Paddle MoR: Everything you need to know

Paddle 101

Introduction to Paddle

What is Paddle?

Paddle takes care of global payments complexity for SaaS, digital product and mobile app companies selling all over the world. Paddle operates as the Merchant of Record (MoR) managing local payments and currencies, fraud, regional privacy law, customer billing support, and complying with every local sales tax rule on your behalf. To truly scale everywhere, Paddle gives you insight into your revenue metrics, prevents customer churn, benchmarks your performance and gives you the tools, insight and expert advice to accelerate your growth.

Who is Paddle for?

Paddle serves B2C and B2B SaaS businesses, and mobile app and digital product companies selling globally. It's ideal for companies seeking to scale by optimizing how they get paid, ensure tax compliance across multiple jurisdictions, effectively manage subscriptions, and gain actionable insights into their business performance.

What makes Paddle different?

Unlike traditional payment processors, Paddle acts as the merchant of record, taking on full responsibility for payment management, tax calculation, remittance, and compliance, honoring refunds and chargebacks, and fraud protection. This simplifies operations for software companies, eliminating the need to manage multiple vendors or handle complex tax regulations. Additionally, Paddle's integration with ProfitWell Metrics and Retain provides deep insights and tools to optimize revenue and reduce churn.

Paddle vs Payment service providers:

The main difference between Paddle and a PSP is that, because Paddle is a merchant of record, it handles your entire order process, which includes taking on the related liabilities, whereas a payment service provider only handles the transaction process – the part where money leaves your customer’s bank account and arrives in yours.

A PSP, like Stripe, doesn’t take on any of the financial or taxation responsibilities of the transactions you make through their gateway. An MoR takes care of all of them. Payment service providers are only one part of your wider payments infrastructure; you’ll need to manage and integrate other (often costly) tools to build a sufficient billing stack.

See how Paddle compares:

Paddle vs Subscription Management Solutions:

Unlike standalone subscription management tools, Paddle integrates subscription management seamlessly with payment management. This integration enables businesses to automate recurring billing, manage customer lifecycles effectively, and optimize subscription revenue. Paddle’s unified approach enhances customer retention and scalability for subscription-based businesses.

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Paddle vs other MoRs:

Paddle was built specifically for SaaS and digital products with a global customer base. Paddle differentiates itself from other MoRs by offering an all-in-one solution that seamlessly integrates payment and subscription management, tax compliance, revenue analytics, churn prevention and expert advice to scale everywhere.

Additionally, Paddle provides transparent pricing with no hidden fees and supports digital businesses of all sizes aiming for global growth.

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How does Paddle help its customers?

Paddle offers a suite of services, including:

Getting Started with Paddle

What are the initial steps to start using Paddle?

To begin with Paddle:

  1. Sign Up: Create an account on Paddle's website.
  2. Account Verification: For account verification the following is required: pricing page, Terms of Service, Privacy Policy & Refund Policy.
  3. Integration: Use Paddle's APIs or SDKs to integrate payment management into your platform.

Detailed guides and documentation are available to assist with each step.

Does Paddle provide guidance during the setup process?

Yes, Paddle offers comprehensive support during setup, including:

What is the migration process if I'm moving from another payment solution?

Paddle facilitates seamless migration from other payment systems by:

Paddle works with its payment partners and your existing providers to ensure the safe and compliant transfer of all billing details. Our specialists ensure that you can unify all your customers into one place without fear of losing them.

What support channels does Paddle offer for me?

Paddle provides multiple support channels for businesses, including:

What support channels does Paddle offer for my customers?

Paddle offers your buyers support through:

Are there technical support resources available for developers?

Yes, developers have access to:

How much does Paddle cost?

How does Paddle's pricing work?

Paddle operates on a transparent, all-inclusive fee per transaction model, covering payment management, tax handling, fraud, chargebacks, billing support and subscription management. This eliminates hidden costs and simplifies financial planning.

5% + 50c per transaction

Paddle also has separate fees for invoices and for transactions under $10.

Are there setup fees or hidden costs associated with using Paddle?

No, Paddle does not charge setup fees or impose hidden costs. The pricing structure is straightforward, with a single fee per transaction encompassing all services provided.

By partnering with Paddle, companies can streamline their operations, ensure compliance, and focus on delivering exceptional products to their customers around the world.

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