All-in-One commerce platform for SaaS & software companies
Paddle is an all-in-one commerce platform specifically for SaaS and software companies. As "Merchant of Record", Paddle takes care of the complete handling of taxes, compliance and legal requirements worldwide.
With Paddle, you can focus on your product while Paddle takes care of payments, taxes, fraud, and compliance in over 200 countries.
Takes over all legal obligations
Global tax compliance & handling
Detailed insights and forecasting
Complete subscription management
Automatic tax calculation
AI-based fraud protection
Fully customizable checkout
The benefits for software companies
Sell in 200+ countries without worrying about local taxes
GDPR, PCI DSS and local laws are automatically complied with
Optimization and analytics for higher conversion rates
The numbers speak for themselves
Everything you need to know about implementing Paddle as your merchant of record for global SaaS sales
As a Merchant of Record (MoR), Paddle becomes the legal seller of your software, handling all compliance, tax collection, remittance, and regulatory requirements on your behalf. This means Paddle takes responsibility for VAT, sales tax, GST, and other taxes in over 200 countries, eliminating the need for you to register for tax in multiple jurisdictions.
The MoR model simplifies global expansion significantly. Instead of navigating complex international tax laws, setting up legal entities in different countries, or managing relationships with multiple payment processors, you work with Paddle as a single partner who handles all these complexities.
This approach is particularly valuable for SaaS companies wanting to sell globally without the administrative burden. Paddle handles customer disputes, chargebacks, refunds, and compliance issues, allowing you to focus on product development and customer acquisition while they manage the operational complexities of global commerce.
Paddle typically charges 5% + payment processor fees, which is higher than basic payment processors but includes comprehensive services that would cost significantly more to implement independently. The fee covers payment processing, global tax compliance, customer support, fraud protection, and regulatory compliance across all markets.
When comparing costs, consider the alternatives: hiring tax compliance experts, setting up legal entities in multiple countries, managing relationships with various payment processors, and handling customer support in multiple languages and time zones. These costs often exceed Paddle's fees, especially for companies selling in multiple markets.
The value becomes clear for international expansion. Instead of spending months researching tax requirements and setting up compliance infrastructure for each new market, you can expand globally immediately with Paddle handling all regulatory requirements. This speed to market often results in revenue that far exceeds the additional fees.
Paddle's MoR model means less direct control over the payment experience and customer relationships compared to direct payment processors. Since Paddle is the merchant of record, they own the customer relationship legally, and you receive anonymized customer data. This can impact detailed analytics and some types of customer lifecycle management.
Integration complexity can be higher for businesses with existing sophisticated billing systems, as you may need to adapt to Paddle's data models and workflows. The platform is optimized for SaaS and digital products, so it may not be ideal for businesses selling physical goods or requiring highly customized payment flows.
However, these limitations are often outweighed by benefits for most SaaS companies. The trade-off of some control for complete compliance, global reach, and reduced operational burden is typically favorable, especially for companies focused on rapid international expansion without building extensive operational infrastructure.
As the merchant of record, Paddle handles first-level customer support for billing, payment, and account issues in multiple languages and time zones. They manage payment disputes, chargebacks, and refund requests according to your defined policies, providing a buffer between you and payment-related customer service issues.
Paddle's support team is trained on common SaaS business models and can handle most billing inquiries without your involvement. For product-specific questions or technical issues, they escalate to your team through defined workflows, ensuring customers get appropriate support while maintaining clear boundaries between billing and product support.
This arrangement reduces your customer support burden significantly, especially for international customers who may have questions about taxes, billing cycles, or payment methods. Paddle's multilingual support capabilities and understanding of international payment regulations ensure customers receive appropriate assistance regardless of their location or local requirements.
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