In-Depth Comparison
Stripe vs Paddle
In-depth comparison of Stripe and Paddle for B2B SaaS companies. We analyze payment processing, subscription management, tax compliance, developer experience, and pricing to help you choose the right billing platform.
Last updated: 2026-03-15
Stripe
stripe.comFinancial infrastructure for the internet. Accept payments, manage subscriptions, and build financial products.
Ideal for: SaaS companies of any size that want maximum flexibility and control over their billing stack, plus access to a vast ecosystem of tools and integrations
Paddle
paddle.comThe complete payments, tax, and subscriptions solution for SaaS. Merchant of record so you do not have to be.
Ideal for: SaaS companies that want a turnkey billing solution handling payments, sales tax, VAT, and compliance without building a finance operations team
TL;DR: Stripe vs Paddle
Stripe wins for SaaS teams that want maximum control, flexibility, and the largest ecosystem of integrations. Paddle wins for SaaS teams that want to offload tax compliance, payment operations, and merchant-of-record responsibilities entirely. Sequenzy integrates natively with both Stripe and Paddle, so whichever billing provider you choose, Sequenzy can power your lifecycle email (dunning, trial conversion, churn prevention) on top of it.
Maximum flexibility and the largest payment ecosystem for SaaS
Turnkey merchant of record that handles tax and compliance for you
Purpose-built SaaS email that connects natively to both Stripe and Paddle
Editor's Note
Regardless of whether you choose Stripe or Paddle, the billing events they generate (trial started, payment failed, subscription cancelled) are triggers for critical SaaS lifecycle emails. Sequenzy (sequenzy.com) integrates natively with both platforms, turning these billing events into automated dunning sequences, trial conversion campaigns, and churn prevention workflows without any custom webhook code.
Stripe vs Paddle vs Sequenzy: Quick Comparison
| Feature | Stripe | Paddle | Sequenzy | Edge |
|---|---|---|---|---|
| Best For | Maximum billing flexibility and control | Hands-off tax and payment compliance | Lifecycle email powered by billing events | Tie |
| Pricing Model | 2.9% + 30c per transaction | 5% + 50c per transaction (includes tax handling) | $19/mo flat for 15,000 emails | Stripe |
| Merchant of Record | No. You are the merchant. | Yes. Paddle is the merchant of record. | N/A (email platform, works with both) | Paddle |
| Sales Tax / VAT Handling | Stripe Tax add-on (0.5% per transaction) | Included in base pricing | N/A (handled by billing provider) | Paddle |
| Subscription Management | Stripe Billing with full API control | Built-in subscription engine | Syncs subscription state for email triggers | Tie |
| Payment Methods | 135+ payment methods globally | 30+ payment methods, localized checkout | N/A (uses your billing provider) | Stripe |
| Dunning / Failed Payment Recovery | Smart Retries + basic dunning emails | Automated retry logic + basic emails | Multi-step dunning sequences triggered by Stripe or Paddle events | Sequenzy |
| Developer API | Industry-leading REST API with 400+ endpoints | Clean REST API with webhook-first approach | REST API with SaaS lifecycle endpoints | Stripe |
| Self-Serve Billing Portal | Stripe Customer Portal (hosted) | Built-in customer portal | N/A (uses your billing provider portal) | Tie |
| Trial Management | Trial periods on subscriptions via API | Built-in trial support with checkout | Auto-detects trials, triggers conversion sequences | Sequenzy |
| Usage-Based Billing | Metered billing with usage records API | Usage-based pricing supported | Triggers emails based on usage thresholds | Stripe |
Score Breakdown
Each category scored out of 10. Totals: Stripe 83/100, Paddle 81/100, Sequenzy 83/100.
Feature-by-Feature Comparison
Detailed feature analysis across every category that matters for B2B SaaS email.
💳 Payment Processing
| Feature | Stripe | Paddle | Sequenzy |
|---|---|---|---|
| Card payments | 10/10 All major cards, 135+ currencies, 3D Secure | 8/10 Major cards supported, 30+ currencies | 0/10 N/A. Sequenzy is an email platform, not a payment processor. |
| Alternative payment methods | 10/10 Apple Pay, Google Pay, ACH, SEPA, iDEAL, Klarna, and 100+ more | 7/10 PayPal, Apple Pay, Google Pay, wire transfer, and regional methods | 0/10 N/A. Uses your billing provider. |
| Multi-currency support | 10/10 135+ currencies with automatic FX conversion | 8/10 30+ currencies with localized pricing | 0/10 N/A. Uses your billing provider. |
| Fraud prevention | 9/10 Stripe Radar with ML-based fraud detection, custom rules | 7/10 Basic fraud protection included | 0/10 N/A. Uses your billing provider. |
| PCI compliance | 10/10 PCI Level 1 certified. Stripe.js handles card data so you never touch it. | 10/10 PCI Level 1 certified. Paddle handles all card data as MoR. | 0/10 N/A. Uses your billing provider. |
🔄 Subscription Management
| Feature | Stripe | Paddle | Sequenzy |
|---|---|---|---|
| Recurring billing | 9/10 Stripe Billing handles monthly, annual, custom intervals with proration | 9/10 Built-in recurring billing with flexible intervals | 8/10 Syncs subscription state from Stripe/Paddle for email automation |
| Plan changes / proration | 10/10 Full proration control with multiple proration behaviors | 8/10 Automatic proration on plan changes | 8/10 Detects plan changes and triggers upsell/downgrade sequences |
| Free trials | 8/10 Trial periods configurable via API, card-up-front or no-card | 9/10 Native trial support built into checkout flow | 9/10 Auto-detects trial start/end from billing provider, triggers conversion sequences |
| Coupons and discounts | 9/10 Flexible coupon system with duration, amount-off, percent-off options | 8/10 Coupon and discount codes with checkout integration | 7/10 Can include coupon codes in win-back and upsell email sequences |
| Usage-based / metered billing | 9/10 Metered billing with usage records API, tiered and graduated pricing | 7/10 Usage-based pricing supported with reporting | 7/10 Triggers usage threshold emails (80% of limit, overage alerts) |
📋 Tax & Compliance
| Feature | Stripe | Paddle | Sequenzy |
|---|---|---|---|
| Sales tax calculation | 7/10 Stripe Tax add-on calculates sales tax in 50+ countries | 10/10 Included. Paddle handles all sales tax as merchant of record. | 0/10 N/A. Handled by your billing provider. |
| VAT handling | 7/10 Stripe Tax handles VAT. You still file and remit. | 10/10 Paddle collects, files, and remits VAT in all jurisdictions. | 0/10 N/A. Handled by your billing provider. |
| Tax filing and remittance | 3/10 You are responsible for filing and remitting taxes | 10/10 Paddle files and remits taxes on your behalf globally | 0/10 N/A. Handled by your billing provider. |
| Invoice generation | 8/10 Automatic invoice generation with customization | 9/10 Tax-compliant invoices generated automatically | 7/10 Can send branded invoice notification emails triggered by billing events |
| Revenue recognition | 8/10 Stripe Revenue Recognition add-on for ASC 606/IFRS 15 | 7/10 Basic revenue reporting included | 0/10 N/A. Handled by your billing provider. |
💻 Developer Experience
| Feature | Stripe | Paddle | Sequenzy |
|---|---|---|---|
| API quality | 10/10 Gold standard. 400+ endpoints, excellent docs, idempotency, versioning. | 7/10 Clean API with webhook-first design. Fewer endpoints but well-structured. | 8/10 REST API with SaaS-specific lifecycle endpoints |
| SDK ecosystem | 10/10 Official SDKs for Node, Python, Ruby, Go, Java, PHP, .NET, and more | 7/10 Official SDKs for Node, Python, PHP, Go | 7/10 Node.js and Python SDKs with billing provider helpers |
| Webhook system | 9/10 Comprehensive webhooks with signing, retries, and event types for everything | 8/10 Webhook notifications for all subscription lifecycle events | 9/10 Receives billing webhooks and translates them into email triggers automatically |
| Testing & sandbox | 10/10 Full test mode with test cards, test clocks for subscription testing | 8/10 Sandbox environment with test data | 7/10 Test mode that connects to Stripe/Paddle sandbox environments |
| Documentation | 10/10 Best-in-class documentation with interactive examples, guides, and recipes | 7/10 Good documentation with API reference and guides | 8/10 SaaS-focused docs with billing provider integration guides |
💰 Pricing Flexibility
| Feature | Stripe | Paddle | Sequenzy |
|---|---|---|---|
| Flat-rate pricing | 10/10 Simple per-seat, per-unit, or flat monthly pricing | 9/10 Flat-rate subscription pricing supported | 8/10 Triggers lifecycle emails for any pricing model |
| Tiered pricing | 10/10 Graduated and volume-based tiered pricing | 8/10 Tiered pricing with catalog management | 8/10 Detects tier changes and triggers appropriate sequences |
| Per-seat pricing | 9/10 Quantity-based subscriptions with per-seat billing | 8/10 Per-seat pricing with automatic adjustments | 7/10 Seat change events trigger upsell or adjustment emails |
| Custom / enterprise pricing | 9/10 Custom pricing via API, quotes, and invoices | 7/10 Custom pricing possible but less flexible | 7/10 Enterprise onboarding sequences with custom pricing context |
| Add-ons and one-time charges | 9/10 Invoice items, one-time charges, add-on subscriptions | 8/10 One-time charges and add-on products supported | 7/10 Triggers confirmation emails for add-on purchases |
Stripe vs Paddle vs Sequenzy: Pricing
Stripe charges per-transaction fees with optional add-ons. Paddle charges a higher per-transaction fee that includes tax handling and merchant-of-record services. Sequenzy charges a flat monthly fee based on email volume.
No monthly fee. Pay only per transaction (2.9% + 30c). Free to start.
No free trial. 5% + 50c per transaction from the start.
Free trial: 14 days with full features, then $19/mo for 15,000 emails
| Tier | Stripe | Paddle | Sequenzy | Volume |
|---|---|---|---|---|
| Starter / Low Volume | 2.9% + 30c per txn No monthly fee. Stripe Billing, Checkout, Customer Portal included. Tax is extra (0.5% per txn). | 5% + 50c per txn Includes sales tax, VAT, merchant of record. Higher rate but zero tax compliance work. | $19/mo 15,000 emails/month, all SaaS workflows, native Stripe + Paddle integration | $10K MRR / 15K emails |
| Growth / Mid Volume | 2.9% + 30c (volume discounts available) Custom rates available. Add Stripe Tax (0.5%), Radar for Fraud Teams ($0.07/txn), Revenue Recognition ($0.01/txn). | 5% + 50c (volume discounts at $50K+ MRR) Volume discounts negotiable. All tax and compliance still included. | $49/mo 50,000 emails/month, dedicated IP, advanced analytics, priority support | $50K-200K MRR / 50K emails |
| Scale / Enterprise | Custom pricing Enterprise agreements with negotiated rates, dedicated support, SLA, and custom features | Custom pricing Enterprise agreements with lower rates, dedicated account management, SLA | $149/mo 200,000 emails/month, custom onboarding, SLA, SSO | $500K+ MRR / 200K+ emails |
Stripe: Watch Out For
- !Stripe Tax adds 0.5% per transaction for automatic tax calculation
- !Stripe Radar for Fraud Teams costs $0.07 per screened transaction
- !Revenue Recognition add-on costs $0.01 per transaction
- !You need a tax filing service or accountant to actually remit collected taxes
- !Connect platform fees if you build a marketplace
- !Chargeback fees of $15 per dispute
Paddle: Watch Out For
- !The 5% + 50c rate is significantly higher than Stripe at scale (at $100K MRR, Paddle costs roughly $5,500/mo vs Stripe at roughly $3,200/mo)
- !Payout frequency is less flexible than Stripe (net terms vs instant payouts)
- !Limited payment method coverage compared to Stripe
- !Less control over checkout and billing customization
- !Switching away from Paddle means taking on tax compliance yourself
Sequenzy: Watch Out For
- !Separate from your billing platform cost (you still pay Stripe or Paddle)
- !Free tier is a 14-day trial rather than a permanent free plan
- !Smaller SDK ecosystem compared to Stripe
Pricing Verdict: At low volume, Paddle saves you the headache of sales tax compliance at a higher per-transaction cost. At scale, Stripe is significantly cheaper on transaction fees, but you need to handle tax compliance yourself (or pay for Stripe Tax plus a tax filing service). Sequenzy at $19/mo adds lifecycle email automation on top of whichever billing provider you choose, turning billing events into dunning, trial conversion, and churn prevention sequences.
Cost Comparison Note
The fee difference between Stripe and Paddle matters at scale, but do not overlook the cost of failed payment recovery. Both platforms have basic dunning, but layering Sequenzy ($19/mo) on top of either provider adds multi-step recovery sequences that can recover 25-40% more failed payments. At $100K MRR with 3% monthly failed payments, that recovery improvement is worth $750-1,200/mo, far exceeding Sequenzy cost.
B2B SaaS Use Cases
How each platform handles the email workflows that matter most for B2B SaaS companies.
🔄 Subscription Billing
Managing recurring subscriptions with monthly and annual plans, upgrades, downgrades, and cancellations.
Stripe
Stripe Billing provides full API control over subscriptions. Create plans, manage proration, handle upgrades/downgrades programmatically. Use the Customer Portal for self-serve billing management. Highly customizable but requires development effort.
Paddle
Paddle provides a complete subscription engine with built-in checkout. Define products and prices in the dashboard, embed the checkout overlay, and Paddle handles the rest including proration and plan changes. Less customization, faster setup.
Sequenzy
Sequenzy connects to either Stripe or Paddle and auto-triggers lifecycle emails for every subscription event: welcome on signup, onboarding after activation, nudges during trial, confirmation on upgrade, win-back on downgrade or cancellation.
Verdict: Both Stripe and Paddle handle subscription billing well. Stripe offers more control, Paddle offers less complexity. Sequenzy adds the email layer that both platforms lack, ensuring every subscription event triggers the right communication.
Real-World Example
A project management SaaS needs monthly and annual plans with mid-cycle upgrades. Stripe gives full proration control. Paddle handles it automatically. Sequenzy sends the upgrade confirmation and highlights new Pro features.
Example subject line: Your subscription to [App] has been upgraded to Pro
📊 Usage-Based Pricing
Billing customers based on actual usage (API calls, compute hours, storage, active users) rather than flat subscription fees.
Stripe
Stripe Billing supports metered usage with usage records API. Report usage throughout the billing period and Stripe calculates the invoice automatically. Supports tiered, graduated, and volume pricing models.
Paddle
Paddle supports usage-based pricing with reporting. Less flexible than Stripe for complex metering but handles the basics well. Usage is reported and billed at the end of each period.
Sequenzy
Sequenzy triggers usage-based emails: approaching limit alerts (80% threshold), overage notifications, usage summary digests, and upsell prompts when users consistently hit their limits.
Verdict: Stripe is clearly stronger for usage-based billing with its flexible metering API. Paddle handles basic usage billing but lacks Stripe depth. Sequenzy turns usage data into actionable emails that drive upgrades and prevent surprise bills.
Real-World Example
An API platform charges per API call with tiered pricing. Stripe meters usage via API. Sequenzy emails users at 80% and 100% thresholds with upgrade CTAs.
Example subject line: You have used 90% of your API calls this month
💳 Dunning & Failed Payment Recovery
Recovering revenue from failed payments through automated retries and customer communication to reduce involuntary churn.
Stripe
Stripe Smart Retries uses machine learning to retry failed payments at optimal times. Basic built-in dunning emails can be customized in the dashboard. Recovery rates around 15-25% for smart retries alone.
Paddle
Paddle automatically retries failed payments and sends basic dunning emails. As merchant of record, Paddle has direct control over payment retry logic. Recovery capabilities are decent but email customization is limited.
Sequenzy
Sequenzy provides multi-step dunning sequences that activate automatically when Stripe or Paddle reports a failed payment. Escalating templates (friendly reminder, urgent notice, final warning) with direct payment update links. Auto-stops when payment succeeds. Recovery rates improve by 25-40% compared to basic platform dunning.
Verdict: Stripe and Paddle both offer basic dunning capabilities. Sequenzy dramatically improves recovery rates by layering sophisticated, multi-step email sequences on top of either platform. The combination of Stripe/Paddle retries plus Sequenzy emails is the most effective approach.
Real-World Example
A SaaS with 2,000 paying customers loses 3-5% monthly to failed payments. Stripe retries the charge. Sequenzy sends 3 escalating emails over 10 days, recovering an additional 30% of otherwise-lost subscriptions.
Example subject line: Action needed: your payment for [App] could not be processed
📋 Tax Compliance
Calculating, collecting, and remitting sales tax, VAT, and GST across multiple jurisdictions for SaaS products sold globally.
Stripe
Stripe Tax calculates the correct tax automatically based on customer location and product type. You still need to register, file, and remit taxes yourself (or use a partner like TaxJar/Avalara). Stripe Tax costs an additional 0.5% per transaction.
Paddle
Paddle handles everything as merchant of record: calculation, collection, filing, and remittance in all jurisdictions. You receive net payouts with tax already deducted and remitted. Zero tax compliance work on your end.
Sequenzy
Sequenzy does not handle tax compliance (that is your billing provider job). However, Sequenzy can send tax-related notification emails, such as annual tax summary emails or VAT invoice notifications, triggered by billing events.
Verdict: Paddle wins decisively on tax compliance. As merchant of record, Paddle handles the entire tax lifecycle. Stripe Tax calculates taxes but you still must file and remit, which requires additional tools or accountants. This is Paddle strongest differentiator.
Real-World Example
A SaaS selling to customers in 40+ countries needs to handle VAT in the EU, GST in Australia, and state sales tax in the US. Paddle handles all of it. Stripe requires Stripe Tax plus a filing service.
Example subject line: Your 2025 annual payment summary is ready
🛒 Checkout Experience
The purchase flow that converts visitors into paying customers, including payment form, plan selection, and order confirmation.
Stripe
Stripe offers multiple checkout options: Stripe Checkout (hosted page), Stripe Elements (embeddable components), or fully custom forms via the API. Maximum flexibility but more development effort for custom experiences.
Paddle
Paddle provides an overlay checkout that appears on your site. Localized for currency and language. Clean, conversion-optimized design. Less customizable than Stripe but works well out of the box.
Sequenzy
Sequenzy triggers post-checkout emails: welcome sequences after purchase, onboarding flows after trial signup, and receipt confirmations. Integrates with both Stripe Checkout and Paddle Checkout webhooks.
Verdict: Stripe offers more checkout flexibility, from hosted pages to fully custom forms. Paddle provides a simpler, localized checkout overlay. Sequenzy ensures the post-checkout experience is equally optimized with immediate onboarding emails.
Real-World Example
A SaaS wants a checkout that shows localized pricing, accepts local payment methods, and immediately triggers an onboarding sequence. Stripe or Paddle handles payment. Sequenzy handles the welcome email.
Example subject line: Welcome to [App]. Let us get you started.
⬆️ Self-Serve Upgrades & Downgrades
Allowing customers to change their subscription plan, add seats, or modify their billing without contacting support.
Stripe
Stripe Customer Portal provides a hosted page where customers can upgrade, downgrade, cancel, and update payment methods. Fully customizable appearance and allowed actions. Deep API control for building custom portals.
Paddle
Paddle offers a built-in customer portal for plan changes and payment updates. Clean interface but less customizable than Stripe. Works well for standard upgrade/downgrade flows.
Sequenzy
Sequenzy triggers contextual emails around self-serve changes: upgrade confirmation with new feature highlights, downgrade acknowledgment with value reinforcement, and proactive upgrade suggestions based on usage patterns.
Verdict: Stripe offers more customization for self-serve billing portals. Paddle provides a good default experience. Sequenzy adds the communication layer, ensuring every plan change triggers appropriate follow-up emails.
Real-World Example
A SaaS user upgrades from Starter to Pro via the billing portal. Stripe handles the proration. Sequenzy sends an upgrade confirmation email highlighting the new Pro features they just unlocked.
Example subject line: You have upgraded to Pro. Here is what is new.
🌍 Global Expansion
Selling SaaS subscriptions to customers in multiple countries with local payment methods, currencies, and compliance.
Stripe
Stripe supports 135+ currencies, 46+ countries, and 100+ payment methods. Stripe Atlas helps with US company formation. Stripe Connect enables marketplace models. You handle compliance in each market.
Paddle
Paddle simplifies global expansion by acting as the merchant of record. You sell through Paddle, and Paddle handles local payment methods, currencies, tax compliance, and regulatory requirements in each market.
Sequenzy
Sequenzy sends localized lifecycle emails based on customer currency and region. Dunning emails reference the correct currency. Timezone-aware sending ensures emails arrive during business hours in each market.
Verdict: Both platforms handle global expansion well. Stripe offers more payment methods and currencies. Paddle removes the compliance burden of entering new markets. Sequenzy ensures your customer communications are equally global.
Real-World Example
A SaaS expanding from the US to the EU needs to handle VAT, accept SEPA payments, and send localized communications. Paddle handles payments and tax. Sequenzy sends lifecycle emails in the right timezone.
Example subject line: Your subscription renewal: EUR 49.00/month
📈 Revenue Analytics & Reporting
Tracking MRR, churn, LTV, and other SaaS metrics from your billing data to make informed business decisions.
Stripe
Stripe Dashboard provides revenue overview, subscription metrics, and basic reporting. For deeper SaaS analytics (MRR, churn, LTV, cohort analysis), most teams use third-party tools like Baremetrics, ChartMogul, or ProfitWell.
Paddle
Paddle includes basic revenue reporting and analytics. SaaS-specific metrics like MRR and churn are available in the dashboard. Less third-party analytics ecosystem than Stripe.
Sequenzy
Sequenzy provides email-specific SaaS analytics: MRR impact per email sequence, dunning recovery rate, trial conversion rate by email variant, and revenue attribution showing which emails drive upgrades.
Verdict: Both billing platforms offer basic revenue reporting. Sequenzy uniquely shows the revenue impact of your email communications, letting you see exactly how much MRR each dunning sequence recovers or each upsell email generates.
Real-World Example
A SaaS founder wants to know how much revenue the dunning email sequence recovered last month. Stripe shows failed payments. Sequenzy shows that the 3-step dunning sequence recovered 32% of at-risk MRR.
Example subject line: Monthly revenue digest: your sequences recovered $4,200 in MRR
The Bigger Picture
Notice that both Stripe and Paddle are strong at processing payments but weak at communicating with customers about those payments. Neither platform offers sophisticated trial conversion sequences, multi-step dunning with behavioral triggers, or churn prevention workflows. This is exactly the gap Sequenzy fills, connecting natively to both Stripe and Paddle to power the email layer of your SaaS billing lifecycle.
Automation Capabilities
Email automation is critical for B2B SaaS. Here is how Stripe, Paddle, and Sequenzy compare.
| Capability | Stripe | Paddle | Sequenzy |
|---|---|---|---|
| Payment retry logic | Yes Smart Retries with ML-optimized timing for failed charges | Yes Automatic retries as merchant of record | No Not a payment processor. Sends dunning emails to complement platform retries. |
| Dunning email sequences | Yes Basic built-in dunning emails, customizable in dashboard | Yes Basic dunning emails included | Yes Multi-step, behavior-aware dunning sequences with escalation logic |
| Trial conversion workflows | No No built-in trial email sequences. Basic trial support in subscriptions API. | No No built-in trial email sequences. Trial support in checkout. | Yes Pre-built trial conversion sequences triggered by Stripe/Paddle trial events |
| Subscription lifecycle events | Yes Comprehensive webhook events for every subscription state change | Yes Webhook events for subscription created, updated, cancelled, past due | Yes Translates billing webhooks into email triggers automatically |
| Customer portal | Yes Stripe Customer Portal for self-serve billing management | Yes Built-in customer portal for plan and payment management | No N/A. Uses your billing provider portal. |
| Churn prevention automation | No No built-in churn prevention. Use cancellation flows in Customer Portal. | No No built-in churn prevention workflows | Yes Automated churn prevention sequences triggered by cancellation intent, usage decline, or failed payments |
| Upsell triggers | No No built-in upsell automation | No No built-in upsell automation | Yes Usage-based upsell triggers when customers approach plan limits |
| Revenue recovery workflows | Yes Smart Retries handle payment-level recovery | Yes Automatic payment retries | Yes Multi-channel recovery combining email sequences with payment update reminders |
API & Developer Experience
For B2B SaaS teams, the API quality directly impacts how fast you can integrate and iterate on email.
Stripe API
- SDKs: Node.js, Python, Ruby, Go, Java, PHP, .NET, iOS, Android
- Docs: 10/10
- Webhooks: Comprehensive webhook events for every payment, subscription, and account action. HMAC signing, retry logic, and event versioning.
- Rate Limit: 100 requests/second in live mode, burstable
- Batch: Batch API for creating multiple resources in one call
Paddle API
- SDKs: Node.js, Python, PHP, Go
- Docs: 7/10
- Webhooks: Webhook notifications for subscription lifecycle, payment, and transaction events. Signature verification included.
- Rate Limit: 50 requests/second with rate limit headers
- Batch: Standard API, no batch endpoint
Sequenzy API
- SDKs: Node.js (official), Python (official), REST API for all languages
- Docs: 8/10
- Webhooks: Email events (opens, clicks, bounces) plus billing event forwarding. Retry logic with HMAC signing.
- Rate Limit: 50 requests/second, higher on Scale plan
- Batch: Batch sending with per-recipient personalization
Stripe Code Example
import Stripe from "stripe";
const stripe = new Stripe("sk_live_your_key");
// Create a subscription with trial
const subscription = await stripe.subscriptions.create({
customer: "cus_abc123",
items: [{ price: "price_pro_monthly" }],
trial_period_days: 14,
});
// Report metered usage
await stripe.subscriptionItems.createUsageRecord(
"si_item_id",
{ quantity: 150, action: "increment" }
);Paddle Code Example
import { Paddle } from "@paddle/paddle-node-sdk";
const paddle = new Paddle("your_api_key");
// Create a subscription via checkout
const checkout = await paddle.checkout.create({
items: [{ priceId: "pri_pro_monthly", quantity: 1 }],
customer: { email: "user@company.com" },
settings: { successUrl: "https://app.com/welcome" },
});
// List subscriptions for a customer
const subs = await paddle.subscriptions.list({
customerId: "ctm_abc123",
});Sequenzy Code Example
import { Sequenzy } from "sequenzy";
const sq = new Sequenzy("sq_your_api_key");
// Subscriber auto-syncs with Stripe or Paddle
await sq.subscribers.add({
email: "user@company.com",
firstName: "Sarah",
stripeCustomerId: "cus_abc123",
// or: paddleCustomerId: "ctm_abc123"
});
// Trigger lifecycle email sequence
await sq.sequences.trigger({
email: "user@company.com",
sequence: "trial_onboarding",
});Email Deliverability Comparison
Your emails are useless if they do not reach the inbox. Here is how all three platforms handle deliverability.
| Factor | Stripe | Paddle | Sequenzy |
|---|---|---|---|
| Payment Success Rate | High success rates with Smart Retries and adaptive retry logic | Good success rates with automatic retries as merchant of record | N/A (email platform). Improves effective recovery via multi-step dunning emails. |
| Global Coverage | 46+ countries, 135+ currencies, 100+ payment methods | 200+ countries and territories with localized checkout | Sends emails globally with timezone-aware delivery |
| Uptime & Reliability | 99.999% uptime SLA on enterprise plans | 99.9% uptime with status page transparency | 99.9% uptime for email delivery infrastructure |
| Payout Speed | Daily payouts available, instant payouts for eligible accounts | Net 7-14 day payout cycles (less flexible) | N/A (email platform) |
| Chargeback Protection | $15 per dispute fee, Radar for fraud prevention | Paddle handles chargebacks as merchant of record | Proactive emails can reduce chargebacks by communicating clearly with customers |
| Email Deliverability (for billing emails) | Basic built-in receipt and invoice emails via Stripe | Basic built-in receipt and notification emails | Purpose-built email deliverability with SaaS-only IP pools and strong inbox placement |
Stripe and Paddle are payment platforms, not email platforms, so "deliverability" here refers to payment processing reliability. For email deliverability (inbox placement, sender reputation, engagement tracking), Sequenzy is purpose-built and outperforms the basic transactional emails that Stripe and Paddle send natively.
Integration Ecosystem
Stripe has ~500 integrations, Paddle has ~80, and Sequenzy has ~25. Here is how they compare across key B2B SaaS categories.
Email & Communication
| Service | Stripe | Paddle | Sequenzy |
|---|---|---|---|
| Sequenzy | Yes (Native) | Yes (Native) | Yes (Native) |
| SendGrid | Yes (Official) | Yes (3rd Party) | Yes (Native) |
| Customer.io | Yes (3rd Party) | Yes (3rd Party) | Yes (Native) |
Analytics & Reporting
| Service | Stripe | Paddle | Sequenzy |
|---|---|---|---|
| Baremetrics | Yes (Native) | Yes (Native) | No (None) |
| ChartMogul | Yes (Native) | Yes (Native) | No (None) |
| ProfitWell | Yes (Native) | Yes (Native) | Yes (Official) |
CRM & Sales
| Service | Stripe | Paddle | Sequenzy |
|---|---|---|---|
| HubSpot | Yes (Native) | Yes (3rd Party) | Yes (Official) |
| Salesforce | Yes (Official) | Yes (3rd Party) | Yes (3rd Party) |
| Close | Yes (3rd Party) | No (None) | No (None) |
Automation & Workflow
| Service | Stripe | Paddle | Sequenzy |
|---|---|---|---|
| Zapier | Yes (Native) | Yes (Official) | Yes (Official) |
| Make (Integromat) | Yes (Official) | Yes (Official) | Yes (Official) |
| n8n | Yes (Official) | Yes (3rd Party) | Yes (3rd Party) |
Accounting & Finance
| Service | Stripe | Paddle | Sequenzy |
|---|---|---|---|
| QuickBooks | Yes (Official) | Yes (3rd Party) | No (None) |
| Xero | Yes (Official) | Yes (Official) | No (None) |
| NetSuite | Yes (3rd Party) | No (None) | No (None) |
Analytics & Reporting
What data you can track and how each platform helps you measure email performance.
| Metric | Stripe | Paddle | Sequenzy |
|---|---|---|---|
| MRR tracking | Basic MRR visible in dashboard. Better with third-party tools. | MRR reporting in Paddle dashboard | MRR impact per email sequence (how much MRR each automation recovers or generates) |
| Churn analytics | Basic churn data. Detailed analysis requires Baremetrics/ChartMogul. | Churn metrics in dashboard, ProfitWell integration | Churn prevention effectiveness: shows which sequences reduce churn and by how much |
| Trial conversion rate | Not tracked natively. Build your own or use third-party. | Basic trial metrics in reporting | Trial conversion tracking by email sequence variant with A/B test results |
| Payment failure rate | Failed charge metrics in dashboard with reason codes | Failed payment tracking with retry outcomes | Dunning sequence performance: recovery rate per email step, total MRR recovered |
| Revenue per customer | Customer lifetime value estimations with Revenue Recognition | Revenue per customer in reporting | Revenue impact attribution per email touchpoint |
| Upgrade/downgrade tracking | Subscription update events tracked via webhooks | Plan change events in dashboard | Upsell email conversion rates and downgrade prevention effectiveness |
| Geographic revenue | Revenue breakdown by country and currency | Revenue by country with tax breakdown | Email engagement rates by region for timezone optimization |
Stripe: Unique Features
- + Stripe Sigma for custom SQL queries on your billing data
- + Revenue Recognition for ASC 606/IFRS 15 compliance
- + Radar analytics for fraud pattern detection
- + Real-time payment analytics dashboard
Paddle: Unique Features
- + ProfitWell integration (owned by Paddle) for free SaaS metrics
- + Tax collected and remitted reporting by jurisdiction
- + Net revenue reporting (after Paddle fees and tax)
- + Payout reconciliation reports
Sequenzy: Unique Features
- + MRR impact per email sequence (shows revenue generated by each automation)
- + Dunning recovery rate dashboard with per-step conversion
- + Trial conversion rate tracking by email sequence variant
- + Churn prevention effectiveness metrics
- + Revenue attribution per email touchpoint
Pros & Cons
Stripe
Pros
- + Industry-leading API with the most comprehensive documentation and SDKs
- + Lower per-transaction fees (2.9% + 30c vs Paddle 5% + 50c)
- + 135+ payment methods and 135+ currencies for global reach
- + Massive ecosystem of integrations, tools, and third-party apps
- + Full control over checkout, billing, and customer experience
- + Daily or instant payouts for better cash flow
- + Stripe Radar for ML-based fraud prevention
- + Test mode with test clocks for subscription lifecycle testing
Cons
- - Tax compliance is your responsibility (Stripe Tax calculates but does not remit)
- - More development effort required to set up billing flows
- - You handle chargebacks, refunds, and payment disputes directly
- - Sales tax registration and filing requires additional tools or accountants
- - Basic built-in dunning emails lack sophistication
- - No built-in SaaS lifecycle email workflows
- - Revenue Recognition is a paid add-on
- - Customer Portal is functional but limited in customization
Paddle
Pros
- + Merchant of record: Paddle handles all tax compliance, filing, and remittance
- + Turnkey solution requiring minimal billing development effort
- + Handles chargebacks and payment disputes on your behalf
- + Localized checkout with automatic currency and language detection
- + Owns ProfitWell for integrated SaaS metrics
- + Simpler setup for international sales (no tax registration needed)
- + Built-in subscription management with customer portal
- + Compliance with global payment regulations handled for you
Cons
- - Significantly higher per-transaction fees (5% + 50c vs Stripe 2.9% + 30c)
- - Less payment method coverage than Stripe (30+ vs 135+)
- - Smaller API surface and fewer SDKs
- - Less checkout customization flexibility
- - Payout cycles are slower (net 7-14 days vs daily/instant)
- - Paddle appears on customer invoices as the seller, not your brand
- - Smaller integration ecosystem
- - Less control over the end-to-end billing experience
Who Should Use What?
Specific recommendations based on your company type and needs.
Early-stage SaaS (pre-Series A)
You are a small team with limited engineering bandwidth and need to start charging customers quickly.
Paddle gets you billing and compliant globally with minimal development effort. The higher transaction fee is worth it when your volume is low and your time is better spent on product.
Developer tool or API product
You are building a developer-facing product and want maximum control over your billing experience.
Stripe API is the gold standard for developer experience. Build exactly the billing flow you want with comprehensive SDKs, test mode, and documentation.
SaaS selling to EU customers
A significant portion of your customers are in the EU and you need to handle VAT compliance across 27+ member states.
Paddle handles VAT calculation, collection, filing, and remittance across all EU member states. With Stripe, you need Stripe Tax plus a tax filing service plus VAT registrations in each country.
High-volume SaaS ($500K+ MRR)
You have significant revenue and every basis point of transaction fees matters to your margins.
At $500K MRR, the fee difference is substantial. Stripe at 2.9% costs roughly $14,500/mo. Paddle at 5% costs roughly $25,000/mo. That $10,500/mo savings funds a finance ops person to handle tax compliance.
SaaS focused on reducing involuntary churn
Failed payments are a significant source of churn and you want to maximize payment recovery.
Sequenzy layers multi-step dunning email sequences on top of either Stripe or Paddle payment retries. The combination of platform-level retries plus Sequenzy email sequences recovers 25-40% more failed payments than either platform alone.
Solo founder with no finance team
You do not have an accountant or finance person and do not want to deal with tax compliance.
Paddle eliminates the need for a finance team by handling all tax compliance as merchant of record. You receive net payouts and never think about sales tax again.
Marketplace or platform business
You need to split payments between your platform and sellers/service providers.
Stripe Connect is purpose-built for marketplace payment splitting, seller onboarding, and platform billing. Paddle does not have an equivalent offering.
PLG SaaS with trial-to-paid conversion focus
Your growth depends on converting free trial users to paid subscribers efficiently.
Sequenzy connects to Stripe or Paddle trial data and runs pre-built conversion sequences. It knows when trials start, how many days remain, and triggers the right emails at each stage without any custom webhook code.
Migration Guide
Migrating from Stripe to Paddle
Steps
- 1. Map Stripe products and prices to Paddle catalog
- 2. Export customer and subscription data from Stripe
- 3. Set up Paddle account and configure products, prices, and checkout
- 4. Build migration script to create Paddle customers and subscriptions
- 5. Replace Stripe Checkout/Elements with Paddle checkout overlay
- 6. Update webhook handlers from Stripe events to Paddle events
- 7. Migrate active subscriptions (coordinate billing cycle transitions)
- 8. Update accounting and analytics integrations
- 9. Run parallel for one billing cycle to verify accuracy
Watch Out For
- ! You become a sub-merchant. Paddle is now the merchant of record on customer invoices.
- ! Payout timing changes from daily/instant to net 7-14 day cycles
- ! Less payment method coverage (135+ methods with Stripe vs 30+ with Paddle)
- ! Existing customer payment methods do not transfer. Customers must re-enter cards.
- ! Revenue reporting changes: you see net revenue after Paddle fees and tax
Migrating from Paddle to Stripe
Steps
- 1. Set up Stripe account with products, prices, and billing configuration
- 2. Export customer and subscription data from Paddle
- 3. Build migration script to create Stripe customers and subscriptions
- 4. Implement Stripe Checkout or Elements for new purchases
- 5. Set up tax compliance (Stripe Tax or third-party like TaxJar)
- 6. Configure webhook handlers for Stripe subscription events
- 7. Migrate active subscriptions with coordinated billing transitions
- 8. Set up accounting integrations (QuickBooks, Xero)
- 9. Register for sales tax in required jurisdictions
Watch Out For
- ! You become the merchant of record. You are now responsible for tax compliance.
- ! Must register for sales tax/VAT in all jurisdictions you sell into
- ! Customer payment methods do not transfer from Paddle to Stripe
- ! You need to handle chargebacks directly (Paddle handled them before)
- ! Revenue will be reported gross, not net of fees and tax
The Bottom Line
Choose Stripe if...
- ✓ You want maximum control and flexibility over your billing experience
- ✓ Transaction fees matter to your margins (especially at $100K+ MRR)
- ✓ You need 135+ payment methods and currencies for global reach
- ✓ You have engineering capacity to build and maintain billing integrations
- ✓ You need advanced features like usage-based billing, Connect, or Radar
- ✓ You want daily or instant payouts for better cash flow
Choose Paddle if...
- ✓ You want zero tax compliance burden (no registration, filing, or remittance)
- ✓ You are a small team and cannot afford to spend engineering time on billing ops
- ✓ You sell internationally and do not want to deal with VAT in 27+ EU countries
- ✓ You prefer a turnkey solution over maximum flexibility
- ✓ You do not want to handle chargebacks and payment disputes
- ✓ You are OK with the higher per-transaction fee for operational simplicity
Frequently Asked Questions
What does "merchant of record" mean and why does it matter?
A merchant of record (MoR) is the entity that appears on the customer invoice and is legally responsible for the transaction. With Stripe, your company is the merchant of record. You collect payments, handle tax compliance, and manage disputes. With Paddle, Paddle is the merchant of record. They sell your software on your behalf, collect the payment, handle tax, and pay you the net amount. This matters for tax compliance: with Paddle, you never file sales tax or VAT returns. With Stripe, you are responsible for registering, filing, and remitting taxes in every jurisdiction where you have customers.
Is Paddle really worth the higher transaction fee?
It depends on your volume and team. At low volume (under $50K MRR), the difference between 2.9% and 5% is a few hundred dollars per month, which is far less than hiring a tax accountant or subscribing to tax compliance tools. At high volume ($500K+ MRR), the fee difference becomes significant ($10K+/mo), and it becomes more cost-effective to use Stripe and handle tax compliance yourself. The breakeven point varies by the complexity of your tax obligations.
Can I use both Stripe and Paddle simultaneously?
Some companies do, though it adds complexity. A common pattern is using Stripe for direct enterprise sales and Paddle for self-serve international sales where tax compliance matters most. However, running two billing systems increases operational complexity. Most SaaS companies are better off choosing one and building their stack around it.
How does Sequenzy work with Stripe and Paddle?
Sequenzy integrates natively with both Stripe and Paddle. When you connect your billing provider, Sequenzy automatically syncs subscription events (trial start, payment success, payment failure, upgrade, downgrade, cancellation) and uses them to trigger lifecycle email sequences. You do not need to set up webhooks manually. Sequenzy translates billing events into email triggers for dunning, trial conversion, onboarding, and churn prevention.
What happens to my existing subscriptions if I switch from Stripe to Paddle (or vice versa)?
Migrating active subscriptions between billing providers is one of the most complex operations in SaaS. Customer payment methods do not transfer. You need to either: (1) migrate all active subscribers at once (risky, requires customers to re-enter payment details), or (2) keep existing subscribers on the old platform and route new subscribers to the new one (operationally complex). Most companies that switch use the dual-run approach, letting existing subscriptions expire naturally while new ones go to the new provider.
Does Stripe Tax fully replace Paddle for tax compliance?
No. Stripe Tax calculates the correct tax amount and adds it to invoices, but you are still responsible for registering for sales tax in each jurisdiction, filing returns, and remitting the collected tax. Stripe Tax handles the "how much" but not the "filing and paying." You need a service like TaxJar, Avalara, or an accountant to handle the filing and remittance. Paddle handles the entire tax lifecycle end-to-end.
Which platform has better fraud protection?
Stripe Radar is significantly more sophisticated, using machine learning trained on billions of transactions to detect fraud. You can also create custom fraud rules. Paddle provides basic fraud protection as part of being the merchant of record, and Paddle absorbs the risk of fraudulent chargebacks. For most SaaS companies, both are sufficient, but Stripe gives you more control over fraud rules.
Can I offer free trials with both platforms?
Yes. Stripe supports trial periods on subscriptions via API, with options for card-up-front or no-card trials. Paddle supports trials natively in their checkout flow. In both cases, you can configure trial duration and behavior when the trial ends. Sequenzy adds value by automatically triggering trial conversion email sequences when connected to either platform.
How do payouts work differently between Stripe and Paddle?
Stripe offers daily automatic payouts (or instant payouts for an extra fee). You receive the gross amount minus Stripe fees. Paddle operates on net payout cycles, typically every 1-2 weeks. You receive the net amount after Paddle deducts their fee and any taxes collected. Stripe gives you better cash flow visibility. Paddle gives you simpler accounting since taxes are already handled.
Which billing platform is better for B2B SaaS specifically?
Both work well for B2B SaaS, but they shine in different areas. Stripe is better for complex billing scenarios (usage-based, per-seat, enterprise quotes), has a larger ecosystem, and offers more customization. Paddle is better for SaaS companies selling internationally that want zero tax compliance hassle. For the email layer on top of either platform (dunning, trial conversion, lifecycle emails), Sequenzy integrates natively with both.