Tool comparisons
Stripe Alternatives for SaaS: Payment Processors and Merchants of Record, Compared
If you can register and file sales tax and VAT yourself, Stripe is still the cheapest way to charge for SaaS at 2.9% + $0.30 per US card. If you would rather not, use a merchant of record: Paddle and Polar charge 5% + $0.50 and handle tax for you, and Creem lists 3.9% + $0.40. The table compares fees and who takes on the tax.
Last updated October 2026
The comparison table
The first decision is not which brand, it is who the seller is. A payment processor like Stripe moves the money, but you are the seller: when your SaaS sells to customers in the EU, the UK, Australia or US states with economic nexus rules, the tax registration and filing are yours. A merchant of record (MoR) such as Paddle buys from you and resells to the customer, so it is the seller on the invoice and handles that tax. You pay for the convenience with a higher fee.
For a solo founder selling worldwide from day one, the higher fee is often cheaper than an accountant and a stack of VAT registrations. For a product with most customers in one country, or with revenue large enough that two percentage points is real money, the processor usually wins. This guide is not tax advice; check your own obligations.
Pricing checked on each tool’s own pricing, feature or help pages. Prices change; confirm on the vendor’s page before you buy.
| # | Tool | Best for | Free plan | Paid from | Notes |
|---|---|---|---|---|---|
| 1 | Stripe | Lowest fees when you handle tax yourself | No monthly fee | 2.9% + $0.30 per US card | Not a merchant of record by default; Billing 0.7%, Tax 0.5%; Managed Payments adds 3.5% |
| 2 | Paddle | Established merchant of record for SaaS | No monthly fee | 5% + $0.50 per transaction | Merchant of record; tax, subscriptions and billing support included |
| 3 | Polar | Developer-first merchant of record with volume tiers | Starter: $0 per month | 5% + $0.50 on Starter; 3.8% + $0.40 on Pro at $20 per month | Merchant of record; +1.5% international cards; payout costs passed through |
| 4 | Lemon Squeezy | Simple storefront with licence keys and affiliates | No monthly fee | 5% + $0.50 per transaction | Merchant of record; owned by Stripe and moving to Stripe Managed Payments |
| 5 | Dodo Payments | Wide country and payment method coverage | No monthly fee | 4% + $0.40 per US transaction | Merchant of record; +1.5% international, +0.5% subscriptions |
| 6 | Creem | Lowest merchant of record fee | No monthly fee | 3.9% + $0.40 per transaction | Merchant of record; states no international card fee |
| 7 | Gumroad | Selling a one-off digital product fast | No monthly fee | 10% + $0.50 per transaction | Merchant of record since 1 January 2025; 30% on Discover marketplace sales |
| 8 | FastSpring | Larger software sellers who want a negotiated rate | No monthly fee | Custom quote only | Merchant of record; fee set by sales from volume and geography |
Which one to pick
- You will handle tax yourself, or sell mostly in one country: Stripe. 2.9% + $0.30, the lowest base fee, and the best developer tools.
- You want tax handled with a long track record: Paddle. One fee of 5% + $0.50 covering tax and billing.
- You want a merchant of record whose fee drops as you grow: Polar. Free to start, cheaper per sale on paid tiers.
- You want the lowest merchant of record fee: Creem. 3.9% + $0.40, if you accept a young provider.
- You already run on Stripe and want a merchant of record: Stripe Managed Payments. No migration, at 3.5% on top of Stripe's fees.
A worked example helps. On a $20 monthly subscription paid with a US card, Stripe's card fee is $0.88, and adding Billing and Tax brings it to about $1.12, with the tax filing still yours. Paddle and Polar's Starter take $1.50 with tax handled, and Creem's listed fee is $1.18. On a $5 product the fixed part dominates: Paddle and Polar Starter take $0.75, which is 15 percent.
Every tool, one by one
Each entry links to the tool’s own site, the primary source for every price above. How we source facts is on the methodology page.
1. Stripe
Stripe is the default for SaaS billing: card payments at 2.9% + $0.30 in the US, plus Stripe Billing for subscriptions at 0.7% of billing volume and Stripe Tax at 0.5% per transaction to calculate tax where you are registered. It is not a merchant of record by default, so the registrations and filings remain yours. Stripe now also offers Managed Payments, its own merchant of record service for software, at 3.5% on top of the normal fees.
Pros
- Lowest base card fee in this list
- Best API, documentation and ecosystem
- Optional Managed Payments if you later want a merchant of record
Cons
- You are the seller: tax registration and filing stay with you
- Billing, Tax and international cards each add a percentage
- Managed Payments brings the total to about 6.4% + $0.30 per domestic sale
2. Paddle
Paddle is the longest established merchant of record for software. One fee of 5% + $0.50 covers checkout, subscription management, sales tax and VAT, fraud, chargebacks and billing support for your customers, with no monthly fee. The fixed $0.50 makes it expensive for cheap products, and Paddle asks products under $10 to request custom pricing.
Pros
- One all-in fee, tax handled
- Free migration help and no contract
- Long track record with SaaS
Cons
- The $0.50 part hurts on low prices: a $5 sale loses 15%
- More expensive than Stripe plus your own tax work at scale
- Products under $10 need a custom deal
3. Polar
Polar is a merchant of record built for developers, with a clean API and plans that lower the per-transaction fee if you pay a monthly fee: Starter is free at 5% + $0.50, Pro is $20 a month at 3.8% + $0.40, and higher tiers go lower. Polar's own docs say Pro breaks even at about $1,379 in monthly sales. International cards add 1.5% and Stripe's payout costs are passed through.
Pros
- Free plan, then lower fees as you grow
- Developer friendly API and docs
- Tax handled as merchant of record
Cons
- Headline fee is not final: +1.5% international, payout fees, $15 disputes
- Transaction fees are not returned when you refund
- Payouts depend on Stripe Connect Express country support
4. Lemon Squeezy
Lemon Squeezy is a merchant of record with a friendly storefront, subscriptions, licence keys, affiliates and a customer portal. Stripe bought it in 2024, and its site now carries a 2026 update about moving to Stripe Managed Payments. That makes it a reasonable choice today with an open question about where the product is heading.
Pros
- Licence keys and an affiliate program built in
- Tax handled as merchant of record
- Quick to set up, no card needed to start
Cons
- 5% + $0.50, and extra fees may apply to international, PayPal and subscription payments
- Being folded into Stripe Managed Payments, so terms may change
- Payouts only twice a month
5. Dodo Payments
Dodo Payments is a newer merchant of record that covers 220 countries and regions and more than 40 payment methods. The base fee is lower than Paddle's, but add-ons stack: international cards add 1.5%, subscriptions add 0.5%, and PayPal or buy now pay later add 3%. Read the full list before comparing.
Pros
- Lower base fee than Paddle or Lemon Squeezy
- Very wide country and payment method coverage
- Free standard payouts
Cons
- An international subscription costs about 6% + $0.40 once add-ons stack
- $30 dispute fee and $1 per refund
- Shorter track record than Paddle or Stripe
6. Creem
Creem lists the lowest merchant of record fee here at 3.9% + $0.40, says it charges no extra for international cards, and supports subscriptions, usage-based billing and revenue splits. It is young: local payment methods are marked as coming, and payouts run twice a month.
Pros
- Lowest listed merchant of record fee
- No international card surcharge, per its pricing page
- Revenue splits and usage-based billing
Cons
- Cards, Apple Pay and Google Pay only for now
- Payouts twice a month
- Young company with a short track record
7. Gumroad
Gumroad has been a merchant of record since 1 January 2025 and is the fastest way to sell an ebook, template or course. It is included as a contrast: at 10% + $0.50 on direct sales and 30% on its Discover marketplace, it is the most expensive option here, and it is built for creators rather than subscription SaaS billing.
Pros
- Fastest setup for one-off digital products
- Tax handled as merchant of record
- A marketplace that can bring new buyers
Cons
- Highest base fee here at 10% + $0.50
- 30% on Discover marketplace sales
- Weak fit for subscription SaaS and API-driven billing
8. FastSpring
FastSpring is an established merchant of record for software and SaaS with an all-in fee covering processing, subscriptions, tax, fraud and invoicing. It does not publish a rate: an account executive quotes one based on your volume and where your customers are. That suits a business with volume to negotiate, not a founder who wants to compare prices tonight.
Pros
- Long-established merchant of record for software
- All-in fee, deducted from payouts
- No monthly fee or minimum volume
Cons
- No public price
- Sales-led onboarding
- Small sellers have little room to negotiate
Common questions
What is a merchant of record?
A merchant of record is the company legally selling to your customer. It charges the card, collects and remits sales tax and VAT, and handles refunds and chargebacks, then pays you the proceeds. Paddle, Polar, Lemon Squeezy, Dodo Payments, Creem, FastSpring and Gumroad act as merchants of record. Stripe does not by default.
Is Stripe a merchant of record?
Not by default. With standard Stripe you are the seller and handle tax registration and filing; Stripe Tax at 0.5% per transaction calculates tax where you are registered. Stripe Managed Payments is Stripe's merchant of record service for software and digital goods, at 3.5% on top of normal Stripe fees.
What is the cheapest Stripe alternative?
Among merchants of record we checked on 10 October 2026, Creem listed the lowest fee at 3.9% + $0.40, then Dodo Payments at 4% + $0.40 for US cards, with add-ons for international and subscription payments. Polar's paid tiers go down to 3.4% + $0.30 for a $400 monthly fee.
What happened to Lemon Squeezy?
Stripe acquired Lemon Squeezy in 2024. In 2026 Lemon Squeezy's site announced it is moving to Stripe Managed Payments. It still sells as a merchant of record at 5% + $0.50; check its current terms before starting a new product on it.
Can I switch payment providers later?
Yes, but subscriptions are the hard part: moving active subscribers usually needs card data migration support from both providers, or asking customers to re-enter their card. Paddle advertises free migration help. Choose with the next two years in mind, not the next two weeks.
Related: Launch platforms for B2B SaaS · Privacy-friendly analytics tools · Where to launch your product. More tool comparisons: The Best Social Media Scheduling Tools for Indie Hackers, Compared · The Best GEO Tools for Tracking AI Search Visibility, Compared · The Best SEO Tools for Indie Hackers and Small SaaS, Compared · The Best Newsletter Platforms for Indie Hackers, Compared · Google Analytics Alternatives: Privacy-Friendly Web Analytics, Compared. Building one of these yourself? List your product on Toolfound, free.