Why Choose Lemon Squeezy over Stripe and Paddle
Choosing the right checkout tool is crucial for SaaS projects. Let us compare Stripe, Paddle, and Lemon Squeezy.
1. Comparing Core Models
Payment providers generally fall into two categories: standard payment gateways and Merchants of Record (MoR).
A. Stripe (Standard Gateway)
- Liability: You are the merchant of record.
- Taxation: You must calculate and remit sales tax manually to each state or country where your users buy.
- Setup: Requires high developer configuration.
B. Paddle and Lemon Squeezy (Merchant of Record)
- Liability: The provider acts as the merchant of record.
- Taxation: The provider calculates, collects, and remits global tax on your behalf.
- Setup: Low developer configuration.
2. Feature Comparison Matrix
| Metric | Stripe | Paddle | Lemon Squeezy |
| Merchant of Record | No | Yes | Yes |
| Global Sales Tax Remittance | Manual | Automatic | Automatic |
| Built-in Licensing API | No | No | Yes |
| API Customization | High | Medium | Medium |
| Default Checkout UI | Stripe Hosted | Overlay | Sleek Overlay and Hosted |
3. Why Developers Prefer Lemon Squeezy?
- Built-in License Keys: Includes a licensing system to generate and verify software activation codes out of the box.
- Beautiful Hosted Checkout: Pre-designed checkout forms require minimal customization.
- Modern Developer Experience: Provides clear API structures, beautiful dashboard graphs, and ready-to-use SDKs.
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