Stripe vs Paddle is the most-asked SaaS payments question in 2026. Both handle subscriptions, both support major cards, both have polished checkouts. The real difference is what each takes responsibility for: Stripe is a payment processor (you remain the merchant); Paddle is a merchant of record (Paddle becomes the merchant and handles VAT/GST/sales-tax compliance globally).
When Stripe wins
Stripe wins for US- and Canada-focused SaaS that already has a finance team or tax automation (Avalara, Anrok, TaxJar). Stripe's processing fees are lower (2.9% + 30¢ vs Paddle's 5% + 50¢ for digital goods), the checkout customisation is deeper, and the developer experience is unmatched — you can wire a subscription in 2 hours. Stripe also wins when you want full control over the customer relationship: refunds, disputes, and customer data sit in your account.
When Paddle wins
Paddle wins for global indie SaaS and small teams that don't want to deal with cross-border tax. As merchant of record, Paddle handles VAT in the EU, GST in Australia, sales tax in every US state, and consumer-tax registration in 30+ jurisdictions — automatically. The premium (~2-3 percentage points more in fees) buys you full tax handling, chargeback handling, and the ability to sell anywhere in the world without setting up local entities or tax registrations.
Pricing comparison (2026)
Stripe: 2.9% + 30¢ for cards in US; 3.4% + 30¢ for international. No monthly fee. You pay your own tax obligations.
Paddle: 5% + 50¢ for digital goods. No monthly fee. Tax handling included. Effective rate is higher but tax-automation costs are bundled.
Decision framework
If you're sub-$100K ARR, global, and don't want to think about tax: Paddle. If you're US/Canada-focused, technical, and willing to pay for tax automation separately: Stripe. If you have an existing finance team and value full control over the customer relationship: Stripe. Either choice is reversible (with cost) — most founders who switch go Stripe → Paddle as they hit international scale.