rates for that type of payment and its location.

Additionally, having multiple payment gateways solves most problems with failed payments that arise due to network errors. When a gateway for payment is experiencing a technical failure, automatically retries the payment by using another gateway- without your team having move a finger.

Bonus: Partners with Sift

is the leader in fraud and risk activities (including chargesbacks). We work with Sift the world's leader in risk analysis and fraud prevention to ensure your transaction secure. Sift employs artificial intelligence and machine learning to:

• Increase accuracy in fraud decisions.
• Increase approval rates, which results in less false positives.
• Beware of bad actors before a transaction is even processed.

also blocks transactions from the countries and regions where businesses cannot currently do business.

Paddle

Paddle additionally uses multiple payment processors, allowing companies to accept international payments without any set-up.

Paddle is compatible with 20 different currencies, most 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 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 sales tax, VAT, and GST. They only offer instructions for enabling taxes features as well as assigning tax codes. The user is responsible for all decisions and implications of using those tools (e.g., knowing the classification of your product according to tax law, and knowing if and where you are nexus-related, you must to be registered, collect, file, and submit the consumption tax). If you're unsure about ways to reduce tax burdens, qualify for reduced tax rates, or have any related tax issue it is likely that you will be instructed to speak with your tax professional or go through the assistance documents.

 If you accidentally made a mistake in setting it up and you pay the incorrect amount (or the wrong type) or tax amount, you'll be accountable.

Plus, remitting sales taxes can be more complicated than just filling out a spreadsheet and writing a check. As the years progress, nations are imposing additional conditions for compliance. For example:

• Countries like Colombia, Japan, Mexico, Serbia, and others need the presence of a local representative, meaning you have employ someone who has an actual presence in the nation to take care of your tax obligations. This can cost anywhere between $5k and $15k annually.
• Countries such as India, Indonesia, Japan and many more require the account to be "pre-funded" meaning you must determine the tax amount you will owe and keep the money until it's time to make a tax filing (up to three months in advance).
• Countries such as Serbia, United Kingdom, Taiwan and many others have electronic invoicing (it applies for non-resident businesses, too). The typical cost for companies is $2k to $5k annually. Note: E-invoicing mandates are rising at an alarming pace as the EU outlining all-encompassing electronic invoice requirements before 2028..
• Countries like Taiwan, Indonesia, Nigeria, Vietnam, and others are requiring you to file tax returns on income as well as to indirect taxes (this can be as high as $5-10k annually).

In the end, sending international tax payments isn't effortless or inexpensive. Banks that receive and corresponding are both charged fees. There's also the additional risk involved when dealing with transactions that are foreign.

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

handles the entire process for collecting and processing sales tax, VAT and GST to you .

Over 20 years of working experience in the filing of more than 1,200 tax returns every year Our team makes sure an accurate amount (and the correct type) in indirect taxes are collected during checkout. We can even manage tax-free transactions in the U.S. and 0% reverse charges when they are allowed in international transactions.

Files and collects tax in over 52 nations, 13 provinces as well as all the 45 U.S. states that collect sales tax (five states do not collect taxes on sales).

Our team then pays the taxes on your behalf and makes sure that all necessary processes are in place to stay compliant. If a country or state asks you to comply with tax laws Our team can advise on the appropriate response in the same way as copy and paste responses.

We maintain and build relationships with tax professionals around the world to make sure we're informed of new laws and regulations as they alter.

Bonus: Tax Codes Customized

Tools like TaxJar, Avalara, and other tax software supply you with tax codes for the majority of products and services. However, most companies will eventually want to offer a product or service that doesn't fit neatly into the descriptions of the tax codes offered (e.g. the possibility of having an event in person with online attendees and speakers). With a tool such as TaxJar it will be your own to calculate and pay the correct amount and kind of indirect tax since there isn't the appropriate tax code for your unique situation.

The issue isn't a concern for sellers as we've recently introduced a new function that lets us create unique tax codes for products tailored to the specific use case- within moments. Simply tell us about your product or service and we'll generate the tax code for you.

Paddle

As with other companies , Paddle takes the lead on gathering and remitting the sales tax, VAT, and GST for customers. Unlike , Paddle doesn't support tax exempted situations within the U.S.

Checkout

Stripe

Stripe Checkout can be described as a pre-built payment page designed for use on any device. There are a variety of possibilities for customizing (e.g. the font, block forms, colors and more.) but it's pretty limited. Stripe will automatically translate Checkout to the appropriate local language (35+ choices) depending on the customer's area of.

You can customize all aspects of your checkout experience, including custom fields and colours. There's also the option to select whether to grant your developer total control of checkout, or allow them to handle it all for you (or something in between).

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

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

• Store Builder Library (SBL):  The SBL gives you complete control over the look and feel of your check-out down to the pixel -regardless of the checkout option you choose.
• localized checkout:Let customers choose their preferred language or pick the most appropriate language based on the buyer's geographical location. Supports 19plus languages.
• Tracking and testing tools: With 's built-in tracking tools, you will be able to find ways to boost the rate of conversion. Most companies that use this method are able boost their conversion rate by 30percent or more.
• Personalized customer support:Although we give you complete control over the checkout process, our team is always ready to assist you in creating the best checkout experience for your business. Many companies offer 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 staff is happy to be of assistance in whatever way they can.

Paddle

Paddle offers two different versions of payment options:

• Included on your website
• Popup overlay

Within these two formats, they offer 50+ options for customization. Paddle supports 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)
• Billing for multiple prices (where the same product is sold for different price in different places)
• Per seat billing (based on active customers during the billing cycle)
• Usage-based charging (single unit, or tiered)
• Flat-rate + overage (a mixture of usage-based and flat-rate billing)

This option is suitable for companies that only have just a handful of subscription-based services However, businesses with more complicated recurring billing requirements (e.g., SaaS) generally require an additional tool. To this end, Stripe has developed a closely-knit partnership with Chargebee in order to make it simpler for customers to obtain the tools for subscription billing they require. It's not difficult to connect these two services, you will have to manage and pay for each separately.

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

offers a variety of options for managing subscriptions that are designed specifically to be used by SaaS firms.

Additionally, the majority of these options are able to be setup without writing any code. You can, for instance, create:

• Automated weekly, monthly or even yearly recurring bill.
• Prorated billing to accommodate changes -- as well as downgrades in during the mid-cycle.
• Trials for free or paid that are of any length.
• Trials with or without collecting the payment information (by not collecting payment details you'll reduce friction during the checkout point, leading to better percentages of sales).
• Manual or automatic renewal.
• Upsells, cross-sells, one-time discount, add-ons.
• And there's More...

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

 A major aspect that frequently gets overlooked is whether or not the regular billing system is in line with local regulations and laws governing transactions.

For example For instance, it is the case that the Reserve Bank of India (RBI) has very specific regulations for recurring payments. At the time of writing the RBI restricts automatic recurring payments to the amount of Rs15,000 (approximately 170 dollars). If a payment is over the limit, the recipient must approve each transaction manually. You also have to file an official mandate with the RBI that outlines the procedures that you must follow to make sure you are in compliance. If you don't submit a mandate, or you allow customers to manually approve big transactions, you could face heavy fines or be prevented from selling your products to clients from India.

Though some subscription management software provide community updates when they are informed of new rules However, you're ultimately responsible for keeping track the applicable laws and regulations. If you fail to adhere to the rules, you may face fines or be banned from doing business in that region. Many companies require additional staff in order to handle this.

 Customers don't need to be concerned about this since we'll accept the transaction responsibility on behalf of our customers.

Our team of experts in legal matters keeps up-to-date with all relevant legalities, ensures the necessary procedures are in place, take the initiative in audits and provides individual advice regarding how to remain in compliance -- and all this at no additional cost.

Bonus: Digital Invoicing

's Digital Invoicing (DI) lets you manage B2B orders alongside B2C purchases. Through DI, you are able to:

• Create and manage custom quotes that are updated in real-time (including customized tags coupons, discounts, and many more).
• Set quote expiration dates.
• Accept and request the payment.
• Make notes that are specific to your prospective customer or prospect.
• Create a widget for self-service quotes (this is especially useful when clients require approval prior to purchasing).
• And much and more.

Paddle

Through a variety of webhooks and their API, Paddle supports the following subscription model:

• Fixed
• Tiered
• Per-seat
• Metered

Furthermore, certain choices are able to be blended. As an example, you can make a tiered design where each tier allows for a different amount of seats.

Paddle allows free or paid trials. However, users will need to supply payment information prior to starting the trial. Paddle additionally automatically adjusts the prorated amount when users change their plan during the course of their trial (e.g., add new users or make an upgrade).

Reporting and Analytics

Stripe

Stripe has a variety of tools for revenue recognition to assist you in reducing your expenses, including:

• Accounting reports that are standard, like balance sheets, or income statement.
• Revenue rules that can be configured like excluding the passthrough fee and setting auto-adjusting time-to-receive.
• Reports on the revenue overview.
• And more...

Reports can be reviewed on your Stripe dashboard. Some reports can be downloaded in an CSV file. It is also possible to integrate with accounting software like QuickBooks Desktop and Xero. However, the ability to import data from other revenue recognition providers into Stripe is in the early stages of testing.

Data and Analytics Reporting is a powerful tool that can help you comprehend:

• How each product contributes to your bottom line.
• Customers are more likely to leave.
• What promotions or coupons have been successful.
• Which subscription model generates the most revenues.
• Where your customers are located.
• Which payment options and currencies do consumers prefer.
• and many and more...

A majority of this data can be found in one of two dashboards that include the Revenue overview dashboard as well as 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 dashboard for subscriptions allows you to drill to more specific information such as active customers, or monthly recurring revenue (MRR) in the course of time.

If you aren't able to find exactly the report you're looking for in these dashboards, you could build and save your own reports. Or, you can contact us and we'll help you find (or make) the report you require. Any report can be viewed through your dashboard or downloaded as the CSV, PNG or XLSX.

Paddle

Paddle has recently purchased ProfitWell for the purpose of providing the ability to report and analyze data. However, the integration isn't complete, so there could be some differences between platforms. In particular, they will show different MRR.

Once fully integrated, Paddle will be able to:

• Automatically monitor and provide reports on important performance indicators such as MRR.
• Check user engagement, churn and.
• Offer benchmarking tools and segmentation techniques.
• and more...

Pricing

Stripe

A DIY-oriented platform Pricing on Stripe operates different than Paddle's. With Stripe, you'll need to purchase additional 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 such as ACH as well as SEPA.

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

To learn more regarding Stripe, visit their site.

With , you'll have all access to all of the platform (and the entire range of services) with a single flat-rate cost. Because we assume all responsibility for your transactions and lead the charge on sales tax and VAT You won't require any additional software or additional staff.

Our team works in partnership with you to determine an affordable price based on the volume of transactions you move through . Plus, you'll only be charged for transactions that are completed.

Paddle

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

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

For more information about Paddle, visit their website.

Customer Reviews

Stripe

Stripe is currently 4.4 stars in G2 (a famous software review site) with more than 82 reviews.

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

This is what a few of our customers said about us:

Paddle

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

Conclusion: vs. Paddle vs. Stripe

When you're offering physical items or services, and Paddle are not the best option, then Stripe the ideal choice of three choices discussed in this article. If you are selling digital goods, Stripe may not be the most suitable option as you'll be on your own to build out a complete payment platform (which costs a lot of time and money).

has been serving SaaS businesses for twice as long as Paddle and offers more features and capabilities. is also better prepared to assist B2B businesses.