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

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

• What areas that each one provides a solution to (e.g. the processing of payments collection and remitting taxes and managing subscriptions) and which additional programs you'll need to add to your stack of tech.
• What companies and industries each serves.

Then, we provide an in-depth comparison of the most important tools like checkout or reports. We also provide user reviews as well as case studies for each solution.

In short, Stripe primarily deals with payment processing, whereas and Paddle handle the processing of payments, managing subscriptions as well as tax collection and payment in addition to fraud prevention and more with no the need for additional software.

 Table of Contents

•   What aspects of the payment lifecycle are you able to control and what additional software are you going to require to have a comprehensive payment solution?
•   What types of businesses and which industries can use each platform?
•   Features and functionality comparisons
•     Process Payment
•     Remitting and calculation of sales tax, VAT, and GST
•     Checkout
•     Subscription Management
•     Reporting and Analytics
•   Pricing
•   Review by Customer

Notice: Information in this article is correct as of the time of writing but may change.

What areas of the payment lifecycle will you be able to handle and which other programs do you require to complete your payment system?

Stripe: Payment Processing

Stripe is best known as a payment processor, which means they help you collect information about payments and have them authorized. Additionally, they provide basic services to manage your subscription including fraud detection, invoicing, and more.

These additional features can satisfy the needs of a few early stage start-ups, however, the majority of companies will require additional options that are more powerful. In the end, you'll require additional software that can handle complex recurring payment requirements, take on different payment options around the globe, or even create an individual checkout procedure. The good news is that many developers are able to connect Stripe with the majority of other applications (however it is necessary to pay for each software separately).

Many companies that utilize Stripe also need additional staff to handle taxation of sales (and VAT) as well as regulatory compliance. While Stripe takes taxes on sales and VAT for your company, you are responsible for remitting it. If you pay tax in the wrong quantity, in the wrong time or in the wrong way, you could face penalty and financial losses. (More about this in the future. )

Additionally, you'll be accountable to be up-to-date as well as observing local laws and regulations in which the customers reside. It's a big undertaking for any business, which is the reason why many companies devote an entire department to the job.

: The Entire Payment Lifecycle

• Many payment processors (which improves authorization rates and allows you to transact globally).
• Flexible subscription management tools and tools for recurring billing.
• B2B Digital Invoicing.
• Advanced methods of fraud detection.
• Fully customizable check out (down to the last pixel).
• Analytics and reports that are detailed.
• And many and more.

You'll have the ability to handle all aspects of your process of payment from the control panel without having to install additional headcount or software.

Paddle: The majority of the Life Cycle of Payments

Paddle provides options for processing payments in addition to subscription management and detection of fraud, and has more features than Stripe's solutions. But, some of the capabilities aren't as strong as 's features. For example, 's checkout is more customizable than Paddle's checkout options (more about this in the future).

If Paddle does not provide the features it needs, you could need to add additional software or change to another software or.

Like , Paddle is a MoR.

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

The Stripe App: Nearly Any Business

It is a great choice for nearly any type of company in almost any field. However, SaaS companies will inevitably encounter some issues with Stripe.

As we mentioned earlier, the companies that use Stripe are entirely responsible for paying sales tax and VAT. There was a time that SaaS businesses didn't need to remit sales tax or VAT; however, many states and countries are coming up with (and insisting on enforce) new laws that force SaaS firms to pay taxes on sales or VAT.

Here are two examples:

• 1 January 2015 The European Union began requiring software sellers to collect and remit VAT in accordance with the place of the buyer rather than the address of the company's employees or of its headquarters.
• In 2018 in 2018, in 2018, the United States Supreme Court decided that states may charge sales tax on purchases made through sellers who are not in the state (including online sellers) however the seller is not located in an actual presence in the state in which tax is levied.

Being aware of and adhering to constantly changing tax laws isn't an easy task. That's why SaaS firms (and companies selling any digital goods) should opt for a solution like that will manage the remittance of sales tax and VAT on your behalf.

: B2C and B2B SaaS or Digital Goods Companies

Since its inception, has been serving B2B and B2C companies that sell SaaS Digital products and software that is downloadable:

Paddle B2C SaaS

Paddle is serving SaaS businesses for about 10 years. Paddle's platform is better suited to B2C companies, however, they're working to add additional features to B2B businesses, like automatic invoicing.

If the addition of B2B services are in the future, these features could be in place at the point you'll need they. But, if you're already selling products that are B2B-related then you might want look at a different option that has fully operational B2B capabilities ('s Digital Invoicing tool that is B2B-specific has been live for several years).

We will then look at Stripe vs. and. Paddle, according to certain attributes.

Functionality and Feature Comparisons

Payment Processing (Payment methods, currencies and more)

Stripe

To start processing payments with Stripe it is necessary to create each account with the currency and payment methods you want to offer for that specific place. After you have set it to go live, Stripe will automatically convert product prices and display the correct option for payment and currency at the time of checkout.

Stripe supports 135+ currencies.

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

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

It makes it easy for SaaS and eCommerce companies to accept payment in a variety of different currencies and payment options around the globe. Instead of configuring each one separately, merchants can turn on localized payments and start accepting global payments immediately.

In contrast, Stripe automatically converts the price in local currencies for you, provides more flexibility:

• You can let make the conversions on your behalf, oryou can set a fixed price for each of your products for each country.
• It is possible to let the user you choose the most appropriate currency based on the user's location, you can choose one specific currency per location, or you could let users select their preferred currency. supports 23+ currencies.

 With , customers can pay by using:

• Credit cards include Visa, MasterCard, American Express, Discover, JCB as well as UnionPay.
• ACH.
• SEPA Direct Debit.
• Wire transfers.
• Paysafecards, such as PayPal, Apple Pay, Amazon, Alipay, and other.

The success rate of payments is higher rate when the gateway is located in the same area as the buyer. automatically routes online payments through the gateway with the highest approval rates applicable to that particular payment method and the location.

Furthermore, the use of different payment options can resolve the majority of problems with failed payments that arise caused by network issues. When a gateway for payment has a problem with its technology then it automatically attempts to retry the transaction with a different payment gatewaywith your staff not having to lift a finger.

Bonus: Sift Partners as Sift

is the leader in the risk and fraud aspects (including chargesbacks). We work with Sift, a global pioneer in risk analysis and fraud prevention, to keep your transactions safe. Sift employs machines learning and AI in order to:

• Increase accuracy in fraud decisions.
• Improve approval rates and result in fewer false positives.
• Make sure that bad actors are stopped before the transaction has even been processed.

Also, it blocks transactions coming from countries and jurisdictions where companies cannot currently do business.

Paddle

Paddle additionally uses multiple payment processors, allowing companies to accept international payments without any setup.

Paddle supports 20+ currencies, popular credit cards (including MasterCard, Union Pay and many more), wire transfers, as well as money-saving wallets (including Apple Pay, Google Pay, PayPal, and Alipay) however, many of these are in the process of being tested.

Calculating and Remitting Sales Tax as well as GST, VAT and

Stripe

Stripe purchased TaxJar to help you calculate VAT, sales tax, and GST. But, they provide directions for activating tax-related features and giving tax codes. It is your responsibility to make decision-making and the implications that result from using these options (e.g. understanding what your product's classification is under tax law and if/where you are nexus-related, you must to collect, register, file, and submit the consumption tax). If you have questions about the best way to maximize tax rates and qualify for tax reductions, rates, or any other tax-related issue You'll probably be advised to speak with your tax professional or look through the articles.

 If you created it incorrectly and you pay the incorrect amount (or type) in tax you'll be held liable.

Additionally, paying sales tax is usually more complex than simply filling in a sheet and writing out a cheque. More and more nations are imposing more requirements for compliance. For example:

• Countries like Colombia, Japan, Mexico, Serbia, and others are governed by the presence of a local representative, meaning you have to hire someone with a physical presence in that country in order to pay your tax obligations. It can range between $5k and $15k each year.
• Some countries like India, Indonesia, Japan, and others require your accounts to be "pre-funded" meaning you must determine the amount of tax you'll owe, and then keep the money until it's time to file (up to three months in advance).
• Some countries like Serbia, United Kingdom, Taiwan, and others require electronic invoicing (it applies to companies that are not resident too). The typical cost for companies is $2k to $5k annually. Notice: E-invoicing mandates are growing at a rapid rate -- with the EU rolling out all-encompassing electronic invoice requirements before 2028.
• Some countries like Taiwan, Indonesia, Nigeria, Vietnam, and others require you to declare income tax in addition to indirect tax (this can add up to 5-10k dollars annually).

Finally, wiring international tax payments is not simple or cost-free. Banks that receive and corresponding are both charged fees. There's also an added risk with foreign transactions.

Therefore, although Stripe is taking a significant move towards helping customers collect sales tax through buying TaxJar, they're a long way from providing an end-to-end solution for tax collection and international tax.

handles the entire process of gathering and remitting the sales tax, VAT along with GST for you .

With more than 20 years' working experience in the filing of more than 1,200 tax returns every year Our team is able to ensure that the correct amount (and the correct type) of indirect tax collection when you pay your bill -- we also handle tax-exempt transactions within the U.S. and 0% reverse charge when permitted internationally.

files and collects taxes in 52 countries, 13 provinces, and all the 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 ensures all the necessary processes are in place to stay compliant. If a country or state confronts you regarding tax compliance Our team can advise on the appropriate response in the same way as providing responses using copy-and-paste.

We establish and maintain connections with tax law specialists across the world to make sure that we're aware of tax the latest laws and regulations that evolve.

Bonus: Tax Codes Customized

Tools such as TaxJar, Avalara, and other tax software provide you with tax codes for most products and services. However, most companies will at some point want to offer services or products that doesn't fit neatly into the description of any of the tax codes offered (e.g. the possibility of an in-person conference with some online attendees and speakers). If you use a program like TaxJar it will be your own to calculate and calculate the appropriate amount and kind of indirect tax as there isn't a tax code for the specific situation you're in.

This isn't an issue for sellers since we have just released a option that lets us make unique tax codes for each product customized by use case -and in just only a few minutes. Just tell us about the product or service you offer and we'll create your tax code.

Paddle

Like , Paddle takes the lead on gathering and remitting taxes on sales, VAT, and GST for customers. Unlike , Paddle doesn't support tax exempt situations in the U.S.

Check-out

Stripe

Stripe Checkout can be described as a prebuilt payment page designed for use with any mobile device. You have a few choices for personalization (e.g., font forms, block patterns and colors and more.) but it's pretty small. Stripe will automatically translate Checkout to the right the language (35plus options) based on the buyer's area of.

allows you to customize each aspect of your checkout, with custom fields, to custom colours. You also have the flexibility to choose whether you want to provide your developer with complete control of checkout, or allow them to the system manage it on your behalf (or something within the middle).

Here's an overview of 's check-out options:

• Three versions: You have the option to embed checkout directly onto your website you can also use a popup checkout, or redirect clients to the Web Storefront managed by .

• Store Builder Library (SBL):  The SBL gives you total control over the appearance and feel of your check-out up to the last pixelregardless of the checkout method you select.
• Localized Checkout:Let customers choose their preferred language, or let them pick the most appropriate one based on their place of residence. It supports 19+ languages.
• built-in tracking and test devices: With 's built-in tracking tools, you can quickly identify ways to increase the conversion rate. Many companies who use this tool are able to increase their conversion rates by 30percent or more.
• Personalized customer support:Although we give you complete control of your shopping cart Our team will be ready to assist you in creating the most efficient checkout experience possible for your business. Some companies only provide personal support for their biggest customers, and hardly ever provide support to smaller firms. We aren't one of them. the game of a few. Our team is ready to help in any ways they are able to.

Paddle

Paddle provides two versions of checkout:

• Included on your website
• Popup overlay

Within these two formats, they offer 50+ options to personalize. Paddle is compatible with 16 languages and can automatically translate your payment.

Subscription Management

Stripe

Stripe Billing includes a few various subscription options:

• Flat-rate bill (for an annual or monthly price) annual price)
• Multiple price billing (where the same product is sold for different rates in various locations)
• Per-seat bill (based on the number of active users at the time of billing)
• Usage-based charging (single unit, or tied)
• Flat-rate plus overage (a mixture of usage-based billing and flat-rate)

This option is suitable for companies that only have just a handful of subscription-based services but companies that have greater complexity in their recurring billing requirements (e.g., SaaS) generally require an additional tool. To this end, Stripe has developed a strong partnership with Chargebee to make it easier for their customers to get the tools for subscription billing they need. While it's easy to connect these two services, you will have to handle and pay for both of them separately.

Finally, Stripe offers a customer account management portal that allows customers to manage their accounts (both as well as Paddle provide this feature as well).

offers a variety of subscription management options built specifically to be used by SaaS companies.

Furthermore, many of these solutions can be created without the need to write codes. As an example, you could set up:

• Automatic weekly, monthly, or even yearly recurring bill.
• The prorated bill allows for changes -- as well as downgrades in mid-cycle.
• Trials for free or paid that are of any length.
• Trials that don't require the payment information (by not collecting details about payment, you're reducing friction at the checkout point, leading to higher percentages of sales).
• Automatic or manual renewal.
• One-time discount, add-ons.
• Plus many More...

You will also have access to our API and webhooks library , which will allow you additional customization options.

 The most important thing that overlooks is whether or no your periodic billing plan is compliant with local regulations and laws governing transactions.

As an example For instance, the Reserve Bank of India (RBI) is a strict regulator for recurring payments. In the moment of writing this article, the RBI limits automatic recurring payments to 15,000 rupees (approximately one hundred dollars). If a payment is over that amount, the customer has to sign off on each transaction by hand. You also have to file an official mandate with the RBI to outline the steps that you must follow to ensure that you are in compliance. If you don't submit a mandate, or you allow customers to manually approve big transactions, you could face severe penalties or even be banned from selling your products to clients from India.

Although some tools for managing subscriptions will release community updates whenever they are informed of new rules However, you're ultimately responsible for keeping track the applicable laws and regulations. If you don't adhere to the rules, you may face sanctions or ban from conducting business within that area. Most companies need additional headcount for this.

 customers don't have to worry about this because we accept the transaction responsibility on behalf of our customers.

Our legal team keeps up-to-date with every legal aspect, and ensures the necessary procedures are in place. They also take the lead on audits, and provides individual advice regarding how to remain in compliance -- and all this without additional charge.

Bonus: Digital Invoicing

The Digital Invoicing (DI) allows you to manage B2B orders in conjunction with B2C purchases. With DI, you can:

• Create and manage custom quotes at any time (including customized tags coupons, discounts and much more).
• Set quote expiration dates.
• Pay and ask for payment.
• Make notes that are specific to your customer/prospect.
• Provide a self-service quote widget (this is especially useful when clients require approval prior to purchasing).
• Plus there's plus.

Paddle

Using a series of webhooks as well as their API, Paddle supports the following subscription model:

• Fixed
• Tiered
• Per-seat
• Metered

Furthermore, certain alternatives can be combined. As an example, you can make a tiered design with each level allowing the use of a amount of seats.

Paddle allows free or paid trials, however, users will need to supply payment information in order to start the trial. Paddle also automatically applies prorated amounts when customers change their plan during the course of their trial (e.g. or add new users or make an upgrade).

Reporting and Analytics

Stripe

Stripe has a variety of revenue recognition tools to assist you in reducing your expenses and accounting, such as:

• Standard accounting reports, such as balance sheets or income statement.
• Revenue rules that can be configured like excluding the passthrough fee and setting auto-adjusting timings for recognition.
• Overview of revenue reports.
• and more...

The reports are all accessible on your Stripe dashboard and some reports can be downloaded in CSV files. CSV file. You can also integrate with accounting software including QuickBooks Desktop and Xero. But, the capability to import data from other revenue recognition systems to Stripe is in the early stages of testing.

Data and Analytics Reporting is a robust tool that can help you comprehend:

• What each product does to the bottom line of your business.
• The time when customers are the most likely to leave.
• What coupons or promotions work.
• Which subscription model generates the most revenue.
• The location of your clients.
• What currencies and payment methods clients prefer.
• Plus there's more...

Most of this information is available in one of two dashboards that include both the income overview dashboard as well as the subscription overview dashboard.

The dashboard for revenue overview provides more information such as total transactions by country or net sales by product.

The dashboard for subscriptions allows you to drill to more specific information like active customers or monthly recurring revenue (MRR) over time.

If you don't see the report you require within these dashboards, you are able to make and save your own custom reports. Also, contact us and we'll assist you in finding (or create) the report you need. Any report can be viewed in your dashboard or downloaded in an CSV PNG, XLSX or XLSX files.

Paddle

Paddle recently bought ProfitWell to offer reporting and analytics features. But, the integration isn't fully completed, and there will be some discrepancies between platforms. In particular, they will show various MRR.

Once fully integrated, Paddle will be able to:

• Automatically monitor and provide reports on important performance indicators, like MRR.
• Track user engagement and reduce churn.
• Offer benchmarking tools and segmentation techniques.
• and more...

Pricing

Stripe

Being a platform for DIY, Stripe's pricing works much differently from Paddle or. In the case of Stripe it is necessary to purchase additional software and headcount to manage various aspects of the billing process, such as security measures for fraud and subscription management, as well as remitting VAT and sales tax, and many more.

Stripe is also pricing card and wallets in a different way as compared to other payment methods, like ACH or SEPA.

With all of these payment methods, you'll have access to some of their features, but not all of them. As an example, Stripe charges additional fees for secure 3D transactions, invoicing, tax features and many more.

To find out more about Stripe, visit their website.

Through this, you'll get access to the entire platform (and the entire range of services) at a flat rate. Because we assume all responsibility for your transactions and also take charge of VAT and sales tax You won't require any additional software or headcount.

Our team works in partnership with you to determine an affordable price based on the volume of transactions you move through . Plus, you'll only be charged for transactions that are completed.

Paddle

Paddle advertises a flat-rate fee for their core product which includes most of the services you'll needpayment processing and checkout, subscriptions, international taxes and tax compliance fraud prevention and reporting, and more However, it does not include everything.

In this case, Paddle collects a 10% profit to help recover empty carts.

To learn more about Paddle, visit their website.

Customer Review

Stripe

Stripe is currently rated 4.4 ratings at G2 (a popular software review site) with more than 82 reviews.

currently has 4.5 stars on G2 and 184+ reviews.

Here's what some of our customers have to say about us:

Paddle

Paddle currently has 4.5 rating on G2 along with over 145 reviews.

Conclusion: vs. Paddle vs. Stripe

When you're offering physical products or services, or services, then Paddle isn't an option, making Stripe the ideal choice of three choices discussed here. If you're selling digital goods, Stripe may not be the best choice because you'll be on your own to create a comprehensive payment solution (which costs a lot of time and money).

It has served SaaS enterprises for twice as long as Paddle and offers additional features and capabilities. is also better prepared to assist B2B companies.