Global payments

Paddle vs Lemon Squeezy vs Polar

Paddle, Lemon Squeezy, Polar side by side: price, free tier, who each one fits and when to skip it.

Item	Paddle	Lemon Squeezy	Polar
What it does	Merchant of record for software: it sells your SaaS in its own name and handles sales tax and VAT in every country.	Merchant of record owned by Stripe for selling software, subscriptions and digital products, with sales tax and VAT handled for you.	Open source merchant of record for developers, with subscriptions, usage-based billing and license keys built on Stripe.
Best for	Founder selling a SaaS worldwide who doesn't want to register for VAT or sales tax in every country they sell to.	Solo founder launching a small SaaS or template worldwide who wants a hosted checkout and license keys working in an afternoon.	Developer selling an AI SaaS billed by usage who wants sales tax and VAT handled and lower fees as volume grows.
Skip it if	You need the money every week, since Paddle pays out once a month and holds balances under the $100 minimum.	Your country isn't on the bank payout list, since every payout then goes through PayPal at 3% (capped at $30).	Your company is in a country Polar doesn't pay out to, or your bank account is in a different country from your business.
Setup	Needs a developer. Checkout in a day or two; domain review is often automatic, but a manual one takes about 5 to 7 business days.	A little code. Checkout links work in an afternoon; add 2 to 3 business days for store approval.	A little code. Checkout in an afternoon with the SDK; up to 14 days for the review before the first payout.
Price	5% + 50¢ per transaction, taxes included	5% + 50¢ per transaction; some international payments cost extra	5% + 50¢ on Starter; from $20/month for lower rates
What it costs in practice	Estimate for a SaaS with 200 subscribers at $20/month (tax added on top for the customer): 200 × (5% of $20 + 50¢) = about $300/month in fees, with tax filing included. You keep roughly $3,700, paid once a month.	Estimate for a SaaS with 200 subscribers at $20/month, all outside the US: 200 × (7% of $20 + 50¢) = about $380/month. Two PayPal payouts hit the $30 cap, another $60. You keep roughly $3,550 of $4,000.	Estimate for a SaaS with a US LLC and 200 subscribers at $20/month, all on non-US cards. On Starter: 200 × (6.5% of $20 + 50¢) = about $360/month. On Pro: $20 + 200 × (5.3% of $20 + 40¢) = about $312/month. Stripe's payout fees add a few dollars.
Free plan	No monthly fee; you pay per transaction.	No monthly fee; you pay per transaction.	Starter has no monthly fee; you pay 5% + 50¢ per sale.
Fee per sale	5% + 50¢	5% + 50¢ (+1.5% outside the US)	5% + 50¢ (3.4% + 30¢ on Scale), +1.5% non-US
Handles taxes (merchant of record)	Yes, files and remits taxes	Yes, files and remits taxes	Yes
Subscriptions	Yes, included in the fee	Yes, +0.5% per subscription payment	Yes, plus usage-based billing
Open source	No: no	No: no	Yes: yes
Before you build	You can't go live until your website passes domain review. Most are approved automatically, but a manual review takes an estimated 5 to 7 business days and can stretch if they ask for more documents. The banned list includes pure consulting, marketplaces, exam and certification prep, medical advice, and donations or community access without real software. Check it before you build. You can't withdraw on demand. Paddle creates the payout on the 1st, sends it by the 15th, holds balances under $100, and some countries pay a $15 SWIFT fee. Local methods only show when the currency and country match: iDEAL, for example, appears only to customers in the Netherlands paying in euros. If you only list dollar prices, many buyers abroad see card and wallets only. The 50¢ per sale is flat, so cheap products hurt: on a $5 sale, Paddle keeps 15%. Products under $10 can ask for custom pricing.	The 5% + 50¢ is only the base. Sales outside the US add 1.5%, PayPal payments add 1.5% and subscription payments add 0.5%, so a renewal from Europe costs 7% + 50¢. Bank payouts only go to countries on the supported list; everywhere else you're paid through PayPal, which costs 3% per payout outside the US (capped at $30). If neither option covers your country, you can't use it. Stores selling services are usually not approved, and selling a banned product can get the store put in review or suspended without notice. Stripe is now steering the company toward Stripe Managed Payments, and Lemon Squeezy says its goal is an easy way for users to migrate there. Expect a possible move later.	Check that your country is on the payout list. Polar says that if your country doesn't appear during onboarding, it can't pay you there, and the bank account must match your business's country. Wise, Payoneer or Revolut accounts don't pass. Your first payout waits for an account review that can take up to 14 days. Later reviews kick in at sales thresholds, and payouts sit as 'held for review' meanwhile. Non-US cards add 1.5% to every plan, each dispute costs $15 even if you win, and Stripe's payout fees ($2/month plus 0.25% + 25¢ per payout, plus up to 1% currency conversion) come on top. Products that are mostly human services, physical goods or marketplaces are banned; marketing services get a closer review and may be refused.
Price checked	Checked on Oct 28, 2026 · official pricing	Checked on Oct 28, 2026 · official pricing	Checked on Oct 28, 2026 · official pricing

Prices are read from each official pricing page on the date shown and can change. Always confirm before signing up.

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