Stripe vs Paddle: who handles your SaaS billing
Choose Paddle if you sell software or digital subscriptions across many countries and never want to file VAT abroad: as merchant of record it sells to your customers, then collects and pays EU VAT on digital products for you. Choose Stripe if you want full control of checkout and billing and can handle tax yourself. Stripe Tax tracks the €10,000 EU threshold and charges the right rate, but you still file the OSS return. That tax work is the real price difference.
Which one to pick
Stripe is the better pick for a developer-led product, a membership or a business selling physical and digital goods that wants a flexible API, no monthly fee and is happy to file its own OSS return.
Paddle is the better pick for a SaaS or software founder selling worldwide who wants VAT and sales tax collected and paid on their behalf, without registering for tax in each country.
Side by side
Questions
Is Stripe or Paddle cheaper for subscriptions?
Stripe has no monthly fee: you pay per successful transaction. Our data has no confirmed price for Paddle, so check its current rate on the Paddle site. Paddle's fee covers more, because it also files and pays EU VAT for you, so add your accountant's OSS costs to Stripe's side before comparing.
Can I start for free on either?
Stripe costs nothing until you take a payment, which makes it easy to set up and test. Paddle has no free plan in our data and fits businesses ready to sell. On both, you pay when money comes in rather than a fixed subscription.
How do I move subscriptions from Stripe to Paddle?
Moving live subscriptions means moving saved payment details, which you have to arrange with both providers. Paddle has to become the seller on your invoices from the switch date. Plan a cut-off, tell customers in advance and keep Stripe running until the last old renewal clears.
Which suits a solo founder and which a growing team?
Stripe fits anyone from a solo developer to a large company, and its API rewards a technical founder. Paddle is aimed at small to large teams selling software, and it removes the tax admin a solo founder would otherwise carry. If you code and sell in one country, Stripe is simpler. If you sell into dozens, Paddle saves the most.
Do they handle e-invoicing in Spain, Germany or Italy?
Stripe Invoicing does not create XRechnung or ZUGFeRD itself, and for Italy and Spain's VeriFactu it relies on partner apps. Paddle acts as the seller to your customers and handles VAT on digital products. For business customers who require e-invoices, check which partner app or Paddle feature covers your country before you launch.