Payment providers for SaaS and digital products: guides and comparisons
A payment provider should fit what you sell, where your business is based, and how much of the payment work you want to handle. Start by deciding who should be the seller, then compare the providers that support your product and country.
Use the payment picker for recommendations, a fee calculator, and country checks. Use the guides below when you want to understand a provider or choose between two.
Should you use a Merchant of Record or a payment processor?
| Question | Merchant of Record | Direct payment provider |
|---|---|---|
| Who sells to the customer? | The provider, for covered transactions. | Your company. |
| Who handles indirect tax? | The provider handles covered sales in supported markets. | You arrange registration, calculation, filing, and payment where required. |
| What do you still handle? | Your product, product support, books, and company taxes. Fees and obligations still apply. | Those responsibilities plus the seller's payment and tax operations. |
| Where should you start? | Check product eligibility and payout terms. | Check business-country support and the extra services you need. |
For a small software business selling across countries, an MoR can reduce the indirect-tax work. A direct processor can suit a business that already manages that work or needs a broader product scope and more checkout control. Read the full explanation of these models before comparing rates.
Payment provider guides
These guides cover fees, seller eligibility, integration choices, and the tradeoffs that can rule a provider in or out.
- Stripe Payments: fees, tax responsibilities, and alternatives
Stripe Payments lets your business take payments through a hosted checkout, payment links, or a custom integration. You stay the seller. It fits businesses that want control over checkout and can handle their own tax and payment operations.
- Paddle: Merchant of Record fees and when to use it
Paddle is a Merchant of Record for approved software and digital products. It becomes the seller to your customer and handles payments and indirect tax for covered transactions. It is worth considering when international software sales would otherwise leave your team managing tax across markets.
- Polar: pricing, usage billing, and Merchant of Record tradeoffs
Polar is a Merchant of Record built around software and developer products. Its APIs, usage billing, and product benefits make it a useful option when payment events need to connect closely to what your app gives a customer.
- Creem: fees and Merchant of Record guide for SaaS
Creem is a Merchant of Record for approved SaaS, AI tools, and digital products. Its public 3.9% + $0.40 rate is worth comparing when you want indirect-tax handling without a monthly platform plan.
- Lemon Squeezy: fees, digital products, and alternatives
Lemon Squeezy combines a Merchant of Record checkout with tools for selling digital products, subscriptions, and software licenses. It is worth considering when you want payment collection and product delivery in one platform.
- Gumroad: selling fees, Discover, and digital product alternatives
Gumroad is a creator-commerce platform for selling downloads, courses, memberships, and other eligible digital products. It combines a storefront and delivery with Merchant of Record tax handling. Its direct-sale fees and Discover marketplace commission need separate comparisons.
Compare two payment providers
Each comparison uses the same sales assumptions and explains when you would choose either provider.
- Stripe vs Paddle: fees, taxes, and which to choose for SaaS
Compare Stripe Payments and Paddle for SaaS: who is the seller, tax responsibilities, subscription costs, and fees on the same $10,000 month.
- Polar vs Paddle: plans, usage billing, and SaaS tradeoffs
Compare Polar and Paddle as Merchants of Record, including paid plans, international fees, developer billing features, and the same worked sales example.
- Creem vs Paddle: fees and Merchant of Record comparison
Compare Creem and Paddle on the same sales numbers, with tax-inclusive fees, SaaS eligibility, billing requirements, and payout questions to check.
- Lemon Squeezy vs Gumroad: fees and selling digital products
Compare Lemon Squeezy and Gumroad for downloads, software, and memberships. See direct card costs, stacked fees, and why Discover needs a separate comparison.
More providers in the picker
The picker covers 15 providers in total. These additional providers have profiles in the tool; the links below open their official pricing pages.
- Adyen · Your company stays the seller
- Airwallex · Your company stays the seller
- Braintree · Your company stays the seller
- Dodo Payments · Merchant of Record
- FastSpring · Merchant of Record
- Mollie · Your company stays the seller
- PayPal Checkout · Your company stays the seller
- Square · Your company stays the seller
- Stripe Managed Payments · Merchant of Record
How to narrow the list
First check whether your business can receive payouts. Global buyer coverage does not establish seller eligibility. Next check whether the provider approves what you sell. Only then compare checkout, subscriptions, and cost.
Use your average order value and buyer mix. A fixed charge matters much more on a $5 product than on a $500 product. Check whether fees apply to tax-inclusive totals and whether international cards, subscriptions, or PayPal add charges.
For a live product, include the cost of switching. Subscription payment methods, renewal dates, discounts, and invoice history need a migration plan.
How these guides are maintained
Pricing and operational claims come from the official sources linked in each guide. Worked fee examples use the payment picker's shared rules. A rate for US domestic cards is labeled as such, and a custom quote stays a custom quote.
The guides explain published capabilities and terms; they do not claim that every provider has been tested in production. Country coverage in the picker carries its own review date. Check the provider's current agreement before committing your business to it.