The verdict
If you sell software or other digital products to customers around the world and nobody on your team wants to run VAT and sales tax, I'd pick Paddle. If you sell to consumers, run a shop or freelance and want to be paid quickly with links and invoices, I'd pick PayPal.
For a software business that will scale, I would not use PayPal as the only payment layer. The fee depends on country, method and volume, and you get less control over billing. For a small shop, Paddle is more than you need. Check the Paddle account review and custom quote rules before you build on it, especially if your products are low-priced.
Side by side
| 6 points compared | ||
|---|---|---|
| Starts at | ||
| Free plan | Yes | Yes |
| API | Yes | Yes |
| MCP server | Yes | Yes |
| Dunning & churn recovery | Yes | Yes |
| Hosted self-serve checkout | Yes | Yes |
| Links |
Plans and pricing
Paddle
- Pay-as-you-goFree
PayPal
- Standard business accountFree
Who each is for
Choose Paddle if…
Pick Paddle if you are a SaaS, app or digital product company selling internationally and want tax, compliance, failed-payment recovery and billing from one provider. The pain usually shows when the first overseas customers arrive, or when you cross a registration threshold and nobody has time to deal with it.
There is no monthly fee on the pay-as-you-go rate, which suits an early-stage company, and the developer tools are well documented, with a sandbox and an official MCP server.
Think twice if you want to own the whole customer relationship. Customers see Paddle on their statements, and you depend on its rules and account review. Very low-priced products and complex invoicing need a custom quote.
Choose PayPal if…
Pick PayPal if you run an online shop, freelance or run a small business and want to accept PayPal and card payments without building a custom setup. Many customers trust an account they already have, and some will leave at checkout if you do not offer it.
It is also the quickest way to start charging. You can send a payment link or an invoice without a website, a storefront or hardware.
Read the fee table for your country, because the rate depends on method, cross-border payments and volume. For Dutch customers, iDEAL often matters as much, and it has its own fee. PayPal is not built for complex billing or tax handling, so a software business should look further.
Other options worth a look
Bills digital products as merchant of record, handling subscriptions, usage metering, tax compliance and payouts.
Acts as merchant of record for software and digital product sales, handling global tax compliance.
Manages subscription billing, invoicing and revenue recognition for recurring businesses with your own payment gateways.
Send invoices, track expenses, reconcile banks and prepare VAT returns for Dutch small businesses.
Ties agency projects, time, budgets and profitability together in one place for managing client work.