Some tools in this article have affiliate relationships with OperDrive. This never influences what we write, what we recommend, or how tools are ranked. Our research determines that. Nothing else.
THE SHORT ANSWER
If you sell anywhere and need the best developer infrastructure → Stripe
If your customers trust PayPal and conversion matters more than fees → PayPal
If you sell SaaS or digital products globally and do not want to handle tax → Paddle
Most people choosing between them are asking the wrong question. It is not "which is cheapest" — it is where your customers are and whether you want to handle global tax yourself.
AT A GLANCE
| Stripe | PayPal Checkout | Paddle | |
|---|---|---|---|
| Standard fee | 2.9% + 30¢ | 3.49% + 49¢ | 10% (or 5% + 50¢ high-volume) |
| Currency conversion | +1% | +3-4% | included |
| Tax handling | manual/plugins | manual/plugins | automatic globally |
| Developer API | best in class | good | good |
| Best for | Tech, SaaS, ecom | B2C, trust-sensitive | Global SaaS, digital |
| OperDrive deal | Standard | Standard | Standard |
Stripe — for US-focused businesses
If you sell primarily to US customers and want the lowest fees, Stripe wins. It charges 2.9% + 30¢ per successful card charge, with no monthly or setup fee. International cards add 1.5% and currency conversion adds 1%. On $10,000/month in US card revenue, expect roughly $320/month in fees. Stripe's custom pricing for businesses over $80,000/month significantly reduces rates — many negotiate 2.2% + 25¢ at $200K/month.
PayPal — for B2C trust
If your customers are B2C consumers who trust PayPal, and one-click conversion is worth the premium, PayPal is the answer. It charges 3.49% + 49¢ per transaction — consistently higher than Stripe. On $10,000/month, that is roughly $399/month — $79 more than Stripe for the same volume. Currency conversion adds 3-4%, well above Stripe's 1%. PayPal's justification is conversion: 40-60% of US consumers have a PayPal account and check out faster with saved details. If PayPal lifts your checkout conversion from 3% to 4.5%, the extra revenue offsets the higher fee for B2C products.
Paddle — for global SaaS
If you sell SaaS or digital products globally and do not want to deal with tax, Paddle is the answer. It charges 10% of revenue (or 5% + 50¢ for qualified high-volume products) as a merchant of record — it sells your product on your behalf and handles all global tax. For that 10% it covers VAT, GST, and US sales tax automatically, calculated, collected, and remitted. The 10% is expensive next to Stripe or PayPal but cheap next to hiring a tax accountant, paying for tax software, and managing global filings manually.
When it actually pays off
$10,000/month:
| Stripe | PayPal | Paddle | |
|---|---|---|---|
| Processing fee | ~$320 | ~$399 | $1,000 (10%) |
| Tax compliance | $0–$99 | $0–$99 | included |
| US-only total | ~$320 | ~$399 | $1,000 |
| Global SaaS total | ~$520–720 | ~$599–798 | $1,000 all-in |
For US-only businesses, Stripe wins clearly. For global SaaS selling to the EU, UK, Australia, and Canada, Paddle's all-in cost approaches competitive levels because it eliminates tax compliance entirely.
What nobody else mentions
Paddle's merchant-of-record model means Paddle is legally the seller — not you. For international founders selling globally (including Indian founders), this eliminates complex cross-border tax registration. Paddle handles all of it.
Stripe's Link (one-click checkout) now has 60 million+ US users with saved payment details, significantly narrowing PayPal's historical one-click conversion advantage.
PayPal's Venmo integration matters for US B2C — younger US consumers prefer Venmo, included in PayPal Checkout. Stripe does not offer this natively.
Lemon Squeezy (acquired by Stripe in 2024) is a Paddle alternative using Stripe's infrastructure, offering merchant-of-record functionality at lower fees than Paddle on lower volumes.
FAQ
Is Stripe cheaper than PayPal?
Yes. Stripe's 2.9% + 30¢ is lower than PayPal's 3.49% + 49¢, and Stripe's currency conversion (1%) is far cheaper than PayPal's (3-4%).
What is Paddle and why does it cost 10%?
Paddle is a merchant of record that handles all global tax compliance for you. The 10% replaces the cost of tax software, accountants, and manual VAT/GST filings.
Which payment processor is best for global SaaS?
Paddle, if you want to avoid handling international tax. Stripe, if you can manage tax separately and want lower fees.
Can international founders use Stripe?
Yes, in supported countries. For those selling globally who want to avoid cross-border tax registration, Paddle's merchant-of-record model is often simpler.
Payments are the foundation of your revenue stack.
If you want to know which payment setup belongs in your specific business — that is what OperDrive does. Your Stack. Precisely.
What remains is not a suggestion.