The internet's default answer is "yes, obviously" — written mostly by MoR vendors. The honest answer takes two questions.
There are only two real reasons:
Reason A — "I don't want to touch tax and compliance, anywhere, ever." Legitimate. An MoR is the legal seller and files VAT/GST for you. If you sell globally at volume and this is your top priority — an MoR earns its fee. That's the honest case for it.
Reason B — "I can't get a merchant account: I have no company / approval takes weeks." This was the truth that made MoR the default advice for indie hackers and AI builders. It's obsolete. Progressive-KYB onboarding (what paas.build does) opens a real merchant account the same session — individuals and sole traders included, no company formation, live with a cap while verification completes in the background. If Reason B is your reason, you don't need an MoR. You needed 2026 to arrive.
| On a… | Paddle / Lemon Squeezy (5% + $0.50) | Effective rate | paas.build (3.9% flat) | Effective rate |
|---|---|---|---|---|
| $9 subscription | $0.95 | 10.6% | $0.35 | 3.9% |
| $29 subscription | $1.95 | 6.7% | $1.13 | 3.9% |
| $99 purchase | $5.45 | 5.5% | $3.86 | 3.9% |
| 100 × $9 subs, one year | $1,140 in fees | $421 in fees | ||
Published headline rates as of July 2026 — Paddle and Lemon Squeezy list 5% + $0.50 per transaction; other MoRs (FastSpring, Creem, Dodo, Kelviq) price similarly or by quote. Cross-border/currency surcharges excluded on all sides. Always check current vendor pricing.
Need tax handled for you globally, at any fee? → MoR (Paddle, Lemon Squeezy — compare on vs Paddle).
Need to start charging today, your brand, your customer, fair flat pricing — or your users need payouts too? → paas.build: live merchant account in one prompt, 3.9% flat, UK/EU/US.
No. You need someone willing to give you a merchant account and a way to meet your tax obligations. An MoR bundles both by becoming the seller; a PayFac like paas.build gives you your own live account the same day and tooling for tax — at roughly half to a third of the effective fee on small tickets.
Yes. paas.build onboards individuals/sole traders with progressive KYB: a real merchant account (sandbox + production) the same session, capped (~£1,500) until verification completes. UK, EU and US.
When global VAT/GST handling matters more to you than fees, brand ownership and customer data — typically at meaningful international volume with a lean team. Then Paddle or Lemon Squeezy is a fine pick.
Typical MoR: 5% + $0.50 → effective 10.6% on a $9 sub, 6.7% on $29. paas.build (PayFac): 3.9% flat at any ticket size, no fixed fee, no monthly fee.