4 ms·
Stripe is just payment processor. Paddle is similar to Gumroad they become reseller of your producs. You get payed once month (you give them invoice basically)
by omnimus 7y ago
Stripe is just payment processor. Paddle is similar to Gumroad they become reseller of your producs. You get payed once month (you give them invoice basically) and you dont have to care about invoicing. Your customers get invoice from paddle. It is for digital products only the system cant be used with anything that you ship.
Paddle also takes care of figuring out VAT for you which is a headache if you are based in EU.
I guess to some people 2% more might be worth using Stripe (stripe is 3% paddle is 5%) but for smaller players it solves real problems.
- axelfontaine 7y agoNot only that, but how do you know you are correctly invoicing and declaring sales tax in South Africa, Canada, Russia or South Korea. Using Paddle or FastSpring (worked with them for the last 4 years) makes it their problem and you can relax. Simply raise your prices by 2% and never think about the extra fee again. Well worth it! I would go even further. Selling globally and just using Stripe almost by definition makes you a small criminal in a whole bunch of countries as it is simply impossible (let alone knowing all the rules!) to file taxes correctly in each country you do business (in the local language!). Outsource it and forget about it! 2% is damn cheap!
- omnimus 7y agoGood points. I had some pains explaining how it works to local tax authorities but you do it only once.
- personjerry 7y agoHow hard is it to transition out of Paddle?
- omnimus 7y agoWell in essence it works just like any other payment processor it just does more as a bonus. Transitioning to Stripe would mean adding invoicing/billing that also takes care of figuring out VAT and having support around it. When you have fulltime accountant it probably does make sense do it all by yoirself.
- shostack 7y agoDo you own the customer relationship and data when you use them though?