An in-depth comparison of Stripe as compared to. Paddle vs.

To help you choose between Stripe or. Paddle vs. , this comparison guide:

• Which areas that every one of them has a solution for (e.g., payment processing, gathering and remitting taxes as well as subscription management) and which additional programs you'll need to add to your tech stack.
• Which industries and companies serve each other.

In the next section, we present a detailed comparison of key tools like checkout or reports. We also provide user reviews as well as cases studies of each service.

In a nutshell, Stripe primarily deals with processing payments, while and Paddle manage the processing of payments, managing subscriptions as well as tax collection and payment in addition to fraud prevention and more without the need for additional software.

 Table of Contents

•   What areas in the process of payment will you be able to control and what additional software will you need for a complete payment solution?
•   What kinds of companies and which industries can use the various platforms?
•   Functionality and feature comparisons
•     Payment Processing
•     Input and payment of GST, sales tax and GST
•     Checkout
•     Subscription Management
•     Reporting and Analytics
•   Pricing
•   Review by Customer

Note: Information in this article is true as of the date of publication but may change.

Which aspects of the lifecycle of payments can you handle and which other programs are you going to require for a complete payment solution?

Stripe is a payment processing company.

Stripe is most famous for its payment processing capabilities, so they assist you in collecting information about payments and have them approved. In addition, they also offer a few basic features for subscription management, fraud detection, invoicing, and more.

The additional options can meet the needs of some early-stage startup companies, however, many companies require additional options that are more powerful. In the end, you'll require additional software to manage complex recurring billing needs, accept more payment methods around the globe, or even create an individual checkout procedure. It's a good thing that most developers are able to integrate Stripe with other programs (however you must be able to pay for each program in its own way).

Many companies that utilize Stripe also need additional staff to manage taxation of sales (and VAT) as well as regulatory compliance. Although Stripe gathers sales tax and VAT on behalf of your company, you are responsible to pay it. If you remit tax in the wrong quantity, in the wrong time, or in the wrong way, you could face financial loss and penalties. (More on this subject later. )

Additionally, you'll be accountable to be up-to-date as well as observing local regulations and laws in the area where the customers reside. This can be a daunting task for any organization, and that's why most companies dedicate an entire division to this task.

: The Entire Payment Lifecycle

• Multi-payment processors (which increases authorization rates and helps conduct transactions globally).
• Flexible subscription management and automated billing tools.
• B2B digital invoicing.
• Advanced methods of fraud detection.
• Fully customizable check out (down to the last pixel).
• Analytics and reports that are detailed.
• Plus much more.

You'll be able to manage every aspect of the payments lifecycle through your control panel without having to install additional headcount or software.

Paddle: The majority of the lifecycle of a payment

Paddle has options for processing payments in addition to subscription management and fraud detection, and offers more advanced features than Stripe's offerings. However, some of Paddle's options are not as robust as 's features. In particular, the checkout options are more flexible than Paddle's checkout options (more about this in the future).

If Paddle doesn't offer the functionality it needs, you could need to add additional software or change to another solution.

Like , Paddle is a MoR.

What Types of Businesses and Which Industries Can Use Each Platform?

The Stripe App: Nearly Any Business

It is a great choice for virtually any enterprise in virtually any sector. But, SaaS companies will inevitably encounter some issues when using Stripe.

Like we said earlier, businesses using Stripe are entirely responsible for paying sales tax and VAT. The old rule was that SaaS businesses didn't need to pay taxes on sales or VAT however, a lot of states and countries are creating (and insisting on enforce) new laws that require SaaS companies to remit VAT or sales tax.

Two examples are provided:

• On January 1, 2015 on the 1st of January, 2015, the European Union began requiring software sellers to collect and pay VAT according to the location of the purchaser rather than the place of operation for the seller's company or employees.
• In 2018, the United States Supreme Court decided that states are allowed to charge sales tax on purchases made from out-of-state sellers (including sellers on the internet) however the seller is not located in any physical presence within the state that taxes.

Maintaining track of and observing constantly shifting tax law is a difficult challenge. That's why SaaS businesses (and those selling digital products) prefer a solution like that will take care of remitting sales tax as well as VAT for you.

: B2C and B2B SaaS or Digital Goods Companies

Since its inception it has served B2C and B2B companies selling SaaS Digital products as well as software downloads:

Paddle B2C SaaS

Paddle has been serving SaaS companies for about ten years. Paddle's platform is more suitable to B2C firms, however, they're currently working on adding more features that are suitable for B2B companies, such as automatized billing.

If the addition of B2B features is planned for the future, these features may be established by the time you need they. But, if you're already selling products that are B2B-related it's a good idea to consider another option with B2B functions that are fully functional ('s Digital Invoicing tool for B2B has been running for some time).

We will then compare Stripe against. Paddle vs. Paddle, according to certain characteristics.

Features and Functionality Comparisons

Payment Processing (Payment Methods, Currencies, and more)

Stripe

In order to begin processing transactions with Stripe it is necessary to create each account with the payment method and currency that you would like to accept at that particular area. Once you've set this in place, Stripe will automatically convert product prices and display the appropriate option for payment and currency at checkout.

Stripe supports 135+ currencies.

You'll be able accept credit card payments from the major credit card networks (including MasterCard and Visa), bank transfers, vouchers along with popular wallets like Apple Pay and Google Pay. However, they don't offer support for PayPal.

Stripe is also able to support transactions in person via the Stripe Terminal as well as mobile SDKs.

makes it simple for SaaS and ecommerce companies to accept transactions in all types of currencies and popular payment methods around the world. Instead of configuring every one individually, sellers can simply switch on localized payment and begin accepting international payments right away.

In contrast, Stripe automatically converts costs in local currencies for you, provides more flexibility:

• You could let your company handle your conversions, oryou can fix a price fixed for each of your products in each one of the currencies.
• You can let select the right currency according to the user's location, you can choose the appropriate currency for each location, or you allow the user to select the currency they prefer. supports 23+ currencies.

 With , customers can pay through:

• Credit cards including Visa, MasterCard, American Express, Discover, JCB as well as UnionPay.
• ACH.
• SEPA Direct Debit.
• Wire transfers.
• Wallets including PayPal, Apple Pay, Amazon, Alipay, and other.

Payments have a higher success rate when the payment gateway is located in the same place as the purchaser. Automatically routes online transactions through the payment gateway that has the best approval rates applicable to that particular payment method and location.

Furthermore, the use of several payment gateways can solve the majority of failures in payment that occur caused by network issues. If one of the payment gateways is experiencing a technical failure then it automatically attempts to retry the transaction with a different payment gateway- without your team having move a finger.

Bonus: Sift Partners as Sift

The company is at the forefront of risks and fraud (including the chargeback process). We work in partnership with Sift which is a world market leader in risk analysis as well as fraud prevention, in order to make your transactions secure. Sift utilizes machine learning and AI to:

• Improve the accuracy of fraud-related decisions.
• Enhance approval rate and result in fewer false positives.
• Stop bad actors before the transaction has even been completed.

also blocks transactions from countries and jurisdictions where companies are currently not allowed to do business.

Paddle

Paddle also utilizes multiple payment gateways and lets companies accept international payments without any setup.

Paddle is compatible with 20 different currencies, most popular credit cards (including MasterCard, Union Pay, and more) wire transfers as well as the wallet (including Apple Pay, Google Pay, PayPal, and Alipay) (although certain options are in the process of being tested.

Inputing and submitting Sales Tax as well as GST, VAT and

Stripe

Stripe has acquired TaxJar to assist you in calculating taxes on sales, VAT and GST. They only offer directions for activating taxes features as well as giving tax codes. The user is responsible for all decisions and implications that result from using these tools (e.g. understanding the classification of your product in tax laws and whether or not you have nexus, need to register, collect tax, file, and file taxes on consumption). If you're interested in knowing how to optimize tax rates, qualify for reduced tax rates, or have any other tax-related issue You'll probably be advised to talk to your tax adviser or read through the help documents.

 If you accidentally made a mistake in setting it up and collect the wrong amount (or the wrong type) of tax, you'll be accountable.

Plus, remitting sales taxes can be more complicated than simply filling in a spreadsheet and then writing a check. More and more nations have imposed additional obligations for compliance. As an example:

• Some countries like Colombia, Japan, Mexico, Serbia, and others need representatives from local governments, meaning you have an employee with physically present in the country in order to pay the tax liabilities. It can range from $5k to $15k per year.
• Certain countries such as India, Indonesia, Japan, and others require your account to be "pre-funded" meaning you must determine the tax amount that you'll be liable for and hold funds in your account until you are ready to make a tax filing (up up to 3 months ahead).
• Countries like Serbia, United Kingdom, Taiwan and many others have electronic invoices (it also applies for non-resident businesses, as well). The typical cost for companies is $2k to $5k annually. Notice: E-invoicing mandates are increasing at an alarming rate -- with the EU outlining universal electronic invoicing requirements by 2028.
• Countries like Taiwan, Indonesia, Nigeria, Vietnam, and others have you submit taxes on your income in addition to indirect tax (this could amount to $5-10k each year).

In the end, sending tax-related payments internationally isn't effortless or inexpensive. Banks that receive and corresponding are both charged fees. There's also an added risk with foreign transactions.

Therefore, although Stripe has taken a major step towards helping you collect sales tax by purchasing TaxJar, they're a long away from offering an all-in-one solution to sales tax as well as international tax.

manages the entire process for collecting and processing the sales tax, VAT along with GST for you. .

Over 20 years of working experience in the filing of more than 1,200 annual tax returns, our team ensures the correct amount (and kind) of indirect tax are collected during checkout. We also handle tax-exempt transactions within the U.S. and 0% reverse charge when permitted internationally.

Files and collects tax across 52 countries, 13 provinces as well as all 45 U.S. states that collect sales tax (five states don't collect any taxes on sales).

Then, our team remits these taxes for you, and makes sure that all necessary processes are in place in order to ensure compliance. If a state or country approaches you about tax compliance the team from our firm will guide you on the best way to handle it in the same way as copy and paste responses.

We build and maintain relationships with tax law specialists across the globe, to ensure that we're aware of tax the latest laws and regulations that evolve.

Bonus: Tax Codes Customized

Tools like TaxJar, Avalara, and other tax software provide the tax code for all kinds of services and products. But, the majority of companies at some point want to offer a product or service that doesn't fit neatly into the description of any of the tax codes provided (e.g. the possibility of the in-person event with virtual attendees and speakers). With a tool such as TaxJar it will be yourself to determine and calculate the appropriate amount and type of indirect tax since TaxJar doesn't provide the appropriate tax code for the specific situation you're in.

The issue isn't a concern for sellers as we've recently rolled out a function that lets us make unique tax codes for each product that are based on use cases -- within only a few minutes. Simply tell us about your service or product and we will create your tax code.

Paddle

Like , Paddle takes the lead in collecting and remitting sales tax, VAT as well as GST, for customers. Contrary to the other , Paddle doesn't support tax exempt cases within the U.S.

Check out

Stripe

Stripe Checkout offers a built-in payment site that can be used with any mobile device. There are a variety of choices for personalization (e.g. the font, block shapes colours, shapes etc.) but it's pretty limited. Stripe automatically translates Checkout into the correct language (35+ options) depending on the customer's location.

lets you customize every aspect of your checkout experience, with custom fields, to custom colours. You also have the flexibility to decide whether to grant your developer total control of checkout, or allow them to the system manage it on your behalf (or something in between).

This is a brief overview of the check-out options:

• Three variations: You have the option of embedding checkout directly on your webpage or make use of a pop-up checkout or redirect clients to the Web Storefront managed by .

• Store Builder Library (SBL):  It's SBL allows you to have complete control over the look and feel of your checkout up to the last pixel- regardless of which checkout method you select.
• Localized Checkout:Let customers choose their preferred language or let select the right one based on their place of residence. It supports 19plus languages.
• Built-in tracking and testing tools: With 's built-in tracking tools, you can quickly identify ways to increase the conversion rate. The majority of companies using this tool are able to boost their conversion rate by 30percent or more.
• Personalized customer service:Although we give you complete control of your shopping cart, our team is always there to provide you with the most efficient checkout experience for your business. Many companies offer individual support to their most important customers and do not provide any support for small firms. We aren't one of them. with our clients' interests. Our team is ready to assist in any way they could.

Paddle

Paddle has two options for payment options:

• Included on your website
• Popup overlay

Within these two formats, they offer 50+ options to personalize. Paddle can support 16 languages, and will automatically translate your shopping cart.

Subscription Management

Stripe

Stripe Billing includes a few different subscription options:

• Flat-rate bill (for an annual or monthly price) annual price)
• Multi-price billing (where one product is sold at various rates in various locations)
• Per seat billing (based on active users during the billing cycle)
• Usage-based bill (single unit or tiered)
• Flat-rate + overage (a mixture of flat-rate and usage-based billing)

These options work for some businesses that have only just a handful of subscription-based services However, businesses with more complicated recurring billing requirements (e.g., SaaS) often need an additional tool. In this regard, Stripe has developed a closely-knit relationship with Chargebee so that it's easier for their customers to get the subscription billing software they require. While it's easy to connect these two services, you will have be able to manage and purchase both separately.

In addition, Stripe offers a customer account management portal that allows customers to manage their accounts (both and Paddle also offer this).

offers a variety of management tools for subscriptions designed specifically to be used by SaaS firms.

Furthermore, many of these options can be created without writing any code. You can, for instance, set up:

• Automated weekly, monthly or yearly recurring billing.
• A prorated fee is billed to allow for upgrade -- or downgrade during the during the mid-cycle.
• Trials that are free or for a fee of any length.
• Trials that don't require the payment information (by by not collecting the payment information You're less likely to experience friction at check-out, which usually leads to better percentages of sales).
• Automatic or manual renewal.
• One-time discount, add-ons.
• and many more...

You will also have access to our API as well as our webhooks library to provide more possibilities to customize your site.

 A major aspect that frequently gets overlooked is whether or not your regular billing system is in line with local regulations and laws governing transactions.

As an example, it is the case that the Reserve Bank of India (RBI) is a strict regulator concerning recurring payment. At the time of writing the RBI limits automatic recurring payments to the amount of Rs15,000 (approximately $180). If the amount of a transaction is greater than this amount, the client must approve each transaction manually. Additionally, you need to file an official mandate with the RBI that outlines the procedures you need to follow for ensuring compliance. If you don't file a mandate or have customers manually approve large transactions, you could face heavy fines or be prevented from selling your products to clients within India.

Although some tools for managing subscriptions provide community updates when they discover new regulations You're the person responsible for keeping track the laws and regulations. If you fail to conform, you could be subject to penalties or even be barred from doing business in that jurisdiction. The majority of companies will require more staff in order to handle this.

 Our customers do not have to worry about it because we will take on transaction liability for you.

Our team of experts in legal matters is up-to-date on the latest legal developments, makes sure that the appropriate procedures are in place, take the initiative in audits and gives individual assistance regarding how to remain in compliance -- and all this for no cost.

Bonus: Digital Invoicing

's Digital Invoicing (DI) allows you to manage B2B orders alongside B2C purchases. With DI, you can:

• Manage and create custom quotes that are updated in real-time (including customized tags coupons, discounts, and more).
• Set quote expiration dates.
• Accept and request payment.
• Create custom notes to your prospective customer or prospect.
• Provide a self-service quote widget (this is especially useful when the customers require approval prior to buying).
• and many and more.

Paddle

Utilizing a set of webhooks as well as their APIs, Paddle supports the following subscription models:

• Fixed
• Tiered
• Per-seat
• Metered

Additionally, certain of these options are able to be mixed. As an example, you can make a tiered design where each tier allows for a different amount of seats.

Paddle allows free or paid trials. However, clients will have to submit payment details for the trial. Paddle also automatically applies prorated amounts when customers change their plan mid-cycle (e.g. or add new users or upgrade).

Analytics and Reporting

Stripe

Stripe provides a range of revenue recognition tools that assist you in reducing your expenses, including:

• Basic accounting reports such as balance sheets as well as income and balance sheets.
• Flexible revenue rules for example, such as excluding passthrough fees and auto-adjusting timings for recognition.
• Reports on the revenue overview.
• Plus...

Reports can be reviewed on your Stripe dashboard. Some reports are available to download in CSV files. CSV file. It is also possible to integrate with popular accounting tools like QuickBooks Desktop and Xero. But, the capability to transfer data from revenue recognition companies to Stripe is in the early stages of testing.

The Reporting and Analytics suite is a robust software that will help you to understand:

• What each product does to the bottom line of your business.
• Customers are more likely to leave.
• Which coupons and promotions have been successful.
• Which subscription models generate the highest amount of revenues.
• Where your customers are located.
• What currencies and payment methods customers prefer.
• And much more...

Most of this information can be found on either of the dashboards that include The income overview dashboard or the subscription overview dashboard.

The dashboard for revenue overview includes more general data such as total transactions by country, as well as net sales per product.

The dashboard for subscriptions lets you drill down to more specific information such as active customers, or monthly recurring revenue (MRR) in the course of time.

If you can't find the report you require in these dashboards, you are able to build and save your own reports. Or, you can contact us and we'll help you find (or make) the report you require. The report you want to view can be displayed on your dashboard, or downloaded as an CSV, PNG or XLSX files.

Paddle

Paddle has recently purchased ProfitWell for the purpose of providing the ability to report and analyze data. The integration, however, isn't fully completed, and there will be some discrepancies between these two platforms. For example, they will show distinct MRR.

When fully integrated, Paddle will be able to:

• Automatically track and report on key performance indicators, such as MRR.
• Check user engagement, churn and.
• Use benchmarking and segmentation tools to help you.
• and more...

Pricing

Stripe

Being a platform for DIY, Stripe's pricing works much differently than or Paddle. When using Stripe, you'll need pay for extra software and headcount to manage various aspects of the billing process, such as fraud detection, subscription management, remitting VAT and sales tax and much more.

Stripe has a price structure that currently rates the wallets and cards differently in comparison to other payment options such as ACH or SEPA.

For all the payment options listed above will allow you access to many of their services but they're not all available. As an example, Stripe charges additional fees for 3D-secure transactions, invoicing, tax features, and more.

To find out more regarding Stripe, visit their website.

You'll be able to accessibility to all of the platform (and every service) at a flat rate. We take care of transaction liability for you and also take charge of sales tax and VAT so you don't need additional software or headcount.

Our staff works in partnership with you to determine the most affordable cost depending on the number of transactions that you conduct . Additionally, you'll be charged for transactions that take place.

Paddle

Paddle advertises a flat-rate fee for their basic product that includes most of the features you will need -payment processing payment, check-out, subscriptions global taxes and tax compliance protection against fraud and reporting, among others -- but it doesn't provide everything.

As an example, Paddle collects a 10% profit to help recover abandoned carts.

For more information about Paddle, visit their site.

Customer Reviews

Stripe

Stripe currently has 4.4 rating on G2 (a well-known software review website) with over 82 reviews.

The company currently has 4.5 stars on G2 with reviews of 184+.

This is what a few of our clients said about us:

Paddle

Paddle currently has 4.5 rating on G2 along with over 145 reviews.

Final. Paddle vs. Stripe

When you're offering physical products or services, and Paddle are not an option, making Stripe the most suitable choice of three choices discussed in this article. If you are offering digital products, Stripe may not be the most suitable option as it's your responsibility in constructing a full payment platform (which costs a lot of time and money).

has been serving SaaS enterprises longer than Paddle and offers greater capabilities and features. is also better prepared to assist B2B companies.