Dodo Payments vs Paddle (2026): which should you pick?

Pick Dodo Payments if

• Fits if you sell software and want tax and compliance handled for you
• Works for developers who want billing through an API

Look elsewhere if

• Pricey if your sales are small, since refunds cost $1 each and disputes $30
• Watch out: payouts under $1,000 carry a $5 fee and USD SWIFT payouts cost $25
• Watch out: the fee rises 1.5% on international payments and 3% on PayPal
• Skip it if you need an enterprise price, as the page lists no figures for that tier

Pick Paddle if

• Fits if you run a SaaS or software product and want tax and billing handled by someone else
• Works for companies selling subscriptions across borders

Look elsewhere if

• Pricey if you sell cheap items, as 5% + 50¢ bites and products under $10 are quoted custom
• Skip it if you sell courses or downloads as a creator, since it is aimed at software
• Watch out: buyers may see Paddle's name on their statements instead of yours
• Watch out: there is no storefront or page builder, so you build the checkout flow yourself

Dodo Payments

• The base fee is 4% + 40 cents per US card transaction, with extra charges: 1.5% for international payments, 3% for PayPal or buy-now-pay-later and 0.5% for subscriptions.
• Refunds cost $1 each and disputes $30 each; payouts under $1,000 carry a $5 fee, and USD SWIFT payouts cost $25.
• Analytics and reporting cost $10 per month and usage-based billing $1 per million events, according to the page's comparison of what it charges.
• An Enterprise tier exists but the pricing page lists no figures for it.

Paddle

• The fee is 5% + 50¢ per transaction; products under $10 in value are quoted custom pricing on request.
• It is positioned for SaaS, apps and software, not as a storefront for creators.
• As merchant of record Paddle appears on buyers' statements, so buyers may see its name rather than yours.

Dodo Payments

Merchant of record

Dodo handles cross-border tax calculation, filing and reporting, which the page says covers 190+ countries.

Subscriptions and billing models

One-time payments, subscriptions with add-ons, usage-based billing priced per million events, and credit-based billing.

Storefront and delivery

A no-code storefront, automated license key generation and delivery, and secure digital product delivery after purchase.

Local payment methods

Cards, Apple Pay, Google Pay, PayPal, buy-now-pay-later, ACH and SEPA direct debit, and 80+ currencies through adaptive currency.

Recovery tools

Abandoned cart recovery, subscription dunning and payment retries, billed at 5% only on revenue that is recovered.

Developer SDKs and API

SDKs, an API reference, webhooks, MCP servers and framework adapters, with an affiliate feature for distribution.

Paddle

Merchant of record

Paddle collects the correct tax rate, tracks filing deadlines and submits sales tax and VAT returns on the seller's behalf.

Subscription billing

Handles recurring payments and subscription management for software and digital products.

Localized checkout

A checkout that adapts to the buyer's location, plus invoices that can be sent internationally without local tax handling by the seller.

Retain

Recovers failed payments and reduces cancellations by acting on subscriptions over their lifecycle.

ProfitWell Metrics

Real-time subscription analytics, described on the pricing page as free.

Developer sandbox

A billing sandbox and developer documentation are available for testing an integration before launch.

Dodo Payments

• Standard Plan$0

  No fixed costs. 4% + 40 cents per transaction on US cards and wallets, plus 1.5% on international payments, 3% extra on PayPal or buy-now-pay-later and 0.5% extra on subscriptions.

Paddle

• Paddle Billing$0

  No monthly fee. Paddle keeps 5% + 50¢ of each transaction, covering payments, tax, subscriptions and payment-related buyer support.