Paddle vs Stripe Managed Payments
side by side.
How Paddle and Stripe Managed Payments compare on model, pricing, tax coverage and who each one is really for.
Paddle is a standalone Merchant of Record; Stripe Managed Payments is the MoR layer for teams already living in Stripe. Same rough price, different starting point.
Pick Paddle if
- ✓You want a dedicated MoR with affiliate tracking and mature B2B billing
- ✓You're not tied to Stripe and want the most complete standalone option
- ✓You need installment-adjacent or affiliate features Stripe's managed layer lacks
Pick Stripe Managed Payments if
- ✓You already run on Stripe and want to keep the same APIs and dashboard
- ✓You'd rather add MoR coverage than migrate your whole billing stack
- ✓Your product is digital goods or SaaS that fits Stripe's scope
How they actually differ
Grounded in each provider's documented model, pricing and tax coverage. Verify the details for your exact offer before signing.
Migrate to a MoR, or bolt one onto Stripe
Legal seller status and tax coverage — EU VAT, UK VAT, US sales tax — land the same either way. The fork is where you start from. Paddle is a full move to a dedicated Merchant of Record. Stripe Managed Payments is for teams already on Stripe who want MoR coverage without rebuilding their billing on someone else's platform.
The practical trade: Paddle brings more around the edges, including an affiliate system, while Stripe Managed keeps you in familiar Stripe tooling. If you're greenfield, Paddle is the more complete MoR. If you've already built on Stripe, staying put and turning on the managed layer is the lower-effort path.
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
Stripe Managed Payments
Stripe's MoR offering bundled with Stripe Tax. Targets digital goods and software with familiar Stripe APIs.
- Best for
- Digital products, SaaS already on Stripe, Software, Subscriptions
- Avoid if
- Human services not explicitly approved
- Pricing
- Approx. 5% + Stripe processing on managed flows
Product eligibility
| Product | Paddle | Stripe Managed Payments |
|---|---|---|
| SaaS | Accepted | Accepted |
| Downloadable software | Accepted | Accepted |
| Online courses | Unclear | Likely accepted |
| 1:1 coaching | Likely refused | Refused |
| Consulting | Refused | Refused |
| Communities | Unclear | Unclear |
| Digital downloads | Likely accepted | Likely accepted |
| Templates | Likely accepted | Likely accepted |
| AI tools | Accepted | Accepted |
Tax coverage
Paddle
- EU VAT
- Yes
- UK VAT
- Yes
- US sales tax
- Yes
- Canada GST/HST
- Yes
- Australia GST
- Yes
Stripe Managed Payments
- EU VAT
- Yes
- UK VAT
- Yes
- US sales tax
- Yes
- Canada GST/HST
- Yes
- Australia GST
- Yes