Stripe’s developer-friendly APIs have set the bar for online payments, but many bootstrapped founders face pain points (high fees, limited regional support, and compliance headaches) when using Stripe. Many startups, for example, struggle with Stripe’s unavailability in certain markets and with accumulating transaction costs on small sales.

These challenges motivate exploring alternatives that simplify billing and taxes or offer no-code storefronts. For instance, a growing trend is using Merchant-of-Record (MoR) platforms that handle VAT/GST and global payment methods for you.

Stripe alternatives often target specific needs of indie and bootstrap founders:

• Transaction Fees & Pricing: Stripe’s base fee (~2.9% + $0.30) can be high for microtransactions or digital bundles. Some alternatives bundle more services into a single cut or offer volume-based discounts.

• Global Availability: Stripe is not supported in every country. Alternate solutions offer their services worldwide.

• Tax Compliance: Cross-border digital sales trigger complex VAT/GST rules. Stripe leaves tax remittance to you (or integrates separate tools like TaxJar). Many alternatives fully handle sales tax/VAT as the MoR, relieving founders from filing obligations.

• Digital Goods & Subscriptions: Startups selling software, online courses, or digital downloads may need features like license key generation, native subscriptions, affiliate programs, or embedded checkout pages. Some competitors offer these out-of-the-box, whereas using Stripe often requires stitching together multiple plugins or building custom logic.

• Ease of Integration: Not all founders are engineers. Unlike Stripe’s code-centric setup, some alternatives provide hosted storefronts or simple checkout builders. This lets creators start selling in minutes without writing any code.

By exploring these alternatives, founders can often launch faster or avoid piecing together tax and billing tools on their own.

Lemon Squeezy

Overview: Lemon Squeezy is an all-in-one SaaS and digital goods commerce platform (now a Stripe-owned MoR service). It provides hosted storefronts, secure file delivery, license key management, and full subscription tools.

As a Merchant of Record, Lemon Squeezy automatically calculates and remits global VAT/sales taxes on each sale. It handles fraud checks and offers coupons, dunning, and even basic affiliate tracking. Effectively wrapping much of Stripe’s ecosystem into a single service.

Key Features: One-off sales, recurring plans, license keys and serials, native Stripe/PayPal/Apple Pay and crypto payments, EU VAT handling, coupon codes, dunning emails, affiliate payouts. No-code embedded checkout or customizable storefront.

Pricing: No monthly fee. The platform charges 5% + $0.50 per transaction (all-in), which is higher than Stripe alone but includes tax/fraud services. The fee is fixed across plans – you simply pay per transaction as you go.

Strengths: Extremely easy setup (ideal for non-technical founders), bundled tax and fraud protection, and rich digital-product features. Because Stripe acquired it in mid-2024, trust and infrastructure are strong. Lemon Squeezy’s team emphasizes serving small software makers who want a “sell-without-code” experience.

Weaknesses: The 5% fee is steep for large volumes or high-ticket items. Payouts run on a weekly schedule (unlike Stripe’s 2-day roll). And some founders worry about future changes now that it’s part of Stripe’s empire (though as of 2025 it still operates independently).

Ideal For: Solo SaaS founders and indie creators who need subscriptions, in-app products or digital downloads up immediately with minimal dev work. If you want built-in VAT handling and storefront features from day one, Lemon Squeezy is a top pick.

Dodo Payments

Overview: Dodo Payments (launched 2023) is a global MoR targeting SaaS, AI tools, and digital startups – especially those in India, Africa, and South Asia. It was founded to solve the “very hard” problem of cross-border payments for emerging-market developers. Dodo offers a developer-friendly API and dashboard but abstracts away taxes and compliance.

Key Features: As a Merchant of Record, Dodo takes care of invoicing, multi-country VAT/GST, chargebacks/fraud, and remittance. It supports one-time purchases, recurring billing, and usage-based plans. Crucially, it includes many local payment methods (UPI, Pix, Alipay, mobile wallets, etc.) tailored to diverse regions.

Pricing: The current rate is 5% + $0.50 per transaction (recently offered 4%+ $0.40 for early adopters), with no monthly or setup fees. This single fee covers processing, MoR services, and multi-currency conversion. (Dodo’s model is to serve founders with low up-front costs, so they take a bigger share per sale.)

Strengths: Very global-first, that means it covers 190+ countries and dozens of alternative pay methods. End-users in multiple currencies see local checkout flows, while the founder gets USD/INR/NGN/etc. payouts net of fees. Dodo’s founders (and many early users) praise its “smooth integration” and the ease of launching in markets where Stripe struggles. Support is noted to be responsive and hands-on for indie customers.

Weaknesses: It’s a newer entrant with a smaller team, so the roadmap is still growing. Flat 5% can be high if you sell mostly domestically (versus Stripe’s ~2–3%). And because it’s an MoR, Dodo controls reserves and payout timing (often weekly), which may delay access to funds versus Stripe’s faster payouts.

Recent Feedback: Developers on Product Hunt rave about Dodo’s reliability and breadth of coverage. For example, multiple reviewers highlight its “quick, reliable integration” and that it just works “without Stripe headaches.” Users specifically note the value of UPI and other local options, and that Dodo’s documentation and support are pro-active.

Ideal For: Founders in India, Africa, South Asia, or any region where Stripe has gaps. If you want to sell globally with minimal tax hassle and offer local checkout options (or if you need an Indian/Rupee settlement path), Dodo is compelling.

Startbutton Africa

Overview: Startbutton Africa (previously called Cream.io) is a Nigeria-based payment platform (by Startbutton) built for African creators, developers, and small businesses to sell digital products worldwide. It too serves as a Merchant of Record: handling local regulatory compliance, multi-currency flows, and mobile money. The goal is to let Nigerian (and other African) entrepreneurs sell globally without setting up offshore entities.

Key Features: Focuses on content creators and indie SaaS. Supports one-time sales, subscriptions/memberships, and recurring billing. Integrates African mobile money and currency (NGN, GHS, etc.) payment methods alongside credit cards. Automatically manages taxes and currency conversion – local sellers simply set prices in local currency and get paid in USD/NGN.

Pricing: Public rates are not fully published, but it’s believed to be around 5% per transaction (similar to other MoRs) with no monthly fees. The emphasis is on affordability for small creators.

Strengths: Offers deep local expertise in African markets. By acting as the sales entity, startbutton removes foreign-exchange and VAT headaches from the founder. Early adopters point out that it “removes regulatory barriers” so even very small Nigerian businesses can reach customers in Europe or the US seamlessly.

Weaknesses: Startbutton is a very young platform (launched ~2023) with limited documentation and tools today. It has less brand recognition outside Nigeria. The feature set is simpler – you may not get advanced APIs or complex subscription logic yet. And as with any MoR, the payout schedule is weekly or longer.

Contextual Insight: For instance, industry analysts note that companies like Startbutton are helping African firms by acting as a cross-border “merchant of record,” so startups can accept payments and comply with foreign laws without local offices. It plays this role: it’s effectively a “business-in-a-box” for creators in underbanked regions.

Ideal For: Nigerian and African indie developers, artists, and small SaaS businesses who want a global audience. If you’re selling online courses, music, apps, or SaaS and don’t want to navigate forex and VAT on your own, startbutton makes it largely automatic.

Polar

Overview: Polar (polar.sh) is a modern, developer-focused payment platform that calls itself “the best monetization platform for developers.” It began as an open-source project and now offers a full SaaS/MoR service. Polar stands out by emphasizing transparency, community, and flexible billing: it was originally built by indie makers and exposes a powerful API/CLI for custom setups.

Key Features: Polar supports one-time purchases, recurring plans, membership products, and usage-based (metered) billing. You can issue license keys or entitlements to users. It functions as a Merchant of Record (handling VAT/GST automatically) and supports global payments. Notably, Polar’s entire backend is open source, so it’s very plug-and-play if you have developers on hand.

Pricing: Very competitive: 4% + $0.40 per transaction (this is a flat rate that includes payment processing costs). There are no monthly fees or hidden costs. (For context, this is often ~20% lower than comparable MoRs – e.g. Paddle or Lemon Squeezy.)

Strengths: Polar’s open-source ethos and low fees appeal to technical founders. Its API is rich: you get webhooks and control over subscriptions or metered usage. Reviewers praise the modern design and the fact that it “just works” with minimal coding. Users highlight “reliable global scaling, seamless subscriptions and taxes” and appreciate having full control of their payment stack. Because it’s open source, there’s extra trust and community around it.

Weaknesses: Polar is still growing its user base and brand visibility. Non-developers may find fewer drag-and-drop tools compared to Lemon Squeezy or Paddle. Also, Polar currently relies on Stripe (and other processors) under the hood – so it inherits any Stripe country limitations. If Stripe doesn’t support your country, Polar alone can’t fix that.

Ideal For: Tech-savvy SaaS or API companies that need granular billing (e.g. pay-as-you-go usage models) and want a low-fee MoR. Polar is great if you have developers who want to integrate billing deeply, or if you run open-source projects and want an open platform. It’s essentially a lighter-weight Lemon Squeezy for coders.

Paddle

Overview: Paddle is one of the most established Stripe alternatives in the SaaS space. It brands itself as “the complete payment infrastructure” for software companies, acting as a full Merchant of Record. With origins in 2012, Paddle handles subscription upgrades/downgrades, VAT/GST compliance in 200+ countries, fraud, and analytics – all in one package. Many growing SaaS and B2B software companies use Paddle to offload billing work.

Key Features: Robust subscription management (trials, prorations, metered usage optional via add-ons), instant VAT/GST calculation and remittance globally, smart routing to acquiring banks, and built-in ProfitWell analytics. It offers hosted checkout and embeddable paywalls, with PayPal and local payment methods supported. Paddle also has a network of integration partners and customer success teams for scale-ups.

Pricing: 5% + $0.50 per transaction (pay-as-you-go). This covers everything (processing, tax, fraud, etc.). Paddle also offers custom pricing for large enterprises.

Strengths: Very battle-tested – Paddle powers many midmarket and enterprise SaaS companies worldwide. Its subscription features are extremely polished (handling upgrades/downgrades, volume/seat pricing, coupons, etc.). The tax engine is mature, and Paddle will automatically file VAT/GST on your behalf in Europe and other regions (taking on the “tax liability” so you don’t have to). The support and documentation are professional, and you scale from SMB to global B2B with fewer headaches.

Weaknesses: Less flexible if you need a fully custom checkout flow or if you sell only to end consumers (Paddle has more B2B/SaaS focus). The 5%+ fee can be substantial on large transactions (though often negotiable for big sellers). Onboarding requires a full KYC/underwriting process (since Paddle is the seller of record). And like any MoR, Paddle pays out on a weekly/monthly schedule (no instant payouts).

Ideal For: SaaS and software companies (both B2B and B2C) that want a turnkey global billing solution. If you need advanced subscription logic (multi-tier, seat-based, usage billing) and don’t want to build it yourself, Paddle is a top choice. It’s especially popular for EU-based SaaS vendors who rely on its EU VAT automation, and for companies wanting robust analytics and support.

Gumroad

Overview: Gumroad is a simple, creator-focused platform for selling digital products (ebooks, courses, memberships, art, etc.). It’s not a traditional “gateway” – think of it as a hosted shop + payment processor. Gumroad handles sales tax/VAT for its sellers (MoR for EU/US taxes) and delivers digital files or content to customers. It’s designed for speed: you can literally start selling in minutes by uploading a file or linking a membership.

Key Features: Hosted product pages with embedded buy buttons, instant file delivery and updates, support for pay-what-you-want pricing, discount codes, affiliate links, and basic monthly subscriptions. You get a customer library page and can send update emails. There’s no separate storefront website needed.

Pricing: On the Free plan, Gumroad takes 10% + ~3% payment fee on each sale (effectively ~13% total). There is a paid “Premium” plan (around $10–$20/month) that lowers Gumroad’s fee to 3.5% + ~3% (around 6–7%). Either way, fees are higher than most others, reflecting Gumroad’s simplicity.

Strengths: Extremely quick to launch – non-technical founders often praise how you can have a link up in minutes. It handles EU VAT and similar taxes automatically. It’s optimized for small creators and has a known, trusted checkout flow for buyers. Gumroad also has built-in affiliates and a marketplace/discovery feature (customers can browse related creators).

Weaknesses: The fees (~10–13%) are high for any sizable business. Customization is limited (your page has Gumroad branding and not much design control). Advanced SaaS features are mostly absent (no native proration or complex plans). Gumroad support is minimal. The platform is ideal for low-volume creative sales but not for scaling bigger SaaS.

Ideal For: Individual creators (writers, designers, artists, course authors) launching an MVP or testing a product with no investment. Great for digital goods and small memberships when you just want something up NOW. Most people who start on Gumroad eventually migrate off it once they outgrow its simplicity or want lower fees.

FastSpring

Overview: FastSpring is a veteran full-stack ecommerce/MoR platform for software, games, and digital products (founded 2005, now owned by Formstack). It offers hosted pop-up checkouts and full web stores, subscription billing, license key management, and a complete tax/fraud solution. FastSpring’s clientele tends to be mid-to-large software companies that need a heavy-duty, enterprise-grade system.

Key Features: Choice of popup or embedded checkouts, support for a dozen license-key models, comprehensive affiliate marketing tools, and multi-currency pricing. Extensive localization (languages, currencies, local payment options). Advanced B2B features like invoicing, quotes, purchase orders, and merchant of record for cross-border sales.

Pricing: Two main fee tiers: 5.9% + $0.95 (standard) or 8.9% flat (for high-risk products or lower volumes). These include all transaction, processing, and MoR costs. Volume discounts and custom contracts are available for large partners.

Strengths: Extremely robust and reliable (over 18 years in business). FastSpring’s feature set is arguably the most complete for software: subscriptions, licensing, affiliates, tax – all without add-ons. It’s proven in global markets and handles EU VAT, cross-border compliance, and fraud expertly. FastSpring’s onboarding and support are known to be thorough (they vet sellers carefully).

Weaknesses: The interface and integration can feel dated and complex. The fees are among the higher ones listed here, which can squeeze thin-margin products. FastSpring may be overkill for a simple indie project. Set-up time is significant (due diligence, contract negotiation). Payouts and reserves are usually conservative.

Ideal For: Established or growth-stage software companies that sell globally (especially downloadable desktop or SaaS) and need a full suite (including licensing and affiliates) plus white-label storefront options. If you need a battle-tested solution and can afford a higher cut for the reliability and support, FastSpring fits well.

2Checkout (now Verifone)

Overview: 2Checkout (rebranded under Verifone) is a longtime global payments provider. It offers both a simple gateway and a full MoR service (the “2Monetize” plan). It’s particularly known for its broad international coverage – supporting merchants in countries where Stripe is unavailable – and for an affiliate network (formerly Avangate). Many small businesses use 2Checkout for one-time sales or subscriptions.

Key Features: PayPal and card processing in 45+ currencies and 30+ languages, subscription billing, localized checkouts, fraud management. As an MoR (2Monetize), 2Checkout handles global taxes and compliance. It also includes an affiliate/reseller network (attracting software resellers). You can choose plans: 2Sell (just a gateway, ~3.5%), 2Subscribe (adds subscription tools, ~4.5%), or 2Monetize (full MoR, ~6% + $0.60).

Strengths: Unmatched international reach – supports merchants in most countries worldwide. Lots of local payment method support (including region-specific e-wallets). The affiliate network can help drive software sales. Enterprise-grade fraud filters. Flexible plan options let you pick what you pay for. No monthly fee on basic plans (just per-transaction).

Weaknesses: The system and dashboard are often criticized as complex or outdated. Onboarding can be slower (KYC process). Some users report sluggish support and the annoyance of rolling reserves. The full MoR fee (around 6–8%) is on the high side. While it covers everything, the platform is less streamlined for pure SaaS than a Paddle or Lemon Squeezy.

Ideal For: Startups in countries unsupported by Stripe who need immediate global payment solutions. It’s also suitable for software/SaaS businesses that sell via affiliates or need licensing tools (a nod to its Avangate roots). The affiliate features make it good for independent software vendors seeking additional distribution channels.

Choosing the Right Provider: Recommendations

There’s no one-size-fits-all answer; pick based on your market, product, and stage:

• Location & Markets: If Stripe isn’t even in your country, alternatives like Dodo or 2Checkout become a necessity. For Europe-wide sales, Paddle or FastSpring (with strong EU VAT automation) can be great.

  
  

• Business Model:

  • Pure SaaS: Look at Paddle, Polar, or Dodo for built-in subscriptions and usage billing.

  • One-time digital downloads or content: Lemon Squeezy and Gumroad are optimized for single purchases or lightweight membership.

  • Desktop apps & licenses: FastSpring or 2Checkout have mature license-key and affiliate features (FastSpring excels at license management; 2Checkout provides affiliate marketing).

    
    

• Stage & Scale:

  • MVP/Launch: Gumroad or Lemon Squeezy let you sell immediately with no coding (albeit at higher fees).

  • Growing revenue: Consider moving to Polar (for lower fees) or Paddle (for advanced analytics and scaling support).

  • Enterprise/B2B: Paddle and FastSpring handle invoicing, B2B sales, and complex tax needs.

    
    

• Technical Resources:

  • Non-technical/No-code: Lemon Squeezy, Gumroad, and FastSpring offer more drag-and-drop solutions and hosted pages.

  • Developer-friendly: Polar, Paddle, or 2Checkout (with robust APIs) suit a technical team.

    
    

• Cost vs. Convenience: Remember, MoR services charge higher per-sale fees but include taxes, fraud, and subscriptions. Ask yourself if bundling these services is worth the extra percentage. Migrating later is possible but non-trivial (especially for subscribers), so try to choose a solution that can grow with you.

In summary: Map your needs to these strengths. Lemon Squeezy and Gumroad are excellent for instant launches. Dodo and Cream/Startbutton unlock international sales for emerging-market founders. Polar is the open-source, low-fee choice for coders. Paddle and FastSpring bring enterprise SaaS billing prowess (at a premium). 2Checkout remains a fallback for truly global reach and affiliate marketing. The right platform will let you focus on building your product, not wrestling with payments.

Frequently Asked Questions

Q: Why consider a Stripe alternative if Stripe works in my region?

A: Even if you can use Stripe, another platform might save you time or money. Alternatives often handle taxes and compliance for you (e.g. automatic VAT remittance), which Stripe does not by itself. Some offer no-code storefronts, built-in license or affiliate tools, or native local payment options. The question is whether the extra convenience of an all-in-one provider outweighs Stripe’s slightly lower processing fee.

Q: What is “Merchant of Record” (MoR)?

A: An MoR is a service that legally sells your product on your behalf. It handles transaction processing, fraud liability, currency conversion, and sales tax/VAT remittance. You simply get paid the net proceeds. This simplifies international selling: instead of registering in every country, the MoR front-ends the sale and takes on compliance.

Q: Which platform is best for a non-technical founder?

A: Gumroad is the simplest to set up — just upload a product and share a link. Lemon Squeezy also offers a user-friendly dashboard and hosted store, with more advanced subscription and tax features compared to Gumroad.

Q: Is paying 4–6% worthwhile compared to Stripe’s ~3%?

A: It can be. If you would otherwise spend time or money integrating billing, taxes, and dunning tools, an MoR consolidates that work. The higher fee often buys back time so you can focus on selling and product development.

Q: Who handles complex subscriptions (like usage-based billing)?

A: Polar is strong for metered/usage billing and developer-friendly controls. Paddle also handles prorations, tiered plans, and enterprise subscriptions well.

Q: What if I switch later (e.g. move off Gumroad/Lemon Squeezy)?

A: Migration can be tricky if customers have recurring payments, since some may need to re-enter payment info. Some providers support secure token transfers, but not all. If you expect to grow, pick a platform with easy export or customer management. Many founders still start simple and accept possible migration friction later.

Q: Which providers are friendliest to emerging-market founders?

A: Dodo Payments explicitly supports India, Africa, South Asia, etc. Cream (Startbutton) serves Africa. 2Checkout historically accepts merchants in many regions that larger players don’t.

Q: I sell desktop software needing license keys. Which is best?

A: FastSpring specializes in license key distribution and has advanced affiliate tools. Paddle also supports licenses and coupons well. Lemon Squeezy offers a simpler license feature (fine for straightforward needs). For more complex cases, FastSpring or 2Checkout are good options.

Q: What about affiliate programs?

A: Lemon Squeezy and Gumroad include basic affiliate tools. FastSpring and 2Checkout offer more sophisticated affiliate networks. Paddle integrates with PartnerStack but doesn’t have its own affiliate dashboard.

Q: Do these platforms pay out instantly like Stripe?

A: Generally no. Because they assume tax and fraud liability, most MoR services pay weekly or monthly with a short reserve. This is slower than Stripe’s 2-day rolling payouts, so if cash flow is critical, check payout terms before choosing.