Who Paddle suits
SaaS and software companies selling subscriptions internationally that want the merchant of record to handle tax, invoicing, currency and payment methods in one flat rate.
On the calculator's two reference payments, Paddle takes 5.01% of $5,000.00 from a US client to a Spanish business, and 5.05% of €1,000.00 between Germany and Spain, where there is no currency to convert.
What to watch out for
- The flat rate is the same whether the buyer is next door or abroad, so for domestic sales it is far above a processor.
- Paddle reviews businesses before onboarding and is aimed at software; one-off service invoices do not fit.
- The fixed fee per transaction makes low-priced products relatively expensive.
How to pay less with Paddle
- Use it when most of your revenue is international consumer sales, where the gap to a processor is smallest.
- Favour annual plans over monthly ones: fewer transactions, fewer fixed fees.
- At scale, ask for custom pricing.