Business

Paddle vs Stripe: Comparison for UK Businesses

Paola Faben Oliveira

20.06.24 (updated more than 1 year ago)

Read time 3 minutes

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Setting up an ecommerce business and need to choose a payment processor? This guide is for you, as we’re pitting two of the biggest names in the industry against each other - it’s Stripe vs. Paddle.

Below, we’ll compare Stripe and Paddle on all the things that matter. This includes pricing, features and much more.

Paddle vs Stripe - Comparison overview

Let’s start out with a head to head comparison of both Paddle and Stripe based on their pricing and key features. We’ll look at each option in more detail in just a moment.

Service	Stripe	Paddle
Pricing	Varied fees per transaction type, plus costs for physical POS terminals Standard fee 1.5% + £0.20 for local cards¹	5% + $0.50 USD per transaction Custom pricing available²
Trustpilot rating	2.4³ ⭐	4.2⁴ ⭐
Invoice payments	Available	Available
Recurring payments	Available	Available
International payments	Available	Available
API integrations	Available	Available
Checkout solution	Available	Available
Payment links	Available	Not available
In-person payments	Available	Not available

Paddle review

Paddle is a UK-based company which bills itself as a “complete payment infrastructure provider for software companies.” ⁵ Its target customers are Software-as-a-Service (SaaS companies). Paddle uses a merchant of record (MoR) model to provide an all-in-one payments, billing, and sales tax solution.

Paddle supports 29+ currencies,⁶ popular debit and credit cards, wire transfers and wallets (including Apple Pay, Google Pay, PayPal, and Alipay).

Features and services available at Paddle include:

Billing solutions, including subscriptions, invoicing and payments

Built-in sales tax compliance for Europe, US, Canada, and Australia

Fully customisable localised checkout options across multiple countries, languages and currencies

Automated VAT collection, filing and verification capabilities

One-click instant payouts directly to all major banks globally

Paddle has a ‘Great’ rating of 4.2 on TrustPilot, based on over 7,700 reviews.⁴

Paddle payment gateway services

Paddle provides payment gateway services, as well as payment processing services.

A payment gateway is an online platform which allows businesses to accept payments from their customers, usually via credit or debit card, as well as other forms of electronic payment (such as Apple Pay and Google Pay, for example).

Paddle pricing

So, how much will it cost your business to use Paddle? It offers Pay-as-you-go pricing, with a fixed charge per transaction, no monthly fees and no extra costs. You can also contact Paddle for a custom pricing model.

Transaction type	Paddle fee
Online payments	5% + $0.50 USD²
International	5% + $0.50 USD² + 2-3% if currency conversion is required⁸
Refund	Up to £20⁸
Chargeback	Up to £20⁸

paddle-vs-stripe

Stripe payment reviews

Stripe is a comprehensive payments processing platform aimed at businesses of all sizes. The Irish-American company’s customers are primarily ecommerce businesses, but anyone who sells online will find its services useful.

Features of the Stripe platform include:

Local and global card payments

Physical card terminals

Online and digital payment methods

Invoicing and recurring billing solutions

Payment links

Low and no code solutions as well as more complex, tailored options

Support with tax, user identification, business management and more

As for what its existing and former customers think about Stripe, it has a ‘Poor’ rating of 2.4 on TrustPilot (from more than 14,000 reviews).³

Stripe payment fees

Stripe doesn’t charge subscription fees, instead imposing charges for each payment and individual service you use. It’s called per-transaction pricing. Here are the main charges you need to know about:¹

Transaction type	Stripe fee
Local cards payments	1.5% + £0.20 for standard UK cards 1.9% + £0.20 for premium UK cards
International card payments	2.5% + £0.20 for cards issued in the EEA 3.25% + £0.20 for cards issued anywhere else + 2% fee if currency conversion is needed
Chargebacks (disputes)	£20 per payment
Recurring payments (billing)	0.5% per payment
Invoicing	0.4% per invoice

Stripe vs Paddle fees - Head to head comparison

To help you choose the most cost-effective payment processing solution for your needs, here’s a head-to-head comparison of fees for both Paddle and Stripe:

Transaction type	Stripe fee¹	Paddle fee
Online payments	1.5% + £0.20 for standard UK cards 1.9% + £0.20 for premium UK cards	5% + $0.50 USD²
International	2.5% + £0.20 for cards issued in the EEA 3.25% + £0.20 for cards issued anywhere else + 2% fee if currency conversion is needed	5% + $0.50 USD² + 2-3% if currency conversion is required⁸
Refund	Varies	Up to £20⁸
Chargeback	£20 per payment	Up to £20⁸

After reading this, you should have all the info you need to compare Stripe and Paddle, and choose the right payments solution for your business.

Stripe may be one of the biggest names in payments processing, but there are also other providers available. It’s useful to review different options and find the right fit for your company’s needs.

Sources used:

Stripe - Pricing
Paddle - Pricing
TrustPilot - Stripe
TrustPilot - Paddle
Paddle - About
Paddle - Billing - Checkout
Paddle - Security
Paddle - Terms
Stripe - Security

Sources last checked on date: 20-Jun-2024

*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.