Paddle vs Lemon Squeezy
Prices and features checked 2026-10-17 on both vendors' own pages. “not verified” means we could not confirm it.
Paddle or Lemon Squeezy? Both are merchants of record that list 5% + 50¢ per transaction with no monthly fee, so they collect and remit sales tax and VAT for you. Paddle offers custom pricing for high volume and an official MCP server for Paddle Billing. Lemon Squeezy, owned by Stripe, says in its 2026 update that it aims to help users migrate to Stripe Managed Payments.
| Paddle | Lemon Squeezy | |
|---|---|---|
| Made by | Paddle | Lemon Squeezy (Stripe) |
| Free tier | No monthly fees [source, checked 2026-10-17] | No monthly fee [source, checked 2026-10-17] |
| Entry paid price | 5% + 50¢ per checkout transaction; custom pricing for high volume [source, checked 2026-10-17] | 5% + 50¢ per transaction; the pricing page lists extra fees in some cases (e.g. transactions outside the US) [source, checked 2026-10-17] |
| Meter | Per checkout transaction [source] | Per transaction [source] |
| API and SDKs | API used by the official MCP server and SDKs [source] | REST API [source] |
| MCP server | Official MCP server (Apache-2.0) [source] | not verified |
| Open source | not verified | not verified |
| Compliance | not verified | not verified |
| Data retention | not verified | not verified |
| Merchant of record | Yes [source] | Yes: Lemon Squeezy collects and remits taxes as merchant of record [source] |
Verdict: when to use which
Use Paddle if you are starting a new SaaS or app business and want a merchant of record with active agent tooling (official MCP server).
Use Lemon Squeezy if you already sell on Lemon Squeezy and it works for you; plan for a possible move to Stripe Managed Payments.
FAQ
Are the fees the same?
The headline rate is the same: 5% + 50¢. Lemon Squeezy's pricing page notes extra fees in some cases, such as transactions outside the US.
What should Lemon Squeezy users do?
Read Lemon Squeezy's 2026 update. It points to Stripe Managed Payments, which became generally available in 39 countries in April 2026.
Other options?
Polar (open source, 5% + 50¢ free, lower rates on paid plans) and Stripe Managed Payments. See our payment APIs page.
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