What is Paddle?
Paddle takes care of global payments complexity for SaaS, digital product and mobile app companies selling all over the world. Paddle operates as the Merchant of Record (MoR) managing local payments and currencies, fraud, regional privacy law, customer billing support, and complying with every local sales tax rule on your behalf. To truly scale everywhere, Paddle gives you insight into your revenue metrics, prevents customer churn, benchmarks your performance and gives you the tools, insight and expert advice to accelerate your growth
Who is Paddle for?
Paddle serves B2C and B2B SaaS businesses, and mobile app and digital product companies selling globally. It's ideal for companies seeking to scale by optimizing how they get paid, ensure tax compliance across multiple jurisdictions, effectively manage subscriptions, and gain actionable insights into their business performance.
What makes Paddle different?
Unlike traditional payment processors, Paddle acts as the merchant of record, taking on full responsibility for payment management, tax calculation, remittance, and compliance, honoring refunds and chargebacks, and fraud protection. This simplifies operations for software companies, eliminating the need to manage multiple vendors or handle complex tax regulations. Additionally, Paddle's integration with ProfitWell Metrics and Retain provides deep insights and tools to optimize revenue and reduce churn.
Learn more about the Merchant of Record model
Paddle vs Payment service providers:
The main difference between an Paddle and a PSP is that, because Paddle is a merchant of record, it handles your entire order process, which includes taking on the related liabilities, whereas a payment service provider only handles the transaction process – the part where money leaves your customer’s bank account and arrives in yours.
A PSP, like Stripe, doesn’t take on any of the financial or taxation responsibilities of the transactions you make through their gateway. An MoR takes care of all of them. Payment service providers are only one part of your wider payments infrastructure; you’ll need to manage and integrate other (often costly) tools to build a sufficient billing stack
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Paddle vs Subscription Management Solutions:
Unlike standalone subscription management tools, Paddle integrates subscription management seamlessly with payment management. This integration enables businesses to automate recurring billing, manage customer lifecycles effectively, and optimize subscription revenue. Paddle’s unified approach enhances customer retention and scalability for subscription-based businesses.
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Paddle vs other MoRs:
Paddle was built specifically for SaaS and digital products with a global customer base. Paddle differentiates itself from other MoRs by offering an all-in-one solution that seamlessly integrates payment and subscription management, tax compliance, revenue analytics, churn prevention and expert advice to scale everywhere.
Additionally, Paddle provides transparent pricing with no hidden fees and supports digital businesses of all sizes aiming for global growth.
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How does Paddle help its customers?
Paddle offers a suite of services, including:
- Make it easy for customers to pay, anywhere in the world: Handling global transactions with support for local currencies and payment methods.
- Globally tax compliant immediately: Automatically calculating, collecting, and remitting sales tax and VAT in over 100 jurisdictions.
- Manage any type of subscription: Providing tools for flexible subscription models, billing, and invoicing.
- Protects your from fraud: Implementing measures to reduce risk and manage chargebacks.
- Full visibility into your revenue metrics : Offering detailed analytics on key performance indicators, customer behavior, and financial health to inform strategic decisions.
- Minimize churn automatically: Automated dunning and churn intervention strategies to recover failed payments and reduce customer churn by 25-30%.