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About Paddle
What Does Paddle Do?
Paddle is a Merchant of Record (MoR) platform that simplifies global selling for digital product businesses. It manages payments, subscriptions, sales tax compliance, and regulatory requirements across 300+ markets, so you don't have to register for tax in every country yourself.
Who Is It For?
Paddle is built for SaaS companies, mobile app developers, and digital product businesses that want to scale internationally without adding operational complexity. It is ideal for subscription-based businesses that need recurring billing, localized checkout, and automated tax handling. It is not designed for physical goods or one-off payments under $10 without custom pricing.
Real Use Cases
Companies like Renderforest used Paddle to achieve 3X ARR growth and a 60% reduction in refunds. MacPaw tripled revenue while switching to SaaS. Kaleido launched and scaled globally with 20% month-over-month customer growth. Paddle processed 190 million transactions and remitted $130 million in sales taxes last year.
Key Products
Beyond core payments, Paddle offers ProfitWell Metrics for real-time revenue analytics and Retain for automatic failed payment recovery and churn reduction. All products are integrated under one platform with 24/7 customer support and a 93% CSAT score.
Key features
- Merchant of Record — Paddle becomes the seller of record, handling tax registration, filing, and remittance globally so you stay compliant without extra overhead.
- Global Checkout — Localized payment pages support 300+ markets, 100+ currencies, and multiple payment methods to maximize conversion.
- Subscription & Billing — Fully managed recurring billing, invoicing, dunning, and proration for SaaS and subscription products.
- Tax Compliance — Automated sales tax, VAT, and GST calculation, collection, and remittance across jurisdictions.
- Fraud Protection & Chargeback Coverage — Built-in fraud screening and chargeback liability protection included at no extra cost.
- Revenue Recovery (Retain) — Smart retry logic and cancellation flow optimization to recover failed payments and reduce involuntary churn.
- Analytics (ProfitWell Metrics) — Real-time dashboards showing MRR, churn, LTV, and cohort trends to understand revenue drivers.
Paddle Pricing
Paddle pricing: 5% + 50¢ per Checkout transaction.
Pay-as-you-go
5% + 50¢ per Checkout transaction. Includes: global payments and billing, cross-border sales tax compliance, fraud and chargeback protection, subscription management, and 24/7 support. No migration fees, monthly fees, or hidden extras.
Custom Pricing
Tailored pricing for rapidly scaling and established large-scale businesses. Includes access to optional premium services, success management, and custom migration support. Book a demo for a quote.
Note: If you sell products under $10 or require invoicing, contact Paddle for custom pricing. No free plan is offered, but a demo is available to evaluate the platform.
Frequently asked questions
How much does Paddle cost?
Paddle's standard pay-as-you-go pricing is 5% + 50¢ per Checkout transaction. Custom pricing is available for scaling and enterprise businesses. There are no monthly fees, setup fees, or hidden costs.
Is there a free trial or free plan for Paddle?
Paddle does not offer a free plan or free trial. You can book a demo to see the platform in action and get a customized assessment for your business.
What is a Merchant of Record and why does Paddle act as one?
A Merchant of Record (MoR) is the entity legally responsible for processing payments, handling tax compliance, and managing chargebacks. Paddle acts as the MoR so you don't have to register for sales tax in every country or deal with local regulations.
Who is Paddle best for?
Paddle is best for SaaS companies, mobile app developers, and digital product businesses that sell subscriptions or one-time digital products globally. It's especially useful for teams that want to avoid the operational burden of international tax compliance.
What are the top alternatives to Paddle?
Top alternatives include Stripe (with tax and billing add-ons), Chargebee, Recurly, and Lemon Squeezy. Paddle differentiates by acting as the full Merchant of Record, taking on tax liability and compliance.
Does Paddle support mobile app subscriptions?
Yes, Paddle is built for SaaS and mobile app businesses. It supports in-app purchases and recurring subscriptions with localized checkout and compliance for app store requirements.
