Why Merchant of Record is Paddle’s Secret Sauce 👌

Today, you tie together dozens of tools, teams & banks

To sell software on subscription, here’s an outline of the tools, teams, costs & fees you need with the status quo.

• Payment gateways

• Subscription billing

• Invoicing

• Tax calculators

• Tax filing

• SaaS metrics

• Fraud detection

• Reconciliation

• Chargebacks

• Currency conversion

• Billing engineers

• Merchant banking

• Accountants

• Billing support

• Support tool seats

• Late payments

• Dunning tools

How Paddle Works

Paddle becomes a reseller of your software. You set pricing and sell through Paddle Checkout and Invoicing. Your customer’s buy through your website & invoices, but the sale goes through Paddle. They don’t see any difference.

Paddle handles all payments, taxes, currencies, compliance, and billing support queries. We send your payout with a ‘reverse invoice’ each month that lists all product sales, minus taxes and fees, which you record in your accounts.

Paddle handles all your payment methods

Take payments through credit card, wire transfer, and alternative payment methods like PayPal & Apple Pay with Paddle Checkout and Paddle Invoicing.

You choose which payment methods to offer. Configure in a click. You have no extra fees to pay. You only ever deal with Paddle.

Paddle handles all your sales tax liabilities

We calculate, remit, and file the sales taxes you owe globally on your behalf. We send you the sales taxes paid in a ‘reverse invoice’ for your records.

You choose whether to include or exclude taxes from your pricing. You have no extra liability to your sales tax globally.

Paddle handles all your merchant banking, currencies & FOREX

We maintain a global network of merchant banks and currencies, including their connection to payment gateways. We handle foreign exchange and reconciliation of all payments to subscriptions (including wire transfers) on your behalf with no extra fees.

You tell us which bank account and currency to payout into. No extra merchant banking, reconciliation, or treasury management between currencies needed.

Paddle handles all your fraud & chargeback protection

We maintain four layers of fraud protection. We contest fraudulent chargebacks on your behalf to recover revenue and chargeback fees from payment gateways.

You don’t have to do or pay anything extra.

Paddle handles all your order support

We can handle your billing support queries like subscription changes, refunds, and replies to invoices which we resolve with a dedicated buyer support team under SLAs and your brand rules. We forward and escalate customer queries we receive outside our billing remit that we cannot resolve back to your support team.

You can choose to setup your checkout receipts, reply to, and invoices to send billing support queries to Paddle.

Free up your product managers & engineers

Only integrate and configure one SaaS Commerce platform and one set of APIs for all your software sales that adapts as your software business grows.

No extra tooling to bolt-on over time - Paddle is the end-of-the-road solution for thousands of software businesses and indie developers.

Free up your finance teams

Delegate all your sales tax liability, account reconciliation, merchant banking, and currency management to Paddle.

Simplify revenue recognition and chasing delinquent payments with a single source of truth for all sources of revenue and subscriptions.

Free up your customer support teams

Typically, 25-40% of customer support queries are related to billing tooling - changing subscriptions, issuing refunds, and reviewing past subscription or payment details.

With Paddle, you can free up a third of your support headcount so you can focus on better support response times, customer support satisfaction, product feedback, and lower support costs.

Free up your legal counsel

Paddle takes legal liability for local compliance rules globally, include local sales taxes (like GST and VAT), customer data (like GPDR on checkout) and payments compliance (like PCI).

View our legal terms for software sellers →

Learn more about SaaS compliance →

Grow into new markets easily

The fastest growing companies all grow by moving into new markets and expanding their TAM - selling from individuals, teams & enterprises, across more countries, with more products, at more price points.

Paddle radically simplifies the effort needed to roll into new markets and tap new sources of growth.

The End-to-End Solution to Maximize Performance

With Paddle, you don’t need to change how multiple tools, teams & banks talk to each other to get the best performance in each market.

Paddle uniquely optimizes for problems like payment acceptance & dunning on subscription renewals, selling internationally in different currencies, and reconciling payments from checkout and wire transfer within our All-in-One SaaS Commerce Platform.

A Strategic Partnership to Shape Your Growth 🚀

With your entire buying journey and billing logic managed by Paddle, our account managers have full visibility of your flow (together with thousands of other sellers) to observe and make recommendations to grow fast.

No other consultant, tool, or bank can shape your growth strategy like Paddle can. That’s why Paddle consistently outperforms competitors in head-to-head tests.

Put our support team to work actively combatting churn

With all your order support flowing through Paddle, we can offer deals and discounts to your churning customers to retain their subscription revenue. You decide the rules. We go and execute. No extra work from your team.