Paddle
Merchant of Record that handles payments, tax, and compliance globally
Overview
Paddle's Merchant of Record model is its defining feature. Instead of just processing payments, Paddle becomes the legal seller of your product. This means Paddle handles sales tax, VAT, and compliance across every jurisdiction - a burden that grows exponentially complex as you sell globally.
For SaaS companies, this removes an entire category of operational headaches. You do not need to register for tax in every state or country, calculate correct rates, file returns, or deal with tax audits on international sales. Paddle handles all of it.
The trade-off is slightly higher transaction fees compared to Stripe. But for many SaaS companies, the cost of Paddle is less than the alternative: hiring tax accountants, subscribing to tax calculation services, and dedicating engineering time to compliance infrastructure.
Key Features
Merchant of Record
Paddle handles sales tax, VAT, and compliance worldwide
Subscription Billing
Flexible recurring billing with dunning and retention tools
Checkout
Localized checkout experience with optimal payment methods per region
Revenue Delivery
Net payouts with detailed revenue reporting
ProfitWell Metrics
Built-in subscription analytics and benchmarking
Retain
AI-powered cancellation flows to reduce churn
Why We Recommend Paddle
For SaaS companies selling internationally, Paddle's Merchant of Record model eliminates tax compliance complexity. The higher fees are often cheaper than the alternative of managing global tax obligations yourself.