Stripe vs Polar vs Lemon Squeezy vs Paddle (2026): Payments for Indie SaaS

Last checked: Oct 27, 2026

You've built the app, and now it has to take money. Start by deciding who the seller is. With Stripe on its own, your business is the seller, so sales tax and VAT where your buyers live are yours to register for and file. A merchant of record (MoR) such as Polar, Lemon Squeezy, Paddle, Dodo Payments or Creem resells your product, collects and pays the tax, and handles chargebacks, for a higher fee. Stripe Managed Payments is Stripe's own MoR option, added on top of normal Stripe fees.

How we wrote this: every fee and feature comes from each provider's own pricing page or docs, and each fee carries the date we checked it and its source. We haven't processed live payments through these providers, so we can't speak to payout speed, approval times or support. Fees change often; open the pricing page before you sign up. Tools can't pay to change their placement in our comparisons.

At a glance

1. Stripe

Who it's for: builders selling mostly in one market, or ready to handle tax, who want the lowest base rate and the most control.

What the official site says:

• Cards: 2.9% + 30¢ per successful domestic card transaction, +1.5% for international cards and +1% if currency conversion is needed. (fees checked Oct 27, 2026, source: https://stripe.com/pricing)
• Billing for subscriptions: 0.7% of Billing volume on pay-as-you-go. (fees checked Oct 27, 2026, source: https://stripe.com/pricing)
• Stripe Tax: 0.5% per transaction where you're registered to collect tax, on no-code integrations such as Checkout and Billing (50¢ per transaction through the API); Tax Complete, with registrations and filings, starts at $90 a month on a 1-year contract. (fees checked Oct 27, 2026, source: https://stripe.com/tax/pricing)
• Disputes: $15 for each dispute received, plus $15 if you counter it manually (refunded if you win). (fees checked Oct 27, 2026, source: https://stripe.com/pricing)

Key trade-off: the add-ons stack. A subscription paid with an international card can carry card, international, Billing and Tax fees at once, and filing is still yours unless you pay for Tax Complete.

Stripe on Stackdrop

Stripe Managed Payments

Stripe's merchant of record option adds 3.5% per successful transaction on top of standard Stripe fees, and covers sales tax, VAT and GST in 80+ countries, fraud, disputes and customer support. (fees checked Oct 27, 2026, source: https://stripe.com/managed-payments) Stripe's docs say it's for digital products sold directly to customers, works through Checkout and Payment Links, and doesn't support Stripe Connect or subscriptions created outside Checkout or Payment Links (source: https://docs.stripe.com/payments/managed-payments).

2. Polar

Who it's for: developer tools, open-source projects and indie SaaS that want an MoR with published, falling rates.

What the official site says:

• Starter is free at 5% + 50¢. Pro is $20 a month at 3.8% + 40¢, Growth $100 a month at 3.6% + 35¢, and Scale $400 a month at 3.4% + 30¢. (fees checked Oct 27, 2026, source: https://polar.sh/resources/pricing)
• +1.5% for non-US cards on every plan; no separate subscription fee on Starter and the paid plans. (fees checked Oct 27, 2026, source: https://polar.sh/resources/pricing)
• Payouts through Stripe: $2 per month of active payouts plus 0.25% + 25¢ per payout; disputes cost $15 regardless of outcome. (fees checked Oct 27, 2026, source: https://polar.sh/resources/pricing)
• Organizations created before May 27, 2026 keep an Early Member rate of 4% + 40¢ plus 0.5% on subscriptions, and lose it if they move to a paid plan. (checked Oct 27, 2026, source: https://polar.sh/resources/pricing)

Key trade-off: the paid plans only save money once your monthly sales cover the plan fee, and payout fees sit on top of the transaction rate.

Polar on Stackdrop

3. Lemon Squeezy

Who it's for: builders already selling on it, or who want a simple storefront, license keys and checkout for digital products.

What the official site says:

• 5% + 50¢ per transaction, with no monthly fee. (fees checked Oct 27, 2026, source: https://www.lemonsqueezy.com/pricing)
• +1.5% for transactions outside the US, +1.5% for PayPal and +0.5% for subscription payments; Stripe payouts are free to US bank accounts and 1% per payout elsewhere. (fees checked Oct 27, 2026, source: https://docs.lemonsqueezy.com/help/getting-started/fees)
• Stripe owns Lemon Squeezy. In a January 28, 2026 update, CEO JR Farr wrote that the team is building Stripe Managed Payments and planning an easy migration for Lemon Squeezy users (source: https://www.lemonsqueezy.com/blog/2026-update).

Key trade-off: the surcharges push the real rate above 5% + 50¢ for international subscriptions, and the company's own update points its future toward Stripe Managed Payments.

Lemon Squeezy on Stackdrop

4. Paddle

Who it's for: SaaS companies that sell worldwide and want one all-inclusive MoR price and an established vendor.

What the official site says: 5% + 50¢ per Checkout transaction on pay-as-you-go, with no monthly, migration or hidden fees, covering payments, billing, tax and compliance, fraud protection, chargebacks and buyer support. Custom pricing for high-volume or low-value sales. (fees checked Oct 27, 2026, source: https://www.paddle.com/pricing)

Key trade-off: one predictable rate with no listed surcharges, but higher than Polar's paid tiers, Dodo or Creem.

Paddle on Stackdrop

5. Dodo Payments

Who it's for: builders outside Stripe's core markets, including India, who want an MoR that sells in many countries.

What the official site says:

• 4% + 40¢ on US cards and wallets; +1.5% for cards outside the US; +3% for PayPal and buy-now-pay-later. (fees checked Oct 27, 2026, source: https://dodopayments.com/pricing)
• +0.5% for subscriptions, add-ons and usage-based billing; India cards and UPI at 4% + 15¢, plus international payment fees. (fees checked Oct 27, 2026, source: https://dodopayments.com/pricing)
• The pricing page says it can sell in 220+ countries.

Key trade-off: the base rate is lower than Paddle's, but international and subscription surcharges add up for a global SaaS.

Dodo Payments on Stackdrop

6. Creem

Who it's for: indie builders who want the lowest posted MoR rate with no international card surcharge.

What the official site says: 3.9% + 40¢ per successful transaction, $0 monthly and setup fees, and no international card fees. It collects and remits VAT, GST and sales tax in 50+ countries and pays out on the 1st and 15th of each month to a bank account or a crypto wallet, with stablecoin payouts listed. (fees checked Oct 27, 2026, source: https://www.creem.io/pricing)

Key trade-off: tax coverage is listed as 50+ countries, fewer than Stripe Managed Payments' 80+, so check that your buyers' countries are covered.

Creem on Stackdrop

Newer all-in-one: tiun

tiun combines auth, payments, a customer database and analytics in one backend, set up by your coding agent through its skills and MCP. Its pricing page lists a Free plan where tiun acts as MoR at 2.9% + 30¢, +0.5% on subscription payments, international cards and currency conversion included, monthly payouts (minimum $200) with a 1.5% payout fee, and $35 per dispute. (fees checked Oct 27, 2026, source: https://tiun.io/pricing) It's newer and smaller than the others here, so test a real payout before you depend on it.

tiun on Stackdrop

How to choose

1. One main market and you can handle tax: Stripe, with Stripe Tax.
2. Want Stripe, but with tax handled: Stripe Managed Payments, if your product and integration are eligible.
3. Developer tool or open source, fees that drop as you grow: Polar.
4. Already on Lemon Squeezy and it works: stay, and watch the move to Managed Payments.
5. Global SaaS, one predictable rate: Paddle.
6. Lowest posted MoR rate: compare Creem and Dodo on your own buyer mix.

Whatever you pick, run a test purchase and a real payout before you wire your whole app around one provider. For auth, see Clerk and Supabase, or browse our Featured page.

FAQ

Is Stripe a merchant of record? Not by default. With standard Stripe your business is the seller and handles tax. Stripe Managed Payments is Stripe's merchant of record option, for an extra 3.5% per transaction on top of standard fees, checked October 27, 2026.

Which is cheapest: Stripe, Polar, Lemon Squeezy or Paddle? Stripe has the lowest base rate at 2.9% + 30¢ for US domestic cards, but you handle tax. Among the merchants of record, Creem lists 3.9% + 40¢ and Polar's paid plans go down to 3.4% + 30¢. Your mix of international cards and subscriptions changes the answer. Fees checked October 27, 2026.

Is Lemon Squeezy still worth using in 2026? It still lists 5% + 50¢ plus surcharges. Its CEO's January 28, 2026 update says the team is building Stripe Managed Payments and planning a migration path, so new projects may want to compare Managed Payments directly.

What's the difference between Polar and Paddle? Both are merchants of record. Paddle charges an all-inclusive 5% + 50¢; Polar starts at 5% + 50¢ and has paid plans with lower rates, plus non-US card and payout fees. Checked October 27, 2026.

Did Stackdrop test these payment providers? No. We haven't processed live payments through them. This page uses each provider's official pricing page and docs, with the check date next to every fee.

Sources (fees checked Oct 27, 2026)

• Stripe pricing: https://stripe.com/pricing
• Stripe Tax pricing: https://stripe.com/tax/pricing
• Stripe Managed Payments: https://stripe.com/managed-payments and https://docs.stripe.com/payments/managed-payments
• Polar pricing: https://polar.sh/resources/pricing
• Lemon Squeezy pricing: https://www.lemonsqueezy.com/pricing, fees: https://docs.lemonsqueezy.com/help/getting-started/fees, 2026 update: https://www.lemonsqueezy.com/blog/2026-update
• Paddle pricing: https://www.paddle.com/pricing
• Dodo Payments pricing: https://dodopayments.com/pricing
• Creem pricing: https://www.creem.io/pricing
• tiun pricing: https://tiun.io/pricing