Stripe vs Paddle

Stripe vs Paddle comparison for SaaS developers. Compare pricing, features, tax handling, and developer experience to choose the right payment platform.

🏆

Quick Verdict

Winner: Depends

Stripe offers more control and lower fees at scale, but Paddle handles global tax compliance automatically. For most indie hackers selling globally, Paddle's simplicity wins. For US-focused or high-volume SaaS, Stripe is more cost-effective.

Choose Stripe if...

✓ You're primarily selling to US customers
✓ You need granular control over the checkout experience
✓ You're processing >$50k/month (fees matter more)
✓ You want to own the customer billing relationship
✓ You need marketplace/platform payment features

Choose Paddle if...

✓ You're selling globally and don't want to handle VAT/GST
✓ You want a Merchant of Record (they handle tax remittance)
✓ You're an indie hacker who wants payments solved, not managed
✓ You need built-in license key management
✓ You want simpler accounting (one invoice from Paddle)

Feature-by-Feature Comparison

Category	Stripe	Paddle	Winner
Pricing	2.9% + 30¢ per transaction. Volume discounts available. No monthly fees.	5% + 50¢ per transaction. Higher fees but includes tax handling.	Stripe
Free Tier	No monthly minimums. Pay per transaction only.	No monthly minimums. Pay per transaction only.	Tie
Developer Experience	Excellent SDKs, comprehensive docs, great TypeScript support. Stripe CLI for local testing.	Good SDK, improving docs. Paddle Billing is newer and cleaner than legacy Paddle Classic.	Stripe
Documentation	Industry-leading documentation. Interactive examples, copy-paste code.	Good documentation, improving. Some legacy/new API confusion.	Stripe
Scalability	Powers Shopify, Amazon, Google. Proven at any scale.	Handles large SaaS businesses well. May have payout delays at very high volume.	Stripe
Features	Subscriptions, invoicing, Connect for marketplaces, Radar for fraud, Tax (add-on).	Subscriptions, one-time payments, license keys, built-in tax compliance, dunning.	Tie

Code Comparison

Create a Checkout Session

typescript

import Stripe from 'stripe';

const stripe = new Stripe(process.env.STRIPE_SECRET_KEY);

const session = await stripe.checkout.sessions.create({
  mode: 'subscription',
  line_items: [{
    price: 'price_xxx',
    quantity: 1,
  }],
  success_url: 'https://example.com/success',
  cancel_url: 'https://example.com/cancel',
});

Stripe Checkout handles the payment UI. You redirect users to the hosted page.

Create a Checkout Session

typescript

import { Paddle } from '@paddle/paddle-node-sdk';

const paddle = new Paddle(process.env.PADDLE_API_KEY);

const transaction = await paddle.transactions.create({
  items: [{
    price_id: 'pri_xxx',
    quantity: 1,
  }],
  checkout: {
    url: 'https://example.com/checkout',
  },
});

Paddle's SDK creates transactions. Use Paddle.js overlay or redirect to hosted checkout.

🔄 Migration Notes

Migrating from Stripe to Paddle requires re-creating subscriptions (no direct import). Consider running both in parallel during transition. Paddle provides migration guides for moving customers.

Frequently Asked Questions

Is Paddle more expensive than Stripe? ▼

Paddle charges 5% + 50¢ vs Stripe's 2.9% + 30¢, but Paddle includes sales tax compliance. If you factor in tax software costs ($500-2000/year) and accounting time, Paddle can be cheaper for global SaaS businesses.

Which is better for indie hackers? ▼

Paddle is generally better for indie hackers selling globally because it handles VAT/GST automatically and acts as Merchant of Record. Stripe is better if you're US-focused or want more control.

Can I switch from Stripe to Paddle? ▼

Yes, but it requires migrating subscriptions manually. Paddle doesn't import Stripe subscriptions directly. Plan for a transition period where you run both platforms.

Try Stripe

Financial infrastructure for the internet

Try Paddle

Revenue delivery platform for B2B SaaS

⚖ Compare in Interactive Tool

Last updated: January 11, 2026