Paddle vs Stripe: Payment Platform Selection

Payment platform choice involves tradeoffs between fees, control, and compliance overhead. Stripe offers lower fees with more configuration requirements. Paddle handles more complexity at higher cost. Your market focus determines the better fit.

Stripe for US-Focused Business

Stripe’s standard rate is 2.9% plus $0.30 per transaction. The fixed fee makes low-priced products expensive to process: a $4.99 item loses nearly 10% to fees. Products above $20 bring effective rates closer to 5%.

If your primary market is US-based and you price appropriately, Stripe offers the lower cost structure. You handle currency settings, fraud rules, and compliance yourself, but you retain maximum control and minimum fees.

Currency Conversion Costs

Stripe charges 2% for currency conversion when your settlement currency differs from customer payment currency. A US customer paying in dollars to a Euro-denominated account triggers conversion fees.

Configuring settlement currency to match your primary customer base eliminates this cost. For global audiences, this requires more complex multi-currency management.

Fraud Management Burden

International sales expose you to higher fraud rates. Certain regions present elevated risk. Stripe provides Radar for fraud detection, but configuring effective rules requires ongoing attention.

Custom rules blocking high-risk countries, requiring 3DS verification, and limiting suspicious patterns protect your account. Each disputed transaction costs $20 plus the refunded amount. Account termination follows patterns of elevated disputes.

Paddle’s Merchant of Record Model

Paddle acts as the seller of record. They handle tax collection, currency conversion, and fraud management. You receive net payments after their processing.

For global businesses selling to diverse markets, Paddle eliminates compliance complexity around VAT, sales tax, and international payment regulations. The higher fees reflect the operational burden they assume.

Integration Simplicity

Both platforms offer straightforward technical integration. Vercel provides starter templates for both Stripe and Paddle subscription systems. Implementation effort is comparable.

Choose Stripe for US-focused, higher-priced products where you’re comfortable managing fraud and currency. Choose Paddle for global markets where compliance simplification justifies higher fees.