Paddle API
Merchant of Record payments for SaaS, handles global tax compliance
Paid Only
✓ Verified
🇪🇺 European
Paddle is a Merchant of Record payment platform built specifically for software and SaaS businesses. As MoR, Paddle handles VAT/GST collection and remittance across 245 countries, eliminating the tax compliance burden for global software sales. The API covers subscriptions, one-time payments, trials, upgrades, and refunds. Pricing is 5% + $0.50 per transaction — higher than Stripe but the all-in tax compliance is included. The ideal choice for indie developers, SaaS companies, and software businesses selling internationally who want to avoid complex tax obligations.
API Details
Auth Method
API Key
Pricing Model
Paid Only
Free Tier
No (5% + $0.50 per transaction)
Rate Limit
1,500 requests/hour
Format
REST / JSON
Versioning
v2
SLA / Uptime
99.9%
Compliance
PCI DSS, GDPR, global tax compliance (MoR)
Geographic Restrictions
245 countries as Merchant of Record
Last Verified
2026-02-20
Categories
Frequently Asked Questions
As a Merchant of Record (MoR), Paddle acts as the legal seller of your software globally. This means Paddle handles VAT/GST collection and remittance in 245 countries, fraud liability, refunds, chargebacks, and payment compliance u2014 not you. You receive the net amount after fees. This eliminates enormous tax and legal overhead for software businesses selling internationally.
Paddle charges 5% + $0.50 per transaction for the Pay-as-you-go plan. This is higher than Stripe (2.9% + $0.30), but includes all global tax collection and remittance u2014 which would cost thousands in accountant fees if done manually. For businesses selling to multiple countries, the total cost including tax compliance is often lower than Stripe + tax tools.
Yes u2014 Paddle is designed specifically for subscription software and SaaS. It handles plan creation, trials, upgrades, downgrades, cancellations, dunning, and revenue recognition. Its dashboard provides real-time MRR, churn, and LTV metrics. The built-in tax handling is the key advantage over Stripe for SaaS companies with global customers.
Paddle Billing is the newer API, launched in 2023, with a redesigned developer experience and more flexible subscription management. Paddle Classic is the legacy product with broader feature maturity. New integrations should use Paddle Billing. If you are using Paddle Classic, migration tools are available but not required.