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Paddle vs Polar: Which is right for you? (1970)

TL;DR

  • Choose Paddle if you need advanced billing (usage, dunning, entitlements).
  • Choose Polar if keeping fees low matters most.
  • Both work for: teams in their respective categories.

Paddle

5% + $0.50 per transaction

Merchant of Record for SaaS. Handles global VAT and tax remittance across 190+ countries.

Polar

4% + $0.40 per transaction (lowest MoR fees on the market)

Lowest MoR fees on the market (4% + $0.40). Open source, built for developers and OSS projects.

Pricing comparison

Pricing model
percentage
percentage
Detail
5% + $0.50 per transaction
4% + $0.40 per transaction (lowest MoR fees on the market)

Feature comparison

Paddle
Polar
Merchant of record
Yes
Yes
Paywalls
No
No
A/B testing
No
No
Tax handled
Yes
Yes
No-code
No
Yes
Open source
No
Yes
Ease of setup
3/5
5/5
Fee competitiveness
3/5
5/5
Conversion tooling
2/5
2/5
Advanced billing
4/5
1/5

Best for

Paddle is best for SaaS, B2B, global, Teams scaling up, web, Usage-based billing. Polar is best for indie dev, open source, developers, Digital products, SaaS, web.

FAQ

Is Paddle better than Polar?

Neither is universally better. Paddle is the right pick if you need advanced billing (usage, dunning, entitlements); Polar wins if keeping fees low matters most.

Which is cheaper, Paddle or Polar?

Polar ranks higher on fee competitiveness (5/5). Paddle pricing: 5% + $0.50 per transaction. Polar pricing: 4% + $0.40 per transaction (lowest MoR fees on the market).

Can I switch from Paddle to Polar?

Yes — most subscription and billing tools support migration via CSV import or API. Expect to reconfigure webhooks, paywalls, and entitlements. Check both vendors' migration docs before committing.

Does Paddle handle sales tax?

Yes. Paddle handles global sales tax and VAT for you.

All Paddle alternatives →All Polar alternatives →

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