Paddle vs Polar (2026): which should you pick?

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

Pick Polar if

• Fits if you sell software or SaaS subscriptions and are comfortable with an API and webhooks
• Works for AI products that bill by tokens, credits or other usage

Look elsewhere if

• Skip it if you're a creator who wants a store page, email and affiliates
• Pricey if you get many disputes, as each costs $15 whatever the outcome, and a high chargeback rate can get you suspended
• Watch out: Stripe payouts cost $2 a month plus 0.25% + $0.25 each, and currency conversion adds 0.25% to 1%
• Tight if you're small: Pro at $20 a month only pays off above about $1,379 in monthly sales
• Pricey if buyers are abroad, as non-US cards add 1.5% to each transaction

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.

Polar

• Starter keeps 5% + 50¢ of each transaction, and non-US cards add 1.5%; the paid plans only lower that fee once sales are high enough.
• Each dispute costs $15 whatever the outcome, and Polar may suspend accounts whose chargeback rate gets too high.
• Payouts through Stripe cost $2 a month plus 0.25% + $0.25 per payout, and currency conversion adds 0.25% to 1%.
• Organizations created before May 27, 2026 keep an Early Member rate of 4% + 40¢ until they move to a paid plan.

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.

Polar

Merchant of record

Polar resells your product in over 100 markets and is responsible for payments, sales tax and VAT, fraud, refunds and chargebacks.

Subscriptions and usage billing

Subscriptions, seat-based and unit-based pricing, prepaid credits and metered usage from live event meters, combined on one invoice.

Automated benefits

Deliver file downloads up to 10GB each, license keys, private GitHub repository invites, Discord roles, feature flags or a shared Slack channel.

Cost and margin insights

Attach inference or other costs to usage events to see gross margin per customer beside revenue.

Checkout options

Custom checkout fields, discounts, free trials and tax-inclusive pricing, with a Python SDK, webhooks and an API for developers.

Open source and MCP

Polar's code is open source, and its MCP server lets Claude, Cursor or ChatGPT query customers and revenue or create products and refunds.

Paddle

• Paddle Billing$0

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

Polar

• Starter$0

  All features to sell, standard support. Polar keeps 5% + 50¢ of each transaction, plus 1.5% for international cards.

• Pro$20

  per month

  Fee drops to 3.8% + 40¢ a transaction, with prioritized support and preview access to new features. Pays off above about $1,379 a month in sales.

• Growth$100

  per month

  Fee drops to 3.6% + 35¢ a transaction, with prioritized support. Pays off above about $5,634 a month in sales.

• Scale$400

  per month

  Fee drops to 3.4% + 30¢ a transaction, with a shared Slack channel, P1 support and single sign-on.

Paddle

No public discounts listed.

Polar

• Startups

  Scale plan free for a year for AI startups

  Polar's Startup Program gives early-stage AI startups the Scale plan free for twelve months, with its 3.4% + 30¢ fee, by application.