Question 1

What is the best payment processor for SaaS businesses?

Accepted Answer

Stripe is the best choice for most SaaS businesses due to low transaction fees (1.5% + £0.20), powerful subscription billing, best-in-class API, and extensive integrations. However, if you want zero tax compliance overhead, Paddle is worth the higher fees (5%) as they handle ALL global VAT/sales tax as your Merchant of Record.

Question 2

Should I choose Stripe or Paddle for my SaaS?

Accepted Answer

Choose Stripe if you want lower fees (1.5% vs 5%), advanced customization, API flexibility, and are comfortable handling VAT registration yourself. Choose Paddle if you want ZERO tax/VAT compliance work, are a small team without accounting resources, and don't mind Net-30 payouts. Stripe for flexibility and lower costs, Paddle for zero compliance overhead.

Question 3

How do different payment processors handle VAT and sales tax?

Accepted Answer

Paddle (Merchant of Record) handles ALL VAT/sales tax globally - you receive net revenue and they deal with all tax authorities. Stripe provides Stripe Tax that calculates VAT automatically, but YOU are responsible for registering and filing returns. Mollie offers EU-focused VAT calculation, but you handle compliance. PayPal provides basic VAT calculation only.

Question 4

Which payment processor is best for international payments?

Accepted Answer

Stripe leads for international payments with 35+ payment methods globally, 135+ currencies supported, local payment methods, and adaptive pricing by region. Mollie is better if you focus on EU customers, with superior support for European local payment methods like iDEAL, Bancontact, Giropay, and SEPA Direct Debit.

Question 5

How do chargeback fees and protection compare?

Accepted Answer

Stripe charges £15 per chargeback with free Stripe Radar fraud detection. Mollie charges €15 per chargeback with standard fraud detection. PayPal charges €16 per chargeback with built-in seller protection. Paddle includes chargebacks in their 5% fee with no extra charge, plus included fraud protection.

Question 6

How difficult is it to integrate each payment processor?

Accepted Answer

PayPal Business is simplest (30 minutes to live). Paddle offers easy SaaS-focused integration. Mollie has a clean API and straightforward integration. Stripe is most powerful but has a steeper learning curve, though worth it for advanced use cases. All four offer no-code integrations with platforms like Webflow, WordPress, and Shopify.

Question 7

PayPal vs Stripe: which is better for EU businesses?

Accepted Answer

Stripe is better for most EU businesses due to lower fees (1.5% vs 2.9%), better subscription billing, superior API, more reliability, and better accounting integrations. Choose PayPal if customers explicitly request it or you need the PayPal brand trust. Best approach: offer Stripe as primary and PayPal as alternative.

Question 8

What are the benefits of using a Merchant of Record like Paddle?

Accepted Answer

A Merchant of Record like Paddle handles global tax compliance (VAT/sales tax registration, calculation, collection, filing in 200+ countries), reduces your liability, includes fraud protection and chargebacks in fees, and saves massive time without needing an accountant. Trade-offs include higher fees (5% vs 1.5-3%), slower payouts (Net-30), and Paddle owning the customer relationship.

Provider	Stripe Recommended for SaaS	Mollie EU Champion	PayPal Business Ecommerce Standard	Paddle Merchant of Record
Pricing
Monthly Fee	Free Pay-as-you-go pricing	Free No setup or monthly fees	Free Standard tier, advanced plans available	Free MoR service included
Pricing & Fees
Transaction Fee	1.5% + £0.20	1.8% + €0.25	2.9% + €0.35	5% + $0.50
Monthly Fee	£0	€0	€0	$0
Chargeback Fee	£15	€15	€16	Included
Payout Speed	2-7 days	1-2 days	1-3 days*	Net-30 days
Core Features
Subscription Support
VAT Handling	Advanced	EU-focused	Basic	Fully Automated
Payment Methods	35+	25+	15+	20+
Multi-currency Support
Technical & Support
API Quality	Excellent	Very Good	Good	Good
Developer Experience	Best-in-class	Good	Moderate	Good
Fraud Detection	Advanced AI	Standard	Standard	Included
Invoice Management
Summary
Best For	SaaS companies and developers who need flexibility	EU-focused businesses needing local payment methods	Ecommerce stores prioritizing buyer trust and conversion	SaaS startups wanting zero tax/compliance overhead

Payment Processor Comparison 2025

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