Payment Processors
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Paddle vs Gumroad

Fees, WordPress integration, and where each one wins — side by side for Paddle and Gumroad.

PaddleFee Calculator GumroadFee Calculator

Across 10 criteria, Paddle 4 Gumroad 0

Paddle vs Gumroad, Summarized

Merchant of record for software · All-in-one creator storefront

Paddle

Merchant of record for software

Domestic
5% + $0.50
International
5% + $0.50
Conversion
None
Type
MoR

Paddle's merchant-of-record model is purpose-built for software and digital product sellers who want to expand globally without building a tax compliance operation. The higher base rate (5% vs Stripe's 2.9%) is frequently offset by eliminating accountant fees, VAT reporting, and chargeback management overhead.

Best for

SaaS and digital-product sellers who want zero tax overhead.

Paddle Fee Calculator

Gumroad

All-in-one creator storefront

Domestic
10% + $0
International
10% + $0
Conversion
None
Type
MoR

Gumroad's 10% all-in rate appeals to solo creators who want a zero-setup experience and are willing to pay a premium for convenience and tax handling. For WordPress users who want to stay on their own domain, WP Smart Pay's Paddle integration offers a more professional approach at a much lower effective rate.

Best for

Solo creators selling ebooks, courses, or one-off digital downloads.

Gumroad Fee Calculator

Where Each One Wins

Highlighted cells mark the side that's more favorable for a merchant on each row.

Criterion
Paddle
Gumroad
Domestic fee
5% + $0.50
10% + $0
International fee
5% + $0.50
10% + $0
Currency conversion
None
None
Monthly cost
Free
Free
Merchant of Record
Yes
Yes
Tax handling
Included
Included
Chargebacks
Included
Included
WooCommerce
Compatible
Not compatible
Easy Digital Downloads
Compatible
Not compatible
Founded
2012
2011

What Each One Is Great At

Paddle Strengths

  • Merchant of record — handles VAT, sales tax, and chargebacks globally
  • Single price everywhere (5% + $0.50, same domestic and international)
  • Automatic VAT invoice generation and emailing
  • Chargeback protection included at no extra cost
  • Subscription management, trials, and dunning built in

Gumroad Strengths

  • Merchant of record — handles tax and chargebacks globally
  • 10% fee is all-inclusive (no per-transaction fixed fee)
  • Built-in hosted storefront with audience management
  • Refund handling included
  • No technical setup required

Which One Should You Pick?

There's no universal answer — the right call depends on your model, technical capacity, and growth plan. Here's a quick decision framework.

Choose if…

Pick Paddle

  • Lower headline fees (5% vs 10%)
  • Official WooCommerce integration available
  • Works with Easy Digital Downloads
  • Paddle handles VAT, GST, and sales tax in 200+ countries
Open the Paddle Fee Calculator

Already chose Paddle?

The Easiest Way to Use Paddle on WordPress

WP Smart Pay's official Paddle plugins drop Paddle checkout into WooCommerce and Easy Digital Downloads — with automatic refunds and subscription management.

Paddle for WooCommerce Paddle for EDD

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