Lemon Squeezy vs Paddle

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 record

Being migrated: Stripe, which owns it, is moving its sellers to Stripe Managed Payments; support and updates have slowed. source

Ask your AI about this, with this page as the source:ChatGPT ↗Claude ↗Perplexity ↗

Which fits you

Choose Lemon Squeezy if
  • 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.

Choose Paddle if
  • Your SaaS already has steady revenue and you want to hand off global tax to a long-established MoR

Use it whenYou're moving an existing SaaS off a processor to offload global tax, and can wait out their review.

Trade-offStricter onboarding and domain review before you can sell.

At a glance

Lemon SqueezyPaddle
Used by77 makers' products · 4 open-source projects79 makers' products · 2 open-source projects
Cost at default usagerevenue $10k, payments 400 payments$700/mo Standard$700/mo Pay-as-you-go
Moved to it on GitHubpull requests since Oct 20243 from Paddle6 from Lemon Squeezy
Downloads106k/wk+37% vs npm177.8k/wk+62% vs npm
PricingPer-transaction fee; handles sales tax. · paid from 5% + 50¢ per transactionPer-transaction fee; handles sales tax. · paid from 5% + 50¢ per transaction
Free tierNoNo
Open sourceNoNo
Incidents, 90 daysfrom its status pageno public status feed3 (1 major)

Cost as you grow

They cost the same at every scale we price, up to $250k a month.

$0$500$2,000$5,000$10,000$500$1k$5k$10k$25k$50k$100k$250k
PaddleLemon Squeezyx: revenue per month (USD), other usage scaled with it · cheapest usable plan at each point, list prices · try your own numbers
The numbers, plan by plan
Revenue per monthLemon SqueezyPaddle
500$35 Standard$35 Pay-as-you-go
1,000$70 Standard$70 Pay-as-you-go
5,000$350 Standard$350 Pay-as-you-go
10,000$700 Standard$700 Pay-as-you-go
25,000$1,750 Standard$1,750 Pay-as-you-go
50,000$3,500 Standard$3,500 Pay-as-you-go
100,000$7,000 Standard$7,000 Pay-as-you-go
250,000$17,500 Standard$17,500 Pay-as-you-go

From each vendor's pricing page: Lemon Squeezy, Paddle.

Who moves from one to the other

Public pull requests on GitHub since Oct 2024 whose title says "Lemon Squeezy to Paddle" or the reverse — real code changes, by developers in general rather than makers only.

Paddle → Lemon Squeezy3 PRs
All matching pull requests on GitHub ↗

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.

On Lemon Squeezy
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.
Fuego, the makerSep 2026 ↗
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.
Intrascope.app, the makerSep 2026 ↗
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.
DockDuck, the makerSep 2026 ↗
57 more on the Lemon Squeezy page →
On Paddle
We love Paddle! They are how we were able to roll out our free accounts. We were also part of their AI Paddle Launchpad which provided an invaluable experience and community to rely on.
Basejump AI, the makerSep 2026 ↗
Merchant of record was the difference between selling to freelancers in 40 countries and doing VAT by hand. Subscriptions, tax and the customer portal in one integration.
Accordio AI, the makerSep 2026 ↗
Paddle gives indie developers a perfect payment solution, taking away the hassle of complex tax and integration issues, and simplifying everything that can be simplified.
Apple Dev Docs Translation & Enhancer, the makerSep 2026 ↗
44 more on the Paddle page →

Loved and watch-outs

Themes that recur in makers' words and Hacker News comments, each linked to what it summarises.

Lemon Squeezy
Most loved
  • 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
Watch-outs
  • 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
On Product Hunt: 4.8★, 81 reviews
Paddle
Most loved
  • As merchant of record it remits VAT and sales tax everywhere and handles refunds and disputes. PHHNHN 2
  • Subscriptions, overlay checkout, the customer portal and a sandbox for testing come in one integration. PHPH 2
  • Lets sellers in countries like Pakistan or Argentina take subscription payments from customers worldwide. PHHN
Watch-outs
  • Accounts can be frozen at review time with payouts held for months. HNHN 2
  • Onboarding verification is long and asks for company documents before you can sell. HNHN 2
  • Its percentage cut is higher than plain processors, and it does not fight chargebacks for you. HNHN 2HN 3
On Product Hunt: 4.8★, 56 reviews · mentioned most: all-in-one payment platform, global tax compliance, subscription billing

Who uses each

Used by both — often one replacing the other, or each for a different part of the product

What makers pair each with

With Paddle
StripePayment processorFull control over checkout and billing, lower fees than a merchant of record, and the widest integration ecosystem.vs Lemon Squeezy →vs Paddle →
PayPalPayment processorAdding PayPal and Venmo as a checkout option for buyers who won't type in a card.
PolarMerchant of recordDevelopers selling SaaS, subscriptions, usage-based plans or license keys.vs Lemon Squeezy →
Dodo PaymentsMerchant of recordAI and SaaS products with usage-based billing, selling globally.vs Lemon Squeezy →vs Paddle →