Dodo Payments vs Lemon Squeezy
Two merchant of record options for payments. When each fits, what it costs, who moves from one to the other, and what makers who chose it say.
Lemon SqueezyMerchant of recordBeing migrated: Stripe, which owns it, is moving its sellers to Stripe Managed Payments; support and updates have slowed. source
Which fits you
- Your AI product charges by usage and sells to customers in many countries
Use it whenYou charge for usage and want metering and sales tax handled by the same provider.
Trade-offA younger merchant of record, with a shorter track record and fewer integrations than Paddle or Lemon Squeezy.
- You're a developer selling SaaS subscriptions or license keys worldwide and don't want to register for tax
Use it whenYou want to start selling a download or subscription this weekend from a hosted checkout.
Trade-offStripe is moving this work to Stripe Managed Payments and plans to migrate Lemon Squeezy users there; support and updates have slowed.
At a glance
| Used by | 30 makers' products · 4 open-source projects | 77 makers' products · 4 open-source projects |
|---|---|---|
| Cost at default usagerevenue $10k, payments 400 payments | $560/mo Standard | $700/mo Standard |
| Downloads | 75.8k/wk4.3× vs npm | 106k/wk+37% vs npm |
| Pricing | Per-transaction fee; handles sales tax. · paid from 4% + 40¢ per transaction | Per-transaction fee; handles sales tax. · paid from 5% + 50¢ per transaction |
| Free tier | No | No |
| Open source | No | No |
Cost as you grow
At $500 a month Dodo Payments costs less ($28 vs $35); and still does at $250k a month ($14,000 vs $17,500).
The numbers, plan by plan
| Revenue per month | Dodo Payments | Lemon Squeezy |
|---|---|---|
| 500 | $28 Standard | $35 Standard |
| 1,000 | $56 Standard | $70 Standard |
| 5,000 | $280 Standard | $350 Standard |
| 10,000 | $560 Standard | $700 Standard |
| 25,000 | $1,400 Standard | $1,750 Standard |
| 50,000 | $2,800 Standard | $3,500 Standard |
| 100,000 | $5,600 Standard | $7,000 Standard |
| 250,000 | $14,000 Standard | $17,500 Standard |
From each vendor's pricing page: Dodo Payments, Lemon Squeezy.
What makers say
Makers on using it for payments, from Product Hunt and Starter Story interviews, each linked to the source. Products with a page of their own and fuller notes first.
Dodo Payments handles the payment and licensing side of Kapshot, which has made it much easier for me to sell the product and manage access without building an entire billing system myself.
As a solo maker based in Korea, Stripe wasn't available. Dodo Payments offered global payment processing with simple integration and fair pricing — no complex merchant-of-record setup needed.
Handles payments and VAT/tax compliance out of the box, which matters for a solo indie developer selling globally. Setup had some rough edges but gets the job done.
Thanks to LemonSqueezy, implementing payments was super easy. I can create discount codes effortlessly, and I don’t even have to worry about handling the bureaucratic side of things.
Perfect fit for SaaS payments and licensing. Handles taxes, subscriptions, coupons and invoicing for us so we can focus on the product instead of building billing from scratch.
Selling worldwide as a solo dev would've meant drowning in tax and licensing. Lemon Squeezy's Merchant-of-Record model let me ship DockDuck globally and never touch VAT.
Loved and watch-outs
Themes that recur in makers' words and Hacker News comments, each linked to what it summarises.
- As merchant of record it handles VAT, sales tax and invoicing across countries for solo developers. PH
- Pays individuals directly without a registered company, including in regions Stripe does not serve. PHHN
- Built-in license keys and activation save desktop and digital-product sellers from building licensing. PH
- Store applications get rejected without a specific reason or sit in review for weeks. HNHN 2HN 3HN 4
- Since the Stripe acquisition, development looks stalled and the service feels like it has declined. HNHN 2HN 3HN 4
- Fees end up higher than expected, with hidden extras on top of the headline rate. HNHN 2
