Paddle vs Polar
side by side.
How Paddle and Polar compare on model, pricing, tax coverage and who each one is really for.
Paddle is the established Merchant of Record for B2B software; Polar is the cheaper, developer-first newcomer. Both refuse human services. The choice is mostly maturity versus price.
Pick Paddle if
- ✓You want a proven MoR with years of B2B billing behind it
- ✓You need affiliate tracking, and enterprise-shaped invoicing
- ✓Your buyers are businesses that expect polished billing
Pick Polar if
- ✓You're a developer or open-source maintainer who wants a clean API
- ✓Fee matters: 4% + 40¢ undercuts Paddle's 5% + 50¢
- ✓You're shipping indie SaaS or AI tools and want something modern
How they actually differ
Grounded in each provider's documented model, pricing and tax coverage. Verify the details for your exact offer before signing.
Same job, different stage
Strip out the marketing and the tax handling matches: legal seller status, EU VAT, UK VAT, US sales tax. What's left is age and price. Paddle has a long track record with B2B software and the billing depth that comes with it. Polar is newer, cheaper at 4% plus 40¢, and clearly aimed at developers and open-source maintainers.
Polar doesn't (yet) carry Paddle's affiliate system. If affiliates or referral tracking are part of how you sell, that's a real gap. If you just want a low-fee checkout that a developer can wire up in an afternoon, Polar is the more natural fit.
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
Polar
Developer-first MoR supporting open-source maintainers, SaaS, AI tools and digital products.
- Best for
- Open-source maintainers, Indie SaaS, AI tools, Developer products
- Avoid if
- Coaching, Consulting
- Pricing
- 4% + 40¢ per transaction
Product eligibility
| Product | Paddle | Polar |
|---|---|---|
| SaaS | Accepted | Accepted |
| Downloadable software | Accepted | Accepted |
| Online courses | Unclear | Accepted |
| 1:1 coaching | Likely refused | Refused |
| Consulting | Refused | Refused |
| Communities | Unclear | Likely accepted |
| Digital downloads | Likely accepted | Likely accepted |
| Templates | Likely accepted | Likely accepted |
| AI tools | Accepted | Unclear |
Tax coverage
Paddle
- EU VAT
- Yes
- UK VAT
- Yes
- US sales tax
- Yes
- Canada GST/HST
- Yes
- Australia GST
- Yes
Polar
- EU VAT
- Yes
- UK VAT
- Yes
- US sales tax
- Yes
- Canada GST/HST
- Verify
- Australia GST
- Verify