Key Takeaways

Written by the SkillEngine team

Paddle is a time-saver for software companies that sell globally and do not want to manage tax registrations themselves. Its fees are higher than basic payment processing because tax and compliance are included.

Our Verdict

Choose Paddle if you sell software or digital products internationally and want tax handled for you. Service businesses and local sellers usually do not need a merchant of record.

What is Paddle?

Paddle acts as the merchant of record, which means it sells your software on your behalf and takes care of sales tax, VAT and payment compliance in many countries. This removes a big burden for small software teams selling internationally.

It provides checkout, subscription management, invoices and receipts, and supports many payment methods and currencies. Reports and integrations help you track revenue.

DeveloperPaddle
Best forSoftware companies selling globally
PlatformsWeb, API
Free plan / trialPay as you go
CategoryAccounting Software / Billing and Invoice Software
SkillEngine Score4.3 / 5

Key Features

Merchant of recordPaddle handles sales tax and compliance.
CheckoutOptimized checkout for software.
SubscriptionsRecurring billing and plan changes.
InvoicesAutomatic invoices and receipts.
Global paymentsMany currencies and payment methods.
Revenue reportsTrack sales and subscriptions.

Benefits

  • Less tax and compliance work
  • Sell globally faster
  • One partner for payments and billing
  • Lower operational overhead

Pricing

Paddle charges a percentage plus a fixed fee per transaction, which covers payments, tax handling and billing. Custom pricing is available for larger companies.

Prices change often. Check the official Paddle website for current plans.

FAQs

What is a merchant of record?

A merchant of record sells products on your behalf and takes responsibility for tax and payment compliance.

Who should use Paddle?

Software and digital product companies that sell to customers in many countries.

Paddle Alternatives

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