Payment Processors
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PayPal vs Paddle

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

PayPalFee Calculator PaddleFee Calculator

Across 10 criteria, PayPal 2 Paddle 4

PayPal vs Paddle, Summarized

Universal consumer wallet · Merchant of record for software

PayPal

Universal consumer wallet

Domestic
3.49% + $0.49
International
4.99% + $0.49
Conversion
+4%
Type
Gateway

PayPal remains a fixture of consumer e-commerce due to its brand recognition and existing user base. For merchants selling digital products globally, the 4% currency conversion fee and lack of merchant-of-record services make it a costly choice compared to alternatives like Paddle.

Best for

Stores with consumer buyers who already use PayPal.

PayPal Fee Calculator

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

Where Each One Wins

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

Criterion
PayPal
Paddle
Domestic fee
3.49% + $0.49
5% + $0.50
International fee
4.99% + $0.49
5% + $0.50
Currency conversion
+4%
None
Monthly cost
Free
Free
Merchant of Record
No
Yes
Tax handling
You handle
Included
Chargebacks
You handle
Included
WooCommerce
Compatible
Compatible
Easy Digital Downloads
Compatible
Compatible
Founded
1998
2012

What Each One Is Great At

PayPal Strengths

  • Massive consumer brand recognition — buyers trust PayPal
  • 400M+ active accounts globally
  • Express Checkout enables one-tap purchasing
  • Strong buyer protection reputation
  • Multiple funding sources (bank, card, balance)

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

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

  • Merchant of Record — tax + chargebacks bundled in
  • 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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