Comparison Disclaimer
Pricing and features shown are based on publicly available information. Always verify current pricing on provider websites before making decisions. We receive affiliate commissions from some providers. Information current as of January 2025.
Quick Verdict
Stripe is better if you want full control and lower fees. Paddle is better if you want VAT/sales tax handled automatically and don't want to deal with tax compliance yourself.
- • You want lower processing fees
- • You need full customization
- • You can handle VAT yourself
- • You want hands-off tax compliance
- • You sell globally (B2C)
- • You value simplicity over control
The Fundamental Difference
Stripe: Payment Processor
Stripe processes payments on your behalf. You are the merchant. You handle VAT registration, collection, and remittance. You issue invoices. Stripe just moves the money.
- Lower fees (2.9% + €0.25)
- Full control over checkout
- Direct customer relationship
- You handle all tax compliance
Paddle: Merchant of Record
Paddle sells your product on your behalf. Paddle is the merchant. They handle VAT/sales tax registration, collection, and remittance worldwide. They invoice customers. You receive net payouts.
- VAT/sales tax handled globally
- No tax compliance burden
- One payout, one invoice to you
- Higher fees (5% + €0.50)
Pricing Comparison
| Cost Item | Stripe | Paddle |
|---|---|---|
| Base fee | 2.9% + €0.25 | 5% + €0.50 |
| VAT handling | You handle (Stripe Tax: +0.5%) | Included |
| Invoice generation | You handle | Included |
| Chargeback protection | Optional (+0.4%) | Included |
| Example: €100 sale (EU) | ~€3.15 in fees | ~€5.50 in fees |
| Example: €100/mo × 1000 customers | ~€3,150/mo | ~€5,500/mo |
Paddle's higher fee includes VAT handling, invoicing, and chargeback protection that you'd pay extra for with Stripe.
VAT Handling: The Real Difference
With Stripe (You Handle VAT)
- • Register for VAT in each country (or use OSS)
- • Calculate correct VAT rate per customer location
- • Collect VAT and add to invoices
- • File VAT returns (monthly/quarterly)
- • Remit VAT to tax authorities
- • Keep records for 10+ years
Stripe Tax can calculate VAT automatically (+0.5%), but you still file returns and remit payments yourself.
With Paddle (They Handle VAT)
- • Paddle is registered for VAT globally
- • They calculate and charge correct VAT
- • They invoice your customers
- • They file all VAT returns
- • They remit VAT to authorities
- • You receive net payouts + one invoice from Paddle
Your accounting: One invoice from Paddle for your services. No VAT liability on your side.
Feature Comparison
| Feature | Stripe | Paddle |
|---|---|---|
| Subscription billing | ||
| One-time payments | ||
| Checkout customization | Full | Limited |
| Tax compliance | You handle | |
| Customer invoices | You handle | |
| Chargeback handling | You handle | |
| API quality | Excellent | Good |
| Developer docs | Best in class | Good |
| Payment methods | 100+ | 20+ |
Who Should Choose Which?
Choose Stripe if:
- B2B focus — Selling to businesses (simpler VAT: reverse charge)
- High volume — Fee difference adds up significantly
- Custom checkout — Need full control over payment UX
- In-house expertise — You have accounting/finance team
Choose Paddle if:
- B2C focus — Selling to consumers globally (complex VAT)
- Solo founder — Don't want tax compliance burden
- Global sales — Selling in many countries
- Simplicity — Value time over lower fees
Frequently Asked Questions
Common questions about Stripe vs Paddle
All information verified as of December 2025. Prices and features subject to change. Always verify current pricing with providers.
