Dodo Payments vs Paddle
side by side.
How Dodo Payments and Paddle compare on model, pricing, tax coverage and who each one is really for.
Dodo Payments is a newer, cheaper MoR for indie SaaS and AI tools; Paddle is the established B2B option. Both refuse human-delivered services.
Pick Dodo Payments if
- ✓You ship indie SaaS, an AI tool or digital products and want a low fee
- ✓You want a modern, developer-friendly setup
- ✓You're comfortable with a younger provider in exchange for pricing
Pick Paddle if
- ✓You sell B2B and need proven invoicing and subscription tooling
- ✓You want affiliate tracking built in
- ✓Operating history matters to you or your buyers
How they actually differ
Grounded in each provider's documented model, pricing and tax coverage. Verify the details for your exact offer before signing.
New and lean versus proven
Tax coverage is a wash: both are seller of record for EU VAT, UK VAT and US sales tax, and both refuse coaching, consulting and freelancing outright. Dodo is aimed squarely at indie SaaS and AI tools, with pricing around 4% plus 40¢. Paddle sits at 5% plus 50¢ and brings a longer B2B track record plus an affiliate system Dodo doesn't match.
If you're an indie developer optimizing for fee and simplicity, Dodo is worth a serious look. If you're selling to businesses that expect mature billing, Paddle is the safer default.
Dodo Payments
Newer MoR aimed at indie SaaS, AI tools and digital products. Refuses human-delivered services.
- Best for
- Indie SaaS, AI tools, Digital products
- Avoid if
- Coaching, Consulting, Freelancing, Custom dev work
- Pricing
- Approx. 4% + 40¢ for digital products
Paddle
Merchant of Record built for software, SaaS, and AI tools. Handles global tax, billing and chargebacks under Paddle's name.
- Best for
- SaaS, Downloadable software, AI tools, B2B subscriptions
- Avoid if
- 1:1 coaching, Consulting, Services with human delivery
- Pricing
- 5% + 50¢ on most transactions
Product eligibility
| Product | Dodo Payments | Paddle |
|---|---|---|
| SaaS | Accepted | Accepted |
| Downloadable software | Accepted | Accepted |
| Online courses | Unclear | Unclear |
| 1:1 coaching | Refused | Likely refused |
| Consulting | Refused | Refused |
| Communities | Unclear | Unclear |
| Digital downloads | Likely accepted | Likely accepted |
| Templates | Likely accepted | Likely accepted |
| AI tools | Unclear | Accepted |
Tax coverage
Dodo Payments
- EU VAT
- Yes
- UK VAT
- Yes
- US sales tax
- Yes
- Canada GST/HST
- Verify
- Australia GST
- Verify
Paddle
- EU VAT
- Yes
- UK VAT
- Yes
- US sales tax
- Yes
- Canada GST/HST
- Yes
- Australia GST
- Yes