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Paddle vs Gumroad: fees, tax, and who each is for

Q: What is the best Paddle or Gumroad alternative for builders?

If you want to stay the merchant (your brand, your customer) and pay less, paas.build on UniPaaS (an FCA-authorised PI, No. 929994) is 3.9% flat, live the same day, no company needed, in the UK, EU and US. If you specifically need worldwide tax remitted for you, an MoR like Paddle or Gumroad is the trade-off - you hand over the transaction to get tax handled.

Both are Merchants of Record - the provider is the legal seller and remits your tax worldwide - but they serve different sellers and price very differently. Paddle is built for SaaS and software; Gumroad for creators selling digital products. Everything below is from their public pricing and reputable 2026 breakdowns.

The fee math, side by side

Paddle: 5% + $0.50 per transaction, tax included. Gumroad: 10% flat per sale plus payment processing (about 2.9% + 30c), which lands roughly 13-16% at small tickets, and 30% on sales through its Discover marketplace. At AI-app and creator ticket sizes the difference is large:

Ticket	Paddle (5% + $0.50)	Gumroad (10% + processing)	paas.build (3.9% flat)
$9	$0.95 = 10.6%	~$1.46 = ~16%	$0.35 = 3.9%
$29	$1.95 = 6.7%	~$4.04 = ~14%	$1.13 = 3.9%

Sources: Paddle fees (Dodo, 2026) · Paddle pricing (Churntools) · Gumroad pricing (Swell) · Gumroad fees (Checkoutpage). Gumroad's processing is charged separately and estimates vary; verify current rates on their sites.

Tax and Merchant of Record

This is what you are really buying with either one. As a Merchant of Record, the provider becomes the legal seller and calculates, collects and remits VAT, sales tax and GST worldwide for you. Paddle has done this for software for years; Gumroad switched to being the full MoR on every sale in January 2025. The trade-off is the same in both cases: you hand over the transaction. It is their name on the customer's statement, their relationship, and they decide payout timing and risk policy.

When each one is the right pick

Pick Paddle if you sell SaaS or software subscriptions, want tax fully handled, and your tickets are large enough that 5% + $0.50 beats a percentage-only model. Its subscription tooling is strong.

Pick Gumroad if you are a creator selling one-off digital products, want the simplest possible setup and a built-in audience via Discover, and can absorb the higher effective rate for that simplicity.

Pick paas.build if you want to stay the merchant - your brand, your customer, your data - and pay less: 3.9% flat, no fixed fee, live the same day via progressive KYB, no company needed, in the UK, EU and US. You do not get tax remitted for you (that is the MoR trade-off), but you keep the transaction and pay a fraction of the fee. Agent-native too: an AI agent can set it up.

FAQ

Is Paddle or Gumroad cheaper?

Paddle's 5% + $0.50 is usually cheaper than Gumroad for software and subscriptions above a few dollars. Gumroad's 10% flat plus payment processing (about 2.9% + 30c) lands around 13-16% at small tickets, which is steep for low-priced digital products. Both bundle tax as Merchant of Record.

Are Paddle and Gumroad both Merchants of Record?

Yes. Paddle has long acted as Merchant of Record for software and SaaS. Gumroad became the full Merchant of Record on every sale in January 2025. In both cases the provider is the legal seller and remits VAT and sales tax, but it also owns the transaction and the customer relationship.

What is the difference between Paddle and Gumroad?

Paddle targets SaaS and software with subscription billing and a lower percentage fee. Gumroad targets creators selling digital products with a simple flat-rate model and a built-in Discover marketplace (30% on Discover sales). Both handle tax; Paddle is cheaper at scale, Gumroad is simplest for one-off creator sales.

What is the best Paddle or Gumroad alternative for builders?

If you want to stay the merchant and pay less, paas.build on UniPaaS (an FCA-authorised PI, No. 929994) is 3.9% flat, live the same day, no company needed, in the UK, EU and US. If you specifically need worldwide tax remitted for you, an MoR like Paddle or Gumroad is the trade-off.

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