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Stripe vs PayPal vs Paddle: payment fees compared

Published 2026-05-23 · reference prices, verify before budgeting

Taking payments online means giving up a slice of every sale. The headline rates are close; the real difference is what each one does for you.

The fees

Stripe: 2.9% + $0.30 per card charge, no monthly fee, best-in-class API.
PayPal: similar ~2.9% + fixed fee, plus buyer trust and PayPal balance payments.
Paddle / Lemon Squeezy: higher cut (~5%+), but they're a merchant of record — they handle global sales tax/VAT for you.

The hidden cost: tax

For a SaaS selling worldwide, calculating and remitting VAT/sales tax in dozens of jurisdictions is a real burden. Stripe gives you the rails (and Stripe Tax as an add-on); Paddle takes a bigger percentage but makes the tax problem disappear. For a solo founder, that can be worth every basis point.

How to choose

Selling mostly domestically, or have an accountant? Stripe's lower fee and superb API win. Selling software globally and want zero tax admin? Paddle or Lemon Squeezy. Want maximum buyer trust at checkout? Offer PayPal alongside cards. Many businesses use Stripe + PayPal together.

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Reference estimates. Not affiliated with any provider.