Payment Processors
vs

Stripe vs Paddle

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

StripeFee Calculator PaddleFee Calculator

Across 10 criteria, Stripe 2 Paddle 5

Stripe vs Paddle, Summarized

Pay-as-you-go processor · Merchant of record for software

Stripe

Pay-as-you-go processor

Domestic
2.9% + $0.30
International
4.4% + $0.30
Conversion
+1%
Type
Gateway

Stripe is the de facto standard for developer-friendly payments. Its API-first approach and extensive feature set make it the top choice for startups and scaling businesses. However, merchants handle their own tax compliance and chargeback disputes — significant overhead for digital product sellers.

Best for

Engineering teams who want maximum flexibility.

Stripe 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
Stripe
Paddle
Domestic fee
2.9% + $0.30
5% + $0.50
International fee
4.4% + $0.30
5% + $0.50
Currency conversion
+1%
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
Not compatible
Compatible
Founded
2010
2012

What Each One Is Great At

Stripe Strengths

  • Industry-leading API and developer experience
  • Supports 135+ currencies with automatic conversion
  • Extensive dashboard and analytics
  • Large ecosystem of third-party integrations
  • Advanced fraud detection (Radar)

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
  • 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

More Processor Comparisons

Side-by-side breakdowns of Stripe, Paddle, and the alternatives WordPress merchants weigh.

vs

Stripe vs PayPal

Fees, WordPress integration, and where each one wins.

See comparison
vs

Stripe vs Mollie

Fees, WordPress integration, and where each one wins.

See comparison
vs

Stripe vs Gumroad

Fees, WordPress integration, and where each one wins.

See comparison
← Browse all payment processors