Facts read November 6, 2026
Paddle vs Stripe Connect
Paddle is Cuely's default payments pick when your description doesn't favor either one: sells worldwide as merchant of record, so sales tax and VAT filing are handled for you. Pick Stripe Connect if you care most about marketplaces that pay out to providers.
Side by side
| Fact | Paddle | Stripe Connect |
|---|---|---|
| What it is | Merchant of record for software: it sells to your customer and handles tax filing. | Stripe's product for platforms that take payments for, and pay out to, other people. |
| Free plan | No monthly fee: 5% + 50¢ per checkout transaction. | No monthly fee. Card fees as Stripe: 2.9% + 30¢ per domestic card charge. With Stripe handling pricing: no account, payout volume or per-payout fees. |
| Paid from | Not stated | If you handle pricing: $2 per monthly active account, 0.25% + 25¢ per payout sent, and 0.25% of payout volume. |
| At 1,000 users | $0/month | $0/month |
| Open source | No | No |
| Self-hostable | No | No |
| Best for | Selling software internationally from day one; Founders who don't want tax registrations | Marketplaces that pay out to sellers or providers; Taking a percentage of each booking; Provider identity checks (KYC) handled by Stripe |
| Watch out | Higher fee than a plain processor (5% + 50¢). Less control over checkout and invoices than Stripe. | Two pricing modes: if Stripe bills providers' fees directly, no extra account or payout fees; if you handle pricing, $2 per monthly active account plus 0.25% + 25¢ per payout. Instant payouts cost 1% of payout volume. |
Where they differ
The published scores, from −3 to +3, that decide which one Cuely picks for each need.
| Need | Paddle | Stripe Connect |
|---|---|---|
| users pay each other and you take a cut | −3 A merchant of record for your own sales; it doesn't pay out to other sellers. | +3 Splits each payment, holds your fee and pays providers out, with their onboarding and KYC. |
| sells internationally and wants tax handled | +3 As merchant of record, Paddle collects and files sales tax and VAT. | 0 No particular strength here. |
| sells to businesses (organizations, roles, SSO) | +1 Subscriptions and invoices for software sales. | −1 Plain Stripe is simpler when nobody else gets paid out. |
| native iOS or Android app | −3 Digital subscriptions inside iOS apps must use in-app purchase (Apple Guideline 3.1.1). | −2 Fine for real-world services booked in an app; not for digital goods inside iOS apps, which need in-app purchase. |
| keep costs as low as possible | −1 5% + 50¢ is higher than a plain processor. | 0 No particular strength here. |
| regulated or compliance-sensitive | 0 No particular strength here. | +1 Stripe verifies providers' identity (KYC) during onboarding. |
Sources: Paddle pricing (read November 6, 2026), Stripe Connect pricing (read November 7, 2026). No vendor pays for placement.