A detailed comparison of Stripe as compared to. Paddle vs.

To help you choose between Stripe and. Paddle vs. , this comparison guide:

• What aspects of the payment lifecycle every one of them has a solution for (e.g., payment processing, gathering and remitting taxes, and subscription management) and which additional programs you'll require to integrate into your technology stack.
• Which industries and companies serve each other.

Then, we provide a detailed comparison of key options like checkout and reporting. Finally, we share several user reviews as well as examples of the various solutions.

In a nutshell, Stripe primarily deals with payment processing, whereas and Paddle handle payment processing, subscription management including tax collection and tax remitting, fraud protection, and much more without the need for extra software.

 Table of Contents

•   What areas of the payment lifecycle are you able to control and what additional software do you require to have a comprehensive payment solution?
•   What kind of business and industries could benefit from every platform?
•   Comparison of features and functionalities
•     Payment Processing
•     Calculating and remitting taxes on sales, VAT and GST
•     Checkout
•     Subscription Management
•     Reporting and Analytics
•   Pricing
•   Customer Reviews

Notice: Information in this article is true at the time of writing but is subject to change.

Which aspects of the lifecycle of payments will you be able to manage and what other software do you require to complete your payment system?

Stripe Paye: Payment Processing

Stripe is most famous for its payment processing capabilities, so they assist you in collecting information about payments and have them authorized. Additionally, they provide a number of basic functions to manage your subscription including fraud detection, invoicing as well as other features.

These extra features may meet the needs of some early-stage startup companies, however, most companies end up needing additional options that are more powerful. Eventually, you'll need additional software that can handle complex recurring requirements for billing, to accept more payment methods around the world, or design a customized checkout process. It's a good thing that most developers can easily connect Stripe with most other software (however you must be able to pay for each program separately).

Most companies using Stripe will also require staff in charge of the sales tax (and VAT) as well as regulatory compliance. Even though Stripe takes sales tax and VAT on behalf of your company, you are responsible for remitting it. If you pay tax in the wrong amount, at the wrong moment, or with the incorrect method there's a chance that you'll be liable for financial loss and penalties. (More on this later. )

Additionally, you'll be accountable of staying current as well as observing local laws and regulations in which your customers live. This can be a daunting task for any organization, and that's why the majority of companies allocate an entire division to this work.

The entire payment lifecycle

• Multi-payment processors (which enhances the rate of authorization and helps conduct transactions globally).
• Flexible management of subscriptions and tools for recurring billing.
• B2B electronic invoicing.
• Advanced methods of fraud detection.
• Fully customizable checkout (down to the last pixel).
• Detailed reports and analytics.
• Plus much plus.

It will be possible to control all aspects of the payment lifecycle from your account without having to install additional headcount or software.

Paddle: The Majority of the lifecycle of a payment

Paddle offers solutions for payment processing in addition to subscription management as well as fraud detection. It has more features than Stripe's offerings. But, some of the capabilities aren't as strong as 's features. In particular, the checkout option is more flexible than Paddle's checkout options (more on this later).

If Paddle doesn't offer the functionality you need, you may need to add additional software or move to a different software or.

Similar to Paddle, it is a MoR.

What kinds of businesses and Which Industries Can Use Every Platform?

Stripe: Nearly Any Business

The Stripe platform is used by nearly any type of business in nearly any industry. However, SaaS companies will inevitably run into a few struggles while using Stripe.

As we mentioned earlier, the companies that use Stripe have the sole responsibility of remitting sales tax and VAT. The old rule was that SaaS firms didn't have to pay taxes on sales or VAT but many states and countries are creating (and insisting on enforce) new laws that force SaaS businesses to pay sales tax or VAT.

Two examples are provided:

• 1 January 2015 The European Union began requiring software sellers to collect and remit VAT based on the location of the buyer and not on the location of the seller's company or employees.
• In the year 2018 it was the year that in 2018, the United States Supreme Court has ruled that states can impose sales tax on purchases by sellers outside of the state (including sellers on the internet), even if the seller does not have any physical presence within the state in which tax is levied.

Maintaining track of and adhering to ever changing tax laws isn't an easy task. It's the reason SaaS firms (and those selling digital product) should opt for the right solution that will handle remitting sales tax and VAT on your behalf.

: B2C and B2B SaaS or Digital Goods Companies

For nearly 20 years it has served B2B and B2C companies that sell SaaS, digital products, as well as software downloads:

Paddle B2C SaaS

Paddle has been providing SaaS companies for about ten years. Paddle's platform is more suitable for B2C companies, however, they're currently working on adding new features for B2B firms, for example, automated invoices.

If the addition of B2B services is in your future, these features might be available by the time you need them. But, if you're already selling products that are B2B-related then you might want to look into a different solution that comes with fully functioning B2B features ('s Digital Invoicing tool for B2B is running for some time).

Then, we will look at Stripe with. vs. Paddle, according to specific attributes.

Functions and feature comparisons

Payment Processing (Payment Methods, Currencies and more)

Stripe

For Stripe to start accepting payments Stripe it is necessary to configure each location with the appropriate currency and payment options that you would like to accept for that specific location. Once set in place, Stripe will automatically convert price of products and show the right currency and payment options at the time of checkout.

Stripe supports 135+ currencies.

You'll be able accept credit card payments from the major credit card networks (including MasterCard and Visa) as well as bank transfers, vouchers along with popular wallets like Apple Pay and Google Pay. They don't, however, support PayPal.

Stripe also supports in-person transactions via the Stripe Terminal as well as mobile SDKs.

makes it simple for SaaS and eCommerce companies to accept transactions in all currencies and preferred payment methods around the world. Instead of configuring each one in isolation, retailers can switch on localized payment and begin accepting international payments right away.

However, Stripe automatically converts the price to the local currency for you, provides more flexibility:

• It is possible to let the conversions for you, oryou can fix a price fixed for your items for each one of the currencies.
• You can let select the right currency according to the user's area of residence, or you can select the appropriate currency for each location, or you can let the customer pick the currency they prefer. supports 23+ currencies.

 Customers can make payment by using:

• Credit cards, including Visa, MasterCard, American Express, Discover, JCB as well as UnionPay.
• ACH.
• SEPA Direct Debit.
• Wire transfers.
• Wallets including PayPal, Apple Pay, Amazon, Alipay, and more.

The success rate of payments is higher rate when the payment gateway is in the same area as the buyer. Automatically routes online transactions through the payment gateway that has the best rate of authorization for the type of payment and its location.

Plus, using several payment gateways can solve the majority of failed payment issues that are caused by network issues. If a payment gateway is experiencing a technical failure, automatically retries the payment with a different payment gatewaywith your staff not having to lift a finger.

Bonus: Sift Partners as Sift

takes the lead on the risk and fraud aspects (including the chargeback process). We collaborate with Sift the world's pioneer in risk analysis and fraud prevention to ensure your transaction secure. Sift utilizes machine learning and AI to:

• Increase accuracy in fraud decisions.
• Improve approval rates and result in less false positives.
• Make sure that bad actors are stopped before a transaction is even completed.

Additionally, the bloc also prohibits transactions with countries and jurisdictions where companies are currently not allowed to engage in business.

Paddle

Paddle is also a payment gateways and lets companies accept payments from all over the world with only a few configuration.

Paddle supports 20+ currencies, credit cards that are popular (including MasterCard, Union Pay and many more) wire transfers as well as wallets (including Apple Pay, Google Pay, PayPal, and Alipay) however, some of these options are currently in beta testing.

Inputing and submitting Sales Tax, VAT, and GST

Stripe

Stripe has acquired TaxJar for the purpose of helping you calculate VAT, sales tax, and GST. But, they provide instructions on enabling taxes features as well as the assignment of tax codes. It is your responsibility to make decisions and implications that result from using these options (e.g., knowing how your product is classified under tax law and if/where you are nexus-related, you must to collect, register, file, and submit taxes on consumption). If you have questions about ways to reduce tax burdens and qualify for tax reductions, rates, or other tax-related question You'll probably be advised to speak with your tax professional or go through the assistance articles.

 If you've set it up incorrectly and pay the wrong amount (or the wrong type) of tax, you'll be held liable.

Plus, remitting sales taxes is usually more complex than just filling out a sheet and writing out a cheque. As the years progress, nations have imposed further requirements in order to be compliant. For example:

• Some countries like Colombia, Japan, Mexico, Serbia, and others need local representation, meaning you have an employee with an actual presence in the country to be responsible for your tax obligations. It can range between $5k and $15k each year.
• Countries such as India, Indonesia, Japan, and others require the accounts to be "pre-funded" meaning you need to know how much tax you'll owe, and then keep the money until it's time to make a tax filing (up up to 3 months in advance).
• Countries like Serbia, United Kingdom, Taiwan and many others have electronic invoices (it also applies for non-resident businesses, and other companies, too). The typical cost for companies is $2k to $5k annually. Note: E-invoicing mandates are increasing at an alarming rate and the EU outlining all-encompassing electronic invoice requirements before 2028..
• Countries like Taiwan, Indonesia, Nigeria, Vietnam, and others are requiring you to declare income tax along with to indirect tax (this can add up to $5-$10k per year).

Finally, wiring tax-related payments internationally isn't effortless or inexpensive. The banks that process the tax payments and those who receive them are both charged fees. There's also an added risk with foreign transactions.

So, while Stripe is taking a significant step to help to collect sales tax purchasing TaxJar but they're a far away from offering an all-in-one solution to sales tax as well as international tax.

takes care of the entire procedure of gathering and remitting taxes on sales, VAT, and GST to you .

With more than 20 years' working experience in the filing of more than 1,200 annual tax returns Our team makes sure the correct amount (and the correct type) of indirect tax collection during checkout. We also handle tax-exempt transactions within the U.S. and 0% reverse charge when permitted internationally.

The tax collection agency files taxes and records them across 52 nations, 13 provinces and in all 45 U.S. states that collect sales tax (five states don't have any taxes on sales).

Our team then pays these taxes for you, and will ensure that the proper processes are in place in order to ensure compliance. If a government or state approaches you about tax compliance, our team will advise you on how to respond in the same way as copy and paste responses.

We establish and maintain connections with tax specialists around the globe to ensure we're informed of new the latest laws and regulations that evolve.

Bonus: Custom Tax Codes

Tools such as TaxJar, Avalara, and other tax software provide the tax code for the majority of products and services. In reality, many companies at some point want to offer services or products that isn't in the description of any of the tax codes offered (e.g. the possibility of an in-person conference with some participants and speakers who are virtual). If you use a program like TaxJar, you'll be on your own to calculate and pay the correct amount and kind of indirect tax because TaxJar doesn't provide an appropriate tax code to suit your unique situation.

It's not a problem for sellers because we just released a option that lets us build unique product tax codes tailored to the specific use casein just a few minutes. Tell us the details of your product or service and we'll generate the tax code for you.

Paddle

Like , Paddle takes the lead in collecting and remitting the sales tax, VAT, and GST on behalf of the benefit of you. Contrary to the other , Paddle doesn't support tax exemption instances in the U.S.

Check-out

Stripe

Stripe Checkout offers a pre-built payment site that can be used with any mobile device. You have a few choices for personalization (e.g. text, fonts forms, block shapes and colors, etc.) but it's pretty restricted. Stripe instantly converts Checkout to the appropriate the language (35+ options) based on the buyer's place of residence.

You can customize all aspects of your checkout experience, from custom fields to branded colours. There's also the option to decide whether to give your developer complete control over the checkout process or let them handle it all for you (or something in between).

Here's a summary of's check-out choices:

• Three versions: You have the option to embed the checkout directly into your site you can also make use of a pop-up checkout or direct your customers to a Web Storefront managed by .

• Store Builder Library (SBL): 's SBL provides you with total control over the appearance and feel of your check-out up to the last pixelregardless of the checkout option you choose.
• Localized Checkout:Let customers choose their preferred language, or let them pick the most appropriate language based on the buyer's place of residence. supports 19+ languages.
• built-in tracking and test tools: With 's built-in tracking tools, you can quickly identify ways to increase conversion rates. Most companies that use this tool are able to boost their conversion rate by 30percent or more.
• Personalized customer service:Although we offer you total control over the checkout process and payment options, our support team is there to provide you with the most efficient checkout experience for your company. Some companies only provide personal support for their biggest customers, and hardly ever provide support to smaller firms. At , we don't play with our clients' interests. Our team is always happy to assist in any way that they could.

Paddle

Paddle has two options for checkout:

• Included on your website
• Popup overlay

In these two formats, you can choose from 50 different options to customize. Paddle is compatible with 16 languages and will automatically translate your shopping cart.

Subscription Management

Stripe

Stripe Billing includes a few different subscription options:

• Flat-rate billing (for an annual or monthly price) annual price)
• Billing for multiple prices (where the same item is offered at different prices in different locations)
• Per-seat bill (based on active customers during the billing cycle)
• Usage-based billing (single unit, or tied)
• Flat-rate and overage (a mixture of usage-based and flat-rate billing)

These options work for some businesses that have only some basic subscription-based offerings However, businesses with more complicated recurring billing requirements (e.g., SaaS) generally require an additional tool. In this regard, Stripe has developed a closely-knit collaboration with Chargebee in order to make it simpler for customers to obtain the tools for subscription billing they need. Although it's really easy to integrate these two tools, you will have to handle and pay for both separately.

Finally, Stripe offers a customer website where users can control their accounts (both and Paddle offer this as well).

provides a wide variety of management tools for subscriptions designed specifically for SaaS companies.

Additionally, the majority of these options can be set up without writing any programming. As an example, you could create:

• Automated weekly, monthly or yearly recurring billing.
• Prorated billing to accommodate upgrades -- and downgrades -- mid-cycle.
• Free or paid trials of any length.
• Trials that don't require the payment information (by not collecting details about payment you'll reduce friction during check-out, which usually leads to higher percentages of sales).
• Automatic or manual renewal.
• Upsells, cross-sells, one-time additions and discounts.
• Plus much More...

Access to our API as well as our webhooks library to provide additional customisation options.

 A major aspect that frequently gets overlooked is whether or not your recurring billing model follows local laws and regulations for transactions.

For example For instance, for instance, the Reserve Bank of India (RBI) has specific rules for recurring payments. At the time of writing the RBI limits automatic recurring payments to 15,000 rupees (approximately $180). If a purchase exceeds that amount, the customer must approve each transaction manually. Additionally, you need to make an official request to the RBI to outline the steps you have in place to make sure you are in compliance. If you fail to make a formal mandate application or allow customers to manually approve big transactions, you could face massive fines, or even be barred from selling products to consumers in India.

While some subscription management tools are able to release updates for community members whenever they learn about new regulations However, you're ultimately responsible for keeping track of compliance with all laws and regulations. If you don't comply, you could face sanctions or ban from doing business in that jurisdiction. Many companies require additional staff in order to handle this.

 customers don't have to worry about this since we'll accept the transaction responsibility on behalf of you.

Our team of experts in legal matters is up-to-date on the latest legal developments, makes sure the necessary procedures are in place, takes the initiative in audits and offers individual guidance regarding how to remain legally compliant- all without additional charge.

Bonus: Digital Invoicing

DI (DI) lets you manage B2B orders in conjunction with B2C purchases. Through DI, you are able to:

• Create and manage custom quotes at any time (including customized tags coupons, discounts and many more).
• Set quote expiration dates.
• Request and accept payment.
• Make notes that are specific to your prospective customer or prospect.
• Provide a self-service quote widget (this is particularly useful when customers need approval before purchasing).
• And many plus.

Paddle

Through a variety of webhooks and their APIs, Paddle supports the following subscription models:

• Fixed
• Tiered
• Per-seat
• Metered

Plus, some of these alternatives can be combined. For example, you could create a tiered system where each tier allows for a different number of seats.

Paddle supports free or paid trial, but users will need to supply payment information prior to starting the trial. Paddle additionally automatically adjusts the prorated amount when users change their plan during the course of their trial (e.g. adding new users or make an upgrade).

Analytics and Reporting

Stripe

Stripe offers a suite of tools for revenue recognition to help you streamline accounting, including:

• Basic accounting reports including balance sheets and income statements.
• Revenue rules that can be configured, such as excluding the passthrough fee and setting auto-adjusting recognition schedules.
• Overview of revenue reports.
• and more...

All reports can be viewed on your Stripe dashboard, and certain reports are available to download as an CSV file. It is also possible to integrate with accounting software like QuickBooks Desktop and Xero. But, the capability to import information from revenue recognition companies into Stripe is still in beta.

Data and Analytics Reporting is a robust software that will help you to understand:

• What each product does to the bottom line of your business.
• The time when customers are the most likely to leave.
• What promotions or coupons have been successful.
• Which subscription models generate the highest revenues.
• The location of your clients.
• What payment and currency options do consumers prefer.
• and there's More...

A majority of this data is available in either of the dashboards that include both the Revenue overview dashboard as well as the subscription overview dashboard.

The dashboard for revenue overview provides more information including total transactions by country, as well as net sales per product.

The dashboard for subscriptions lets you drill to more specific information like active customers or monthly recurring revenue (MRR) in the course of time.

If you can't find the exact report you need on these dashboards, then you can build and save your own reports. Also, contact us to help you locate (or create) the report you require. Any report can be viewed on your dashboard, or downloaded as the CSV or PNG file or XLSX files.

Paddle

Paddle recently bought ProfitWell to offer reports and analytics capabilities. But, the integration isn't complete, so there could be some differences between these two platforms. For example, they will show different MRR.

After integration, Paddle will be able to:

• Automatically keep track of and publish key performance indicators, like MRR.
• Monitor user engagement and churn.
• Offer benchmarking tools and segmentation techniques.
• And more...

Pricing

Stripe

A DIY-oriented platform, Stripe's pricing works much different than Paddle's. In the case of Stripe you'll have to pay for additional software and an additional headcount for managing various aspects of the billing process, such as authentication and subscription management, as well as remitting sales tax and VAT, and many more.

Stripe is also pricing cards and wallets differently as compared to other payment methods, such as ACH or SEPA.

In all of the payment options listed above You'll be able to access many of their services but not all. Like, for instance, Stripe charges additional fees for transactions that are 3D secure, invoicing, tax features, and more.

For more information regarding Stripe, visit their website.

You'll be able to accessibility to all of the platform (and the entire range of services) at a flat rate. Because we assume the responsibility for transactions on your behalf and lead the charge on VAT and sales tax You won't require any additional software or staffing.

Our team works together with you to come up with an affordable rate based on the volume of transactions that you conduct . Plus, you'll only be charged for transactions that occur.

Paddle

Paddle advertises a flat-rate fee for their core product which comprises the majority of services you'll needpayment processing payment, check-out, subscriptions worldwide fiscal and regulatory compliance fraud prevention and reporting, among others however, it doesn't contain everything.

In this case, Paddle collects a 10% fee to reclaim empty carts.

To learn more about Paddle, visit their website.

Customer Reviews

Stripe

Stripe is currently 4.4 rating on G2 (a popular software review site) with 82+ reviews.

The company currently has 4.5 ratings in G2 along with reviews of 184+.

This is what a few of our clients had to say:

Paddle

Paddle is currently rated 4.5 rating on G2 along with more than 145 reviews.

Final. Paddle vs. Stripe

If you're selling physical items or services, and Paddle is not an option, making Stripe the ideal choice of three choices discussed in this article. If you are selling digital goods, Stripe may not be the most suitable option as you'll be on your own in constructing a full payment system (which can be expensive and takes a long time).

is serving SaaS companies since twice the time of Paddle and offers additional features and capabilities. Also, it is better equipped to help B2B businesses.