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The company
Nexus Mods is the world’s largest gaming mod site, serving over 60 million members globally.
Founded in the bedroom of Robin Scott in 2001, the Devon-based team has slowly established itself as the global platform for user-created video game modifications, hosting over 650,000 downloadable assets across more than 3,500 games
Here’s how Paddle helped them crack the complexities of global payments.
The challenge
As Nexus Mods evolved from a small modification site into one of the UK’s most visited web platforms, so did their payment uncertainty.
The Nexus Mods team were thrilled to see growth in countries like India, where the population skews young and the gaming market has huge potential to mature.
We were growing quickly around the world, largely unaware of the challenges that would bring.
Tom Mason, Director, Nexus Mods
After acquiring hundreds of Premium subscribers in India, sales tax bureaucracy came knocking.
We were being contacted by governments saying we were breaching their laws and needed to remit tax. We’re a small business in terms of headcount, so we just couldn’t justify the cost of doing that.
Tom Mason, Director, Nexus Mods
This had real business ramifications.
We were forced to cancel the accounts of around 1,000 customers in India. We didn’t want to, but we had no other solution – we had to suck it up.
John Harris, Senior Software Engineer, Nexus Mods
This solution was only a short-term fix and didn’t align with the company’s global goals.
The search was on for a better solution.
The solution
Enter the MoR (Merchant of Record) model.
A merchant of record is a legal entity responsible for selling goods or services to an end customer.
They manage payments and take on the associated liabilities, such as collecting sales tax, ensuring Payment Card Industry (PCI) compliance, and honoring refunds and chargebacks.
We actually stumbled upon the idea of a Merchant of Record via a Google search. There’s some great content on Paddle’s site that answered some of the questions we had.
John Harris, Senior Software Engineer, Nexus Mods
Nexus Mods soon narrowed their options to Paddle and one other payment solution.
We did a quick checkout test within the sandbox, and it was absolutely excellent. That’s when we knew we were onto something.
John Harris, Senior Software Engineer, Nexus Mods
Paddle’s comprehensive documentation and proactive support further bolstered confidence in the solution.
The Implementation
When Nexus Mods previously migrated to their former payment service provider (PSP), Braintree, the team was forced to delete all existing subscriptions and ask old customers to rejoin – a painful process they were determined not to repeat.
A seamless transition of subscribers was an absolute non-negotiable.
Paddle’s migration team worked closely with Nexus Mods to plan and execute the transition, minimizing downtime and ensuring a smooth experience for hundreds of thousands of subscribers.
From our perspective, getting up and running with Paddle was the best experience I’ve had with a third-party company. Joining Slack, joining our daily stand-ups, being there to follow the journey and listen – the implementation was exceptional.
Tom Mason, Director, Nexus Mods
The Results
From the Board to Customer Support: Time back for Nexus Mods
Migrating to Paddle has brought immediate benefits, saving valuable time and resources.
Customer support, previously burdened with the manual processing of chargebacks and refunds, now leverages Paddle’s automated features, saving 5–6 hours per month.
This allows the team to focus on listening to customers and enhancing their product.
Previously, every single request had to be manually checked, approved, and processed. We never have to deal with it now, which is a huge time saver.
Greg, Product Manager, Nexus Mods
Sales tax and compliance covered in 205 + countries
Paddle has also freed up time at the board level, offloading sales tax and remittance woes the world over.
I’m personally saving time and so are the accountants. The value is crystal clear though, we’re able to focus entirely on our business goals and our mission of making modding easier. Paddle helps us do that by completely taking away those challenges around tax and compliance.
Tom Mason, Director, Nexus Mods
9x conversion uplift in China
Having once been chased out of international markets, faced with threat of financial and legal penalties, the Nexus Mods team can now serve their customers across the globe in full confidence.
With 30+ currencies, 9 languages and an ever-expanding range of payment methods available with Paddle, Nexus Mods aren’t just selling into new territories now, they're excelling in them.
Nowhere is this more evident than in China, where the Nexus Mods team saw an almost overnight 9-fold increase in conversions after Paddle released Alipay for subscriptions.
We’re really seeing traction in China now that Paddle has integrated Alipay recurring for subscriptions.
John Harris, Senior Software Engineer, Nexus Mods
The Future
Having partnered with Paddle to manage the complexities of global payments and tax compliance, Nexus Mods is now free to focus on its core mission: creating the ultimate platform for video game modding enthusiasts, wherever they are in the world.
For Nexus Mods, the partnership with Paddle goes beyond payment management – it’s about unlocking the full potential of their platform and ensuring sustainable success for the future.
If there are people on a bit of land somewhere in the world, they use Nexus Mods. Paddle will be key in helping us reach more of those users and giving them the experience they want.
Want to know more about how Paddle can help your SaaS or digital product sell globally with ease? Create your free account now or speak to our team. Get Started.