Stripe Billing vs. Lemon Squeezy / Paddle (MoR)
Stripe vs Lemon Squeezy vs Paddle · the 2026 SaaS payments call
Self-handling tax is a job. Merchant-of-Record (MoR) providers take it off your plate for a higher fee. Here's when each trade-off works.
option AStripe Billingoption BLemon Squeezy / Paddle (MoR)serviceWebsites, web apps & online shops
→ Verdict
Stripe Billing wins for established SaaS with tax/accounting infra. Lemon Squeezy / Paddle win for indie devs and SaaS < $5M ARR who want one-click global compliance.
Pick a topic
When to pick which
A · Pick this when…
Stripe Billing
- 01You already have an accountant handling tax across regions
- 02You want to own the payment relationship (refunds, disputes, data)
- 03ARR is > $5M and the fee delta adds up
B · Pick that when…
Lemon Squeezy / Paddle (MoR)
- 01Solo founder / small team wanting zero tax complexity
- 02Selling globally from day one without entity setup
- 03US LLC or EU sole-prop without VAT registration in 30 countries
Factors to weigh
Factor-by-factor
| Factors to weigh | Stripe Billing | Lemon Squeezy / Paddle (MoR) |
|---|---|---|
| Fee (blended) | ~2.9% + $0.30 | ~5-7% all-in (MoR) |
| Global tax / VAT | DIY (Stripe Tax helps) | Fully handled |
| Subscription logic | Most flexible | Lemon less flexible, Paddle solid |
| Failed payment recovery | Stripe Smart Retries + Billing | Dunning built-in |
| Dispute handling | Merchant responsibility | MoR absorbs |
| Payout schedule | Instant - weekly | Bi-weekly / monthly |
| We recommend | Scale / enterprise | Indie / startup global |
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