Payment Processors
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Paddle vs Polar.sh

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

PaddleFee Calculator Polar.shFee Calculator

Across 10 criteria, Paddle 2 Polar.sh 2

Paddle vs Polar.sh, Summarized

Merchant of record for software · Modern MoR for developers

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

Polar.sh

Modern MoR for developers

Domestic
4% + $0.40
International
4% + $0.40
Conversion
None
Type
MoR

Polar.sh is a promising newcomer targeting the open-source funding and indie developer space. Its Stripe-like API with merchant-of-record services at 4% (vs Gumroad's 10%) is compelling, but the lack of a WordPress integration means it's not accessible to the WordPress audience without custom development.

Best for

Indie devs and OSS maintainers who want a Stripe-feel MoR.

Polar.sh Fee Calculator

Where Each One Wins

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

Criterion
Paddle
Polar.sh
Domestic fee
5% + $0.50
4% + $0.40
International fee
5% + $0.50
4% + $0.40
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
2023

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

Polar.sh Strengths

  • Modern developer-first API with Stripe-like feel
  • GitHub-native integration for funding OSS projects
  • Merchant of record with 4% flat rate (lower than Gumroad)
  • Chargeback and tax handling included
  • Built-in subscription management

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

  • 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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