Paddle vs Stripe (2026): MoR vs raw processor - and the middle path

The fee stack, side by side

Stripe publishes "2.9% + 30¢" per successful domestic online card; Paddle publishes "5% + 50c per Checkout transaction". But these numbers cover different amounts of work - Stripe's is processing only, Paddle's bundles processing, tax and chargeback cover. Here is the like-for-like on the fee itself:

Scenario	Stripe (2.9% + 30¢)	Paddle (5% + 50c)	paas.build (3.9% flat)
$9 subscription	$0.56 = 6.2%	$0.95 = 10.6%	$0.35 = 3.9%
$29 subscription	$1.14 = 3.9%	$1.95 = 6.7%	$1.13 = 3.9%

On the raw rate Stripe wins comfortably - but that rate does not include tax. Stripe adds +1.5% for international cards and +1% for currency conversion on top; if you sell globally you also carry your own VAT and sales-tax registration, collection and filing, which has a real cost in time or accountants. Paddle's higher rate is the price of never touching any of that. Paddle also applies a 2-3% currency-conversion margin when your sale and payout currencies differ, generally keeps its fee on refunds, and asks you to contact sales for products under $10 - so a $9 plan may not get the standard rate at all. Sources: stripe.com/pricing · paddle.com/pricing · Paddle fees, FX margin & refunds

Who owns the tax?

This is the whole decision. With Stripe you are the merchant of record - Stripe moves the money, but registering for VAT/GST, collecting the right rate in each jurisdiction and filing the returns is on you (Stripe Tax can calculate rates as a paid add-on, but it does not become the legal filer or remitter). With Paddle you are not the seller at all - Paddle is, so it "handles full tax registration, filing and remittance" and adheres to sales-tax and VAT rules worldwide, and you never register in those countries. If cross-border tax is your single biggest headache, that is exactly what you are paying the extra points for. If it isn't - if you're UK/EU/US and mostly domestic - you may be overpaying Paddle for a job you don't need done. Sources: paddle.com/pricing · Stripe Tax (calculation add-on)

Who owns the merchant account?

The mirror image of the tax question. On Stripe the account and the merchant relationship are yours - your business name on the customer's statement, your brand on the receipt, your data, your customer. On Paddle the funds are legally Paddle's until payout and Paddle's name can appear on the statement; you gain compliance and lose direct ownership of the sale. Stripe's own risk terms mean new accounts can face reserves - "a temporary hold on a portion of a business's funds" when it "presents an increased level of risk" - and accounts do get reviewed or paused. Paddle, as an MoR, structurally holds every balance until its payout cycle. Neither is drama-free; the difference is that on Stripe it is at least your account. Sources: Stripe - reserves FAQ · Paddle - when do I get paid

Access, approval and payouts

Stripe accepts individuals and sole proprietors: you "can use Stripe to sell a product if you have not established a separate business entity", activating with your name, address and an SSN, EIN or ITIN in the US. It reviews your website to "understand your business and verify what you are selling", and there is a 7-14 day waiting period for the first payout, after which US settlement is standard T+2 (2 business days). Paddle also accepts individuals and sole traders - its business (company) verification is "not required for individuals or sole traders" - but everyone must clear domain review (auto for most, an estimated 5-7 business days if it goes to manual) plus identity verification before going live, and a brand-new site with no history is more likely to hit a manual review. Payouts are created on the 1st and sent by the 15th above a threshold. So Stripe is faster to open for an individual, but still not instant to your bank; Paddle adds the extra verification gate. Sources: Stripe - selling without a separate entity · Stripe - first payout · Paddle - domain review · Paddle - business verification

Pick Stripe, pick Paddle - or the middle path

Pick Stripe if you want the lowest processing rate and the deepest developer tooling, you're comfortable owning your own tax registration and filings, and you can wait out the first-payout window. It stays your account and your brand.

Pick Paddle if worldwide VAT and sales tax is the problem you most want gone, you want one all-in rate that includes tax and chargeback cover across 200+ countries, and you can absorb the higher points, the FX margin and a stricter verification.

Pick paas.build for the middle path: a real merchant account like Stripe - you stay the legal merchant, your name on the checkout, your customer, your funds on FCA-authorised safeguarded rails - but with same-day onboarding and no company needed. Progressive KYB opens sandbox and production the same session, individuals included. 3.9% flat - no fixed fee, no payout fee, no payout minimum games - which lands between Stripe's raw rate and Paddle's MoR rate while keeping ownership on your side. UK, EU and US (US selling also via MoR under our UK entity, or J.P. Morgan acquiring for US companies). Agent-native too: SKILL.md, llms.txt, and an MCP server on the official registry.

FAQ

Is Paddle or Stripe cheaper?

On the headline rate Stripe is far cheaper: 2.9% + 30c per online card versus Paddle's 5% + 50c. On a $9 sale Stripe is an effective 6.2% versus Paddle's 10.6%; on $29 it's 3.9% versus 6.7%. But Stripe's rate is processing only - you still owe global VAT and sales tax yourself, plus filings. Paddle's higher rate bundles that tax work as your Merchant of Record. The real question is not price, it's who carries the tax. Sources: stripe.com/pricing and paddle.com/pricing.

What is the difference between Paddle and Stripe?

Stripe is a payment processor: you stay the merchant of record, keep your own account and brand, and you are responsible for collecting and remitting tax everywhere you sell. Paddle is a Merchant of Record: it becomes the legal reseller of your product, remits VAT and sales tax across 200+ countries for you, and its brand appears on the receipt - but the account and the funds are Paddle's until payout. Sources: stripe.com/pricing and paddle.com/pricing.

Do I need a company to use Paddle or Stripe?

Neither strictly requires a registered company. Stripe accepts individuals and sole proprietors with no separate business entity - you activate with your name, address and an SSN, EIN or ITIN in the US. Paddle also accepts individuals and sole traders (its company verification is not required for them), but everyone must pass domain review and identity verification before going live, so a brand-new site with no history can hit a manual review. paas.build opens a real capped account the same session via progressive KYB - individuals included, no company needed.

Is there a middle path between Paddle and Stripe?

Yes. paas.build (by UniPaaS, an FCA-authorised Payment Institution, No. 929994) gives you a real merchant account like Stripe - you stay the merchant, your name is on the checkout - but with same-day onboarding and no company required, at a flat 3.9% with no fixed or payout fee across the UK, EU and US. If you specifically need worldwide tax remitted for you, that is the one job an MoR like Paddle still does; US selling on paas.build is also available via MoR under our UK entity or J.P. Morgan acquiring for US companies.

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Paddle vs Stripe: MoR vs raw processor, and the middle path