PayPal vs Paddle
Side-by-side comparison across 15 dimensions. Data is approximate and for informational purposes only.
| Dimension | PayPal | Paddle |
|---|---|---|
| Model | Payment processor | Merchant of Record |
| Domestic Card Fee (US) | 3.49% + $0.49 | 5% + $0.50 |
| International Card Fee | +1.5% | Included |
| Currency Conversion | 3–4% markup | Included |
| Chargeback Fee | $20 per dispute | Paddle absorbs |
| Monthly Fee | $0 | $0 |
| Sales Tax / VAT | Not available | Included (200+ territories) |
| Tax Filing & Remittance | No (founder files) | Yes (Paddle files as MoR) |
| Subscription Billing | Free (basic) | Included |
| Payout Frequency | Instant to PayPal; 1–5 days to bank | Monthly (NET 15–30) |
| Payout Currencies | 25 currencies | USD, EUR, GBP |
| US Bank Required | No | No |
| Charge in Local Currencies | PayPal-controlled UX | 30+ currencies |
| Account Freeze Risk | High (180-day holds) | Low–moderate |
| Platform Type | Direct processor | Merchant of Record |
Key Notes
PayPal
Ubiquitous brand trust but highest total cost. High FX markup, account freeze risk (180-day holds), limited data portability. Best as secondary payment option alongside Stripe.
Paddle
Higher base rate but includes everything: tax calculation, filing, chargebacks, international fees. You never register for VAT/GST. Trade-off: Paddle owns the customer relationship and monthly payouts.
Frequently Asked Questions
How We Compared
We compared transaction fees (domestic + international), tax handling, MoR status, payout terms, and platform features from each provider's published pricing pages.
Disclaimer: All data on this page is approximate and for informational purposes only. Pricing, features, and availability change frequently. This is not legal, tax, or financial advice. Verify all figures directly with each provider before making decisions. Data reflects conditions as of early 2026.
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