Key Takeaways
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.
| Developer | Paddle |
|---|---|
| Best for | Software companies selling globally |
| Platforms | Web, API |
| Free plan / trial | Pay as you go |
| Category | Accounting Software / Billing and Invoice Software |
| SkillEngine Score | 4.3 / 5 |
Key Features
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.