Paddle vs FastSpring: fees and tax

FastSpring vs Paddle: one rate is public

You are down to these two for software or a digital product, and the fee is what splits them.

Paddle's pricing page lists the standard rate: 5% + 50¢ per checkout transaction on the pay-as-you-go plan. That price covers payments, checkout, billing, global tax compliance, fraud protection, chargebacks and payment-related buyer support. Extra payment methods and moving existing subscriptions are included. The plan has no monthly fee.

On the smaller charge, half of what Paddle keeps is the fixed part of the rate. On the larger charge, most of what Paddle keeps is the percentage. Both rows apply the cut to the charge before sales tax is added.

Below that smaller charge, the fixed part is the larger share of the cut. The pricing page offers custom pricing for products at those lower prices, and again for high volume.

FastSpring's own site describes a flat, all-inclusive fee. One charge covers payments, tax compliance, subscriptions and checkout, and the price is not broken out by feature. FastSpring puts the exact percentage in the custom figure it prepares for your products.

Use the calculator linked above for the Paddle side, then ask what FastSpring would charge for the same products in the same countries. G2's FastSpring vs Paddle page lists Paddle's entry price and has no FastSpring figure next to it.

Both platforms are the legal seller

The buyer pays the platform, and the platform pays you.

Tax registration, card-data duties, refunds and chargebacks sit with that platform. FastSpring says it handles tax collection and remittance, compliance and chargeback management. Paddle's tax page says it registers, charges and remits sales tax in over 100 jurisdictions. The homepage says this covers 300+ markets.

The products these two will sell are digital. Paddle's acceptable-use page says it is built for software companies, including B2B SaaS, consumer software and games. Human services, such as consulting or design, fall outside that scope. Selling physical goods does too. FastSpring's own description covers SaaS, software, digital products, games and AI. Supplements, shipped goods and business-opportunity offers are the cases the digital-products guide sends elsewhere.

Each of these two is the only processor on the order. Same-URL split testing, and a split of the sale across your own merchant accounts, are outside what either product does. If you need one URL for an ad while the checkout changes, or you need to split the first sale across your own merchant accounts, the digital-products guide covers those cases.

Paddle is the account you can price before you apply

The homepage shows a Get started button beside a demo booking, so the signup path is on the site.

Retain, on that same page, recovers failed payments and reduces cancellations.

Payouts follow a fixed schedule. Paddle's payout page says you cannot pull your balance whenever you want, because payouts go out once a month. The payout runs on the 1st when the balance is at least $100. Paddle sends the money by the 15th.

Support is the complaint that shows up when founders put the two side by side. On a thread about choosing between them, founders say Paddle leaves support emails unanswered. Suspensions and held balances are the other account risk. A second provider, already approved, is the practical answer to that risk.

FastSpring fits affiliates and B2B deals

FastSpring has been in this business longer than Paddle.

FastSpring's site highlights features for partner channels and for sales-led deals. Affiliate marketing is one of them. Interactive quotes cover deals a buyer accepts before paying. A partner program, or a proposal before checkout, is the reason to wait for FastSpring's figure.

A seller who has used both, writing on a FastSpring vs Paddle thread, credits FastSpring with more room to customize checkout, products and fulfillment. On a separate processor thread, a founder who kept FastSpring on the shortlist disliked the screens a buyer sees. The card statement carries a FastSpring descriptor. Buyer confusion over that descriptor is a real cost, and a finance lead should weigh it before switching.

My take

I would start with Paddle for self-serve SaaS or a digital download. The rate is public, tax filing is in that rate, and the homepage has a signup path.

I would ask FastSpring for its fee when sales run through affiliates, when a deal needs a proposal first, or when the company wants one negotiated number for a global software catalog. If FastSpring's figure is lower than Paddle's cut on your prices, FastSpring is the cheaper option.

The longer write-ups are the full Paddle review and the full FastSpring review. Lemon Squeezy vs FastSpring is the neighbouring pair. Legal seller or your own processor is the page for whether your company should stay the seller of record.