Paddle vs Stripe: Comparison for UK Businesses

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, security and much more.

We’ll even show you a way to get paid easily from customers all over the world using a Wise Business account, which links seamlessly to payment service providers (PSPs) like Stripe.

💡 Learn more about Wise Business

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.

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

Is Paddle a payment gateway?

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).

Is Paddle payments safe?

Paddle is safe to use for payments. It has PCI DSS Level 1 compliance, as well as Service Organization Control (SOC) 2 compliance.⁷ This means it has passed an extensive audit, assessing its sophisticated security measures. This includes bank-level encryption and extensive fraud protection.

Paddle doesn’t provide information on how it’s regulated in the UK.

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.

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’s not brilliant news. The company gets a ‘Poor’ rating of 2.4 on TrustPilot (from more than 14,000 reviews).³

Is Stripe payments safe?

Yes. Stripe is safe to use, and a level 1 Payment Card Industry Data Security Standards (PCI DSS) provider.⁹

To maintain this status, Stripe has to have a number of security measures in place. This includes:

• Maintaining a secure network and systems
• Encrypting and securely storing any sensitive data held
• Using industry level security to prevent malware and viruses
• Having strong access control measures
• Regularly testing systems and processes to spot and correct any vulnerabilities
• Having policies in place that clearly set out security measures expected and applied

Stripe payment fees

Now we’ll turn to Stripe and its fees. It 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

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:

Manage your international business with Wise

While you’re researching payment gateways and processors, it could also be worth looking into how you’ll manage business funds across borders.

Open a Wise Business account and you can hold and exchange 40+ currencies at once. You can send payments to 140+ countries and get local account details (only with Wise Business Advanced) to get paid in 8+ currencies like a local.

Use your Wise account to get paid in a selection of major foreign currencies by customers and clients, through marketplaces - and via PSPs like Stripe. Whenever you need to send, spend or exchange foreign currencies, you’ll benefit from the mid-market exchange rate, with low, transparent fees.

You’ll also benefit from all of these features:

• No ongoing fees, minimum balance requirements or foreign transaction fees
• Debit and expense cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 people at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions, and use the Wise API for automation and streamlining workflow
• Use the Wise Interest feature to make your money work harder when you’re not using it

With the help of a truly global account, your business can grow beyond international borders.

Get started with Wise Business 🚀

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 plenty of Stripe alternatives and challengers out there. It always pays to do your research and find the right fit for your company’s needs.

Sources used:

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, QuickPay QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.