The Paddle Insider’s Guide
Everything we know about Paddle in one document: what it costs, its grades, getting a refund, getting help and what else to look at. Read it here, or keep a copy.
Paddle
The Insider’s Guide
Merchant of record billing for SaaS and software
Every plan, grade, refund rule and rival among tools for selling digital products, read from Paddle’s own pages.
Made by Paddle.com Market Ltd. · checked Nov 12, 2026 · toolgpa.com
Contents
- 01WelcomeWhat it is, who it suits, its grades and the ten things to know first
- 02What it costsEvery plan, the free plan, ways to pay less and how prices have moved
- 03What it doesIts main features, where it runs, what it works with and who makes it
- 04Where it standsIts grades against its category, and whether to keep it or make your own
- 05The alternativesThe tools it is most often weighed against, side by side
- 06Quick answersThe questions people ask about it, each answered in a line or two
- 07About ToolGPAWho made this guide, what else is on the site, and how to cite it
ToolGPA put this guide together from Paddle’s own pages, its app-store listings and our grades. Every fact in it is on Paddle’s page too, where it is kept up to date. Checked Nov 12, 2026.
Part 01 · Overview
Welcome
What it is, who it suits, its grades and the ten things to know first
2.4
GPA, above 9 of the 28 other tools for selling digital products we grade
Paddle is a billing and payments service for SaaS companies and app makers that acts as merchant of record. It collects payments and subscriptions, handles sales tax and VAT filings and fraud checks, and offers a localized checkout, invoicing, subscription analytics and failed-payment recovery.
To get you started, here are 8 things to know about Paddle, taken from its own pages and our grades.
It has a sandbox and developer tools, which means setup is a developer's job.
- 1
Best for SaaS and software billing through a merchant of record
Paddle handles payments, tax, subscriptions and buyer billing support for SaaS and software, with no monthly fee and 5% + 50¢ a transaction.
- 2
There is a free plan
No monthly, migration or setup fee; Paddle keeps 5% + 50¢ per transaction. ProfitWell Metrics subscription analytics are free.
- 3
It runs on Web
Web.
- 4
Merchant of record
Paddle collects the correct tax rate, tracks filing deadlines and submits sales tax and VAT returns on the seller's behalf.
- 5
Subscription billing
Handles recurring payments and subscription management for software and digital products.
- 6
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.
- 7
A 2.4 GPA, above 9 of 28
That is against the other tools for selling digital products we grade, on value, the free plan, features, ease of use and platforms.
- 8
Keep it
To replace Paddle you would be making selling as the merchant of record, so sales tax and VAT are handled everywhere. That is not a weekend's work, with an AI app builder or without one.
Paddle at a glance
- Pricing
- Free plan
- Free plan
- Yes
- Free trial
- None stated
- Runs on
- Web
- Made by
- Paddle.com Market Ltd.
- Category
- Selling Digital Products
- Our grade
- 2.4 GPA, fair
The report card
Best for SaaS and software billing through a merchant of record
Paddle handles payments, tax, subscriptions and buyer billing support for SaaS and software, with no monthly fee and 5% + 50¢ a transaction. That is dearer per sale than the other merchants of record, it is aimed at software rather than creators, and anything under $10 needs a custom quote.
| Subject | Grade | Comment |
|---|---|---|
| Value for money | C | 5% + 50¢ a transaction with no monthly fee. That is above the 3.8% + 50¢ Freemius and 2.9% + $1 Digistore24 list, though it bundles tax and billing support. |
| Free plan and trial | B | No monthly, migration or setup fee, a developer sandbox, and ProfitWell Metrics are free. You pay only when you sell, so there is nothing to trial. |
| Features | C | Merchant of record, subscription billing, a localised checkout, Retain and metrics. It is built for SaaS and apps, not as a storefront for creators, so a creator would need another tool. |
| Ease of use | C | No store rating on record. It has a sandbox and developer tools, which means setup is a developer's job. |
| Platforms and integrations | B | Web only, with an API and developer tools, plus a RevenueCat connection for app subscriptions. |
An A is worth 4 points, a B 3, a C 2, a D 1 and an F nothing. The GPA is the average of the five.
Who Paddle is for
- 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
Who it is not for
- 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
Good to know
Good for
- SaaS and app companies selling across borders
- Teams that want tax filing handled by the payment provider
- Software sellers who want billing, tax and analytics together
Worth knowing
- 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.
Part 02 · Pricing
What it costs
Every plan, the free plan, ways to pay less and how prices have moved
1
plan
Paddle has a free plan.
No monthly, migration or setup fee, a developer sandbox, and ProfitWell Metrics are free.
Paddle Billing
$0
No monthly fee. Paddle keeps 5% + 50¢ of each transaction, covering payments, tax, subscriptions and payment-related buyer support.
The free plan
No monthly, migration or setup fee; Paddle keeps 5% + 50¢ per transaction. ProfitWell Metrics subscription analytics are free.
Read from paddle.com on Nov 12, 2026.
Part 03 · Features
What it does
Its main features, where it runs, what it works with and who makes it
1
Place it runs: Web
Merchant of record billing for SaaS and software. Here is what it does, as its own site describes it, and what it covers: public API, invoicing, reports, online store, merchant of record.
Merchant of record, subscription billing, a localised checkout, Retain and metrics.
- 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.
Where it runs
- Web
What it works with
- RevenueCat
Paddle is made by Paddle.com Market Ltd.
Part 04 · Standing
Where it stands
Its grades against its category, and whether to keep it or make your own
9/28
Other tools for selling digital products it is graded above
Paddle's GPA of 2.4 is higher than 9 of the 28 other tools for selling digital products we grade, and level with 8.
It stands best on free plan and trial (B, above 12 of 28) and worst on features (C, above 0).
Each grade against the category
Every bar is all 29 tools for selling digital products we grade, cut by the letter each got. Paddle’s own letter is outlined.
- CValue for moneyAbove 3 of 28
- BFree plan and trialAbove 12 of 28
- CFeaturesAbove 0 of 28
- CEase of useAbove 1 of 28
- BPlatforms and integrationsAbove 4 of 28
Keep it, or make your own?
Whether this is something you could build for yourself with an AI app builder, and what you would give up.
Keep it
To replace Paddle you would be making selling as the merchant of record, so sales tax and VAT are handled everywhere. That is not a weekend's work, with an AI app builder or without one.
That makes this kind of software worth paying for, not this one in particular: 11 of the 28 other tools for selling digital products grade higher.
What you could make
- Invoicing and reports: an app builder makes these well.
What you could not
- Selling as the merchant of record, so sales tax and VAT are handled everywhere.
- Checkout, card payments and sales tax handled for you.
- It plugs into other products, RevenueCat among them, and has an API.
What this rests on. Paddle’s listing: what it does, where it runs, what it plugs into and what it costs. It is a judgement about the kind of software this is. We have not built a replacement for it, and making your own means looking after it too. How we decide, and every tool’s verdict.
Part 05 · Alternatives
The alternatives
The tools it is most often weighed against, side by side
Lemon Squeezy, FastSpring, Freemius, Polar and Gumroad
The 5 tools Paddle is most often weighed against, with where each one differs from it.
- 2.8GPA
Lemon Squeezy
Free plan · from $10/mo
Merchant of record checkout for software, subscriptions and downloads.
- Paddle also covers invoicing and reports.
- Lemon Squeezy also covers email campaigns, affiliate tracking and digital downloads.
- 2.0GPA
FastSpring
Paid
Merchant of record checkout and billing for software and digital goods.
- Paddle has a free plan. FastSpring does not.
- Paddle also covers reports.
- FastSpring also covers affiliate tracking and digital downloads.
- 2.4GPA
Freemius
Free plan
Merchant of record, licensing and payments for software sellers.
- Paddle also covers invoicing and reports.
- Freemius also covers affiliate tracking and digital downloads.
- 2.6GPA
Polar
Free plan · from $20/mo
Open-source billing and merchant of record for software sellers.
- Polar is open source, according to its own site.
- Paddle also covers invoicing, reports and online store.
- Polar also covers digital downloads.
- 2.6GPA
Gumroad
Free
Sell downloads, memberships and courses for a cut of each sale.
- Only Gumroad lists iOS and Android apps.
- Paddle also covers invoicing, reports and online store.
- Gumroad also covers email campaigns, affiliate tracking and digital downloads.
Part 06 · Questions
Quick answers
The questions people ask about it, each answered in a line or two
12
Questions, each answered in a line or two
The short version of everything above, for when you only need the answer. Each one is told in full in its part of the guide.
Is Paddle free?
Paddle has a free plan. No monthly, migration or setup fee; Paddle keeps 5% + 50¢ per transaction.
How much does Paddle cost?
Paddle lists one plan. Paddle Billing: $0.
What platforms does Paddle work on?
Paddle is available on Web.
Does Paddle have an Android app?
No Android app was listed when its pages were read on Nov 12, 2026. Paddle is listed for Web.
Does Paddle have an iPhone app?
No iPhone app was listed when its pages were read on Nov 12, 2026. Paddle is listed for Web.
Is Paddle open source?
Paddle is not described as open source on its own site, as read on Nov 12, 2026.
Does Paddle have an API?
Yes. Paddle offers a public API, according to its own site.
What does Paddle integrate with?
Paddle's listing names RevenueCat. A listing names up to eight integrations, so it may connect to more.
Who makes Paddle?
Paddle is made by Paddle.com Market Ltd.
What are the alternatives to Paddle?
The closest alternatives to Paddle in our directory are Lemon Squeezy, FastSpring, Freemius, Polar and Gumroad.
How does Paddle compare with other tools for selling digital products?
Paddle's GPA of 2.4 is higher than 9 of the 28 other tools for selling digital products we grade, and level with 8.
Could I make my own version of Paddle?
To replace Paddle you would be making selling as the merchant of record, so sales tax and VAT are handled everywhere.
Where this guide comes from
The prices, plans, platforms and features were read from Paddle’s own pages on Nov 12, 2026, and the grades were given on Nov 12, 2026. Graded from this listing, whose facts were read from Paddle's own pages on 12 November 2026. Not based on using the product, and shorter than our full reviews.
Every tool we list gets five grades, A to F, each with its reason, and a GPA that averages them. How each is decided is at toolgpa.com/grades. This guide is ToolGPA’s own work; it is not made, paid for or approved by Paddle.com Market Ltd. Prices change, so check paddle.com before you buy.
Part 07 · About
About ToolGPA
Who made this guide, what else is on the site, and how to cite it
5,038
Tools graded, in 95 categories
ToolGPA grades software the way a school report grades a pupil: five subjects, a letter for each with the reason written beside it, and a GPA that averages them. Prices, plans and platforms are read from each maker’s own pages and dated, so you always know how fresh a figure is.
Every grade, review and ranking on ToolGPA is our own judgement. No company can pay for a grade or change one. Every tool on the site has a guide like this one, free to download and pass on. It all lives at toolgpa.com.
5,038
tools graded
95
categories
739
price changes on record
579
apps priced in 12 countries
What else is on toolgpa.com
- Paddle, kept up to dateEverything in this guide, with prices and grades as they are todaytoolgpa.com/tools/paddle
- How grades are givenThe rules behind every letter and every GPAtoolgpa.com/grades
- Value chartsWhat each tool costs against what it scores, for every categorytoolgpa.com/charts
- CompareAny two tools side by side, plan by plantoolgpa.com/compare
- Price changesEvery price rise and cut on record, each with its sourcetoolgpa.com/price-changes
- Prices by countryWhat apps cost on the App Store in 12 countriestoolgpa.com/prices-by-country
- Pay lessEvery public discount: yearly billing, students, nonprofitstoolgpa.com/save
- Keep or makeWhich tools are worth paying for, and which you could build yourselftoolgpa.com/keep-or-make
Scan for the live page
Prices and grades as they are today
Quoting this guide?
Please name ToolGPA and link to the live page, so readers can check the figures for themselves:
ToolGPA, "Paddle: The Insider's Guide", checked Nov 12, 2026. https://toolgpa.com/tools/paddle
Know someone choosing between tools for selling digital products?
Send them this guide: toolgpa.com/tools/paddle/guide
ToolGPA elsewhere: youtube.com/@toolgpa
See our other guides
The best-graded tools for selling digital products after Paddle, each with an Insider's Guide of its own.
- Selling Digital Products Insider's GuideEvery one of the 29 tools for selling digital products we grade, compared
- Whop Insider's GuideStorefront, checkout and payouts for paid communities and products3.4 GPA
- itch.io Insider's GuideOpen marketplace for indie games, assets and tools, pay what you want3.2 GPA
- Patreon Insider's GuidePaid memberships, a shop and community for creators and their fans3.0 GPA
Choosing software? Every tool graded, every price dated.
Compare tools at toolgpa.com ›Everything in this guide is ToolGPA’s own summary of what Paddle’s pages, its app-store listings and public reviews said on the dates shown. Grades are our judgement under the rules at toolgpa.com/grades. Every grade, review and ranking on ToolGPA is our own judgement. No company can pay for a grade or change one. Paddle is a trademark of its owner, and this guide is not made, paid for or approved by Paddle.com Market Ltd. Prices and plans change: check paddle.com before you buy.