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Lemon Squeezy vs Paddle

Both are merchants of record for digital products: they sell on your behalf, handle VAT and sales tax, and pay you the rest. Both advertise the same rate. The difference is in what is added to it outside the United States.

By Biel Vazquez · Rates verified

Short answer

Identical for a US seller with US buyers; Paddle is cheaper almost everywhere else. A €1,000.00 sale from a German buyer to a Spanish seller costs €74.85 on Lemon Squeezy and €50.50 on Paddle.

Same headline, different extras

Both start at 5% plus a fixed fee per sale. Paddle stops there: it states that currency conversion and international handling are included. Lemon Squeezy adds 1.5% when the buyer is outside the US, and 1% when it pays out to a bank outside the US.

So the seller's location matters as much as the buyer's. A US seller with US buyers pays the same on both: $250.50 on a $5,000.00 sale. A European seller with US buyers pays the payout fee at Lemon Squeezy, $297.99 against $250.50. A European seller with European buyers pays both extras: 7.48% against 5.05%.

Beyond price, they aim at slightly different sellers. Lemon Squeezy is built for solo creators and small stores selling templates, courses and software. Paddle is built for SaaS companies with subscriptions and reviews each business before onboarding. Both put their own name at checkout, because they are the seller.

If most of your customers are businesses that can self-account for VAT, compare both with a plain processor too: the reverse charge can make a merchant of record unnecessary.

What each one takes from a $5,000.00 payment

PaymentLemon SqueezyPaddleCheaper
US client → US business$5,000.00 invoice$250.505.01%$250.505.01%Tie
US client → Spanish business$5,000.00 invoice$297.995.96%$250.505.01%Paddle
US client → UK business$5,000.00 invoice$297.995.96%$250.505.01%Paddle
German client → US business€5,000.00 invoice€325.506.51%€250.505.01%Paddle

All four fee layers included. Lemon Squeezy is cheaper in 0 of 4 payments, Paddle in 3. Try your own route on the map.

Choose Lemon Squeezy if…

  • You are a US seller and most of your buyers are in the US.
  • You want a quick start for a small store of digital products.
  • You like its storefront and creator tools enough to pay for the extras abroad.

Choose Paddle if…

  • You sell from outside the US, or most of your buyers are outside it.
  • You run a subscription software business.
  • You want one flat rate with conversion included, whatever the buyer's country.

How each one is priced, layer by layer (account in the EEA)

Fee layerLemon SqueezyPaddle
Card or receiving fee5% + 0.505% + 0.50
Cross-border surcharge+1.5% non-US buyersnone
Currency conversionincluded / noneincluded / none
Payout to bank1%free

Sources: Lemon Squeezy · Paddle. Fixed amounts in the account currency.

Questions

Is Lemon Squeezy cheaper than Paddle?

Only in the one case where they tie: a US seller with US buyers (5.01% on both). Anywhere else Paddle costs the same or less, because Lemon Squeezy adds a surcharge for non-US buyers and a fee on payouts to non-US banks.

Do both handle VAT and sales tax?

Yes. Both act as the merchant of record: they calculate, collect and remit the tax due in the buyer's country, so you do not register for it yourself.

Which is better for a European seller?

On price, Paddle: on a €1,000.00 sale between two EU countries it costs €50.50 against €74.85 at Lemon Squeezy. Paddle does review businesses before onboarding, so check it accepts your product.

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