Paddle Technology Intelligence

What is Paddle?

Paddle is a merchant of record platform for SaaS and software companies. As the seller of record, Paddle handles global payments, taxes, compliance, and subscription management so companies can focus on product.

Used by thousands of software companies, Paddle removes the complexity of international sales by taking on the legal and financial responsibility of being the merchant.

Key Features

Merchant of Record

• Payments: Global processing
• Taxes: VAT, GST, sales tax
• Compliance: Regional regulations
• Liability: Paddle assumes

Subscriptions

• Billing: Recurring payments
• Dunning: Failed payment recovery
• Trials: Free trial management
• Upgrades: Plan changes

Checkout

• Overlay: Embedded checkout
• Localization: Multi-currency
• Methods: Card, PayPal, Apple Pay

Use Cases

SaaS Companies

Software companies sell subscriptions globally without tax entity setup. Paddle handles compliance in 200+ countries.

Desktop Software

Mac and Windows app developers use Paddle checkout. License key management and software updates included.

B2B Sales

Enterprise software companies need proper invoicing. Paddle provides tax-compliant invoices for business customers.

International Expansion

Companies expanding globally avoid tax registration complexity. Paddle is the legal seller in each jurisdiction.

Code Examples

Checkout Overlay

// Open Paddle checkout
Paddle.Checkout.open({
    product: 12345,
    email: '[email protected]',
    successCallback: function(data) {
        console.log('Purchase complete:', data.checkout.id);
    }
});

Subscription API

curl -X POST "https://api.paddle.com/subscriptions" \
  -H "Authorization: Bearer API_KEY" \
  -d '{
    "price_id": "pri_123456",
    "customer_id": "ctm_789"
  }'

Webhook Handler

app.post('/paddle/webhook', (req, res) => {
    const { event_type, data } = req.body;
    if (event_type === 'subscription.activated') {
        provisionAccess(data.customer_id);
    }
    res.sendStatus(200);
});

Comparison

vs Stripe

• MoR: Paddle is merchant of record
• Taxes: Paddle handles compliance
• Fees: Paddle higher but all-inclusive

vs FastSpring

• Modern: Paddle better DX
• API: Paddle more flexible
• Similar: Both MoR providers

Why Paddle

• Complete tax compliance
• Global payment processing
• No tax registration needed
• Modern developer experience