Paddle

paddle.com ↗

Sell software and subscriptions through a merchant of record

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80/100
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Ask SI about Paddle

Answers use saved listing facts and recorded sources.
Homepage screenshot
Screenshot of the Paddle homepage

What it does

Paddle provides checkout, subscription billing and payment administration for software businesses. It acts as the seller to the buyer under its merchant-of-record arrangement, while the software company remains responsible for its product and technical support. The standard offer charges per checkout transaction, with account, domain and business eligibility checks before live selling.

Paddle is aimed at software sellers, including business software, consumer applications and games. Its merchant-of-record arrangement places Paddle in the sale to the buyer; Paddle says it handles transaction taxes and payment administration within that role. You still provide the software and its technical support.

Set up the catalog through Catalog > Products > New product. Enter the name and tax category, save it, then add a price from the product's Prices section. A product needs a related price before it can be sold. Prices hold the currency, billing interval and any trial, with optional country-specific overrides.

A developer can connect those price identifiers to a Paddle.js checkout overlay. The checkout guide separates sandbox and live credentials and requires an approved default payment-link domain for live use. If a checkout contains several recurring items, their billing intervals must match; a monthly and an annual subscription cannot be combined in that checkout.

Account approval and costs

Live onboarding includes domain review and identity verification. Registered businesses also undergo business verification; individuals and sole traders have a different route. For domain approval, the website should clearly show the product, prices, company identity and relevant terms, privacy and refund pages. Use My Account > Settings > Website approval to submit it.

Check Paddle's unsupported-country list and acceptable-product guidance before integration. Physical goods and human services are outside its intended software offering, and customer reach is not the same as seller eligibility.

The standard advertised price is 5% plus 50¢ per checkout transaction, with custom offers for qualifying businesses. Paddle does not charge a standard monthly or migration fee. Its supplier terms separately describe currency-conversion margins, certain international payout charges and chargeback-related costs, so the headline transaction rate should not be treated as every possible deduction.

The terms generally provide for monthly payout once the applicable threshold is reached, subject to the account arrangement. Check the settlement currency and payout route alongside the checkout fee when estimating what reaches the business bank account.

Strengths

  • Products can have distinct recurring prices, trials and country-specific price overrides.
  • Separate sandbox and live credentials support preparing checkout before launch.
  • Checkout and subscription billing are provided within the same software-selling service.

Watch out for

  • Physical goods and human services fall outside the intended product scope.
  • Live selling requires account and website approval.
  • Recurring items with different billing intervals cannot share one checkout.

Best for

  • Software businesses selling subscriptions internationally
  • Developers integrating software checkout and recurring billing
  • SaaS businesses considering a merchant-of-record arrangement

Sources