Why Consider a Stripe Alternative?

Stripe has set the standard for developer-friendly payment processing, but bootstrapped startups may face specific challenges with it:

• Transaction Fees & Costs: Stripe’s fees (around 2.9% + $0.30 in many markets) can add up, especially when layering on subscription billing or fraud tools. Some alternatives offer simpler or more competitive pricing for smaller businesses.

• Global Availability: Stripe is not available to merchants in every country, creating a hurdle for founders in regions like parts of Africa, the Middle East, or South Asia. Alternatives may support those geographies or act as a Merchant of Record to handle cross-border transactions.

• Tax Compliance: Handling VAT, GST, and sales tax is non-trivial. Stripe leaves tax compliance to you (or requires extra services). Several competitors act as a Merchant of Record—meaning they handle sales tax collection and remittance on your behalf. This is a major relief for indie SaaS and digital product sellers who don’t want to become tax experts.

• Digital Goods & Subscriptions: Early-stage startups selling software, SaaS subscriptions, or digital downloads might need features like license key management, subscription billing, pay-what-you-want pricing, or built-in affiliate programs. Stripe is flexible but typically requires extra coding or paid add-ons to achieve these. Some alternatives come with these tools out of the box.

• Ease of Integration: Not all founders are developers, and even developers appreciate speed. Stripe is code-focused. Some alternatives provide no-code checkout pages or storefronts, which can be a faster path to selling for a solo founder.

By exploring Stripe alternatives, bootstrapped founders can find a solution that better fits their use case—whether that’s selling digital goods globally without worrying about VAT, or quickly enabling recurring subscriptions with minimal coding.

Overview of the 8 Alternatives

We’ll look at the following Stripe competitors particularly suited for bootstrapped or indie startups:

1. Lemon Squeezy – An all-in-one commerce platform (Merchant of Record) for software and digital products.

2. Dodo Payments – A global Merchant of Record focused on cross-border payments for startups (especially from emerging markets).

3. Cream (Cream.io) – A Nigeria-based platform helping creators monetize content globally as Merchant of Record.

4. Polar – A developer-centric, open-source monetization platform (MoR) with usage-based billing and subscription tools.

5. Paddle – A mature Merchant of Record solution for SaaS, handling payments, subscriptions, and taxes end-to-end.

6. Gumroad – A simple platform for creators to sell digital goods and memberships with minimal setup.

7. FastSpring – A full-service ecommerce/MoR platform for software & SaaS, with robust global tax and billing features.

8. 2Checkout (Verifone) – A veteran payment platform offering multiple plans for global merchants (including MoR for digital sales).

We’ll discuss each provider’s core strengths, weaknesses, pricing, geographic reach, and typical use cases. A summary comparison table is also provided for quick reference.

Comparison Table: Stripe Alternatives for Startups

Note: All providers above support recurring billing (subscriptions) and digital goods. All act as Merchant of Record (handling tax compliance) unless you choose a basic gateway plan. Transaction fees can vary based on volume, currency, and other factors—check each provider for the latest.

1. Lemon Squeezy

Overview:

Lemon Squeezy is an all-in-one platform for selling software and digital products, positioned as a Merchant of Record service. It handles global payments, subscription billing, sales tax/VAT compliance, fraud prevention, and even offers built-in marketing tools. For a bootstrapped SaaS or indie maker, Lemon Squeezy essentially wraps payment processing and digital delivery into one package so you can focus on your product. Stripe reportedly acquired Lemon Squeezy in 2024, which may raise questions about its future direction, but as of 2025 it continues to operate as a distinct service.

Key Features:

• One-time purchases, recurring subscriptions, and payment plans.

• Advanced features like license key generation and secure file delivery for digital downloads.

• Hosted storefront and checkout (no coding needed) or embedded checkout overlays on your site.

• Acts as Merchant of Record—handles VAT/sales taxes globally.

• Supports 95 currencies and multiple payment methods (credit cards, PayPal, Apple Pay, etc.).

Pricing:

• No monthly fees; transaction fee of 5% + $0.50 per transaction.

• Includes payment processing, tax handling, fraud protection, and other features in that single cut.

• Higher than Stripe’s base fee but covers tax filing, multiple payment gateways, etc.

Strengths:

• Extremely easy setup; great for non-technical founders.

• Comprehensive digital product selling features (subscriptions, dunning, coupons, affiliates).

• No monthly cost—strictly pay-per-transaction.

• Handles EU VAT and sales tax automatically.

Weaknesses:

• Higher transaction fee of 5% + $0.50 can be steep for high-volume or high-ticket products.

• Payout schedules may be slower than Stripe’s typical 2-day rolling schedule.

• Recent acquisition by Stripe creates some uncertainty about long-term direction.

Use Case:

Ideal for bootstrapped SaaS startups, makers, and creators selling digital goods or software globally who want a no-fuss setup. If you need subscriptions or license-based billing from day one without building custom integrations, Lemon Squeezy is a strong option.

2. Dodo Payments

Overview:

Dodo Payments (founded in 2023) positions itself as a global Merchant of Record for startups and SaaS businesses. Based in India, its mission is to make global payments simple for international indie founders—especially those who struggle with local gateways, cross-border taxes, or compliance barriers. Dodo wants to enable entrepreneurs worldwide to accept payments from customers anywhere, without worrying about complicated backend logistics.

Key Features:

• Acts as Merchant of Record: handles multi-country tax compliance, invoicing, fraud, chargebacks.

• Supports subscriptions and one-time payments.

• Emphasizes alternate payment methods popular in various regions (Alipay, Pix, UPI, mobile wallets, etc.).

• Developer-friendly API and a dashboard for managing customers, subscriptions, and billing logic.

Pricing:

• Transaction fee of 5% + $0.50; a temporary 4% + $0.40 rate for beta users.

• No monthly fees, no setup costs.

• Focus on helping founders in emerging markets sell cross-border.

Strengths:

• True global-first approach, supporting 190+ countries.

• Excellent for international payment methods, cross-border compliance, and local currency acceptance.

• Responsive, customer-focused team (especially for early-stage bootstrappers).

• Handles VAT/GST for you.

Weaknesses:

• A newer startup, so still building out features and track record.

• Potentially less brand recognition or trust compared to older players.

• Flat 5% might be high if you only sell domestically in a low-fee market.

• As an MoR, payouts are controlled by Dodo’s schedule.

Use Case:

Great for bootstrapped SaaS founders in regions where Stripe is limited or where global compliance is a major hurdle. If you sell to users worldwide and want localized payment methods under one platform, Dodo is compelling.

3. Cream (Cream.io / Startbutton)

Overview:

Cream, sometimes referred to as Cream.io, is a Stripe alternative from Nigeria. Its goal is to empower creators and startups in Africa to monetize digital content and software globally by acting as a Merchant of Record. Cream handles regulatory and payment complexities so entrepreneurs can sell worldwide without setting up entities abroad.

Key Features:

• Focused on digital content creators, small businesses, and software developers.

• MoR service means handling multi-currency payments, compliance, local African currencies, and mobile payment options.

• Supports recurring billing and membership models.

• Helps local founders bypass forex issues and reach a global audience.

Pricing:

• Estimated around 5% transaction fee (details not widely published).

• Likely no upfront or monthly fees, similar to other MoR models.

• Targets affordability for emerging-market creators.

Strengths:

• Local expertise for African entrepreneurs; covers mobile money and region-specific needs.

• Removes regulatory barriers, so even small creators can sell globally.

• Intended for digital distribution and monetization (like music, video, software).

Weaknesses:

• Very young platform with limited documentation on advanced features.

• Smaller track record internationally; fewer integrations or brand recognition outside its primary region.

• Potentially less developer tooling compared to older competitors.

Use Case:

Best for indie creators, developers, and SaaS founders in Africa (and possibly other emerging markets) who want a global audience without dealing with complex compliance or foreign exchange. Cream aims to be the “business-in-a-box” for underrepresented regions.

4. Polar

Overview:

Polar (at polar.sh) is a modern Stripe alternative built primarily for developers. It brands itself as “the best monetization platform for developers,” operating as a global Merchant of Record. Polar started as an open-source funding platform and expanded to serve indie hackers and SaaS founders of all kinds, emphasizing a developer-centric, open-source ethos.

Key Features:

• Supports one-time purchases, recurring subscriptions, memberships, and usage-based billing.

• Entitlements system to grant access to features or content upon purchase.

• Acts as Merchant of Record, handling global sales tax and VAT.

• Strong APIs, webhooks, and developer tooling for custom integrations.

• Open-source components; community-driven.

Pricing:

• Recently lowered to 4% + $0.40 per transaction flat, which includes underlying processing costs.

• No monthly fees; among the lowest-priced full MoR services.

• Additional surcharges may apply in special cases (e.g., international cards).

Strengths:

• Highly developer-focused with usage-based billing and advanced APIs.

• Lower fees than most MoR competitors (often ~20% cheaper).

• Open-source approach fosters transparency and community trust.

• Good for metered billing or advanced subscription logic.

Weaknesses:

• Newer, still growing user base and brand recognition.

• Possibly not as plug-and-play for non-technical founders.

• Relies on Stripe under the hood, so if Stripe doesn’t support a merchant’s country, Polar may face the same limitation.

Use Case:

Ideal for technical founders and developers building SaaS, especially if usage-based billing is required. Great for open-source projects and subscription-based or license-based businesses needing deep customization and lower fees.

5. Paddle

Overview:

Paddle is one of the most established Stripe alternatives for SaaS companies, positioning itself as a higher-level payments platform that acts as Merchant of Record. It has grown into a robust solution, popular among software and SaaS businesses in Europe and North America. Paddle offloads subscription management, taxes, and global billing so startups can focus on product rather than finance operations.

Key Features:

• Comprehensive subscription management (upgrades/downgrades, trials, prorations).

• Handles global VAT/GST automatically.

• Fraud detection and chargeback handling.

• Strong analytics and reporting (including integrated ProfitWell).

• Easy checkout integration without heavy coding.

Pricing:

• 5% + $0.50 per transaction on pay-as-you-go.

• All-in-one approach covers payment processing, tax handling, subscription logic, and more.

• Custom enterprise pricing for high-volume sellers.

Strengths:

• Battle-tested by many successful SaaS companies.

• Seamless subscription features, good analytics, robust support.

• Frees founders from tax and compliance complexities.

• Can scale from early-stage to enterprise level.

Weaknesses:

• Less flexible for highly custom checkout experiences.

• Not available to merchants in every country (onboarding can be slower).

• 5% + $0.50 can feel steep for large transactions unless you negotiate.

• Detailed KYC process before going live.

Use Case:

Excellent for SaaS startups and software companies wanting a proven, hands-off solution for global payments, subscriptions, and compliance. Often chosen by B2B SaaS that need upgrade/downgrade workflows, advanced metrics, and no extra overhead.

6. Gumroad

Overview:

Gumroad is well-known among creators for selling digital products and memberships with minimal friction. It’s not a traditional payment gateway—think of it more like a simple storefront + payment processor hybrid for independent creators. Gumroad also acts as Merchant of Record for its users, handling VAT for EU sales and similar taxes on behalf of sellers.

Key Features:

• Very easy setup for digital downloads, online courses, memberships, or even physical products.

• Hosted product pages, embedded buy buttons, affiliate support, discount codes.

• Delivers files or updates automatically to buyers, plus has a library for customers.

• Pay-what-you-want pricing, pre-orders, and basic subscription functionality.

Pricing:

• Gumroad often charges a flat 10% fee on revenue, plus ~3% in credit card processing.

• No monthly fee on the free tier.

• The overall ~13% cut is convenient but high compared to other platforms.

Strengths:

• Ultra-fast launch with minimal configuration.

• Handles digital fulfillment (file hosting, updates).

• Great for testing MVPs or for creators with simpler needs.

• Recognizable checkout flow that many buyers trust.

Weaknesses:

• Higher effective fees (around 10–13%).

• Limited customization—Gumroad branding is prominent.

• Fewer advanced SaaS features (like robust subscription management).

• Not ideal for large-scale or B2B scenarios.

Use Case:

Perfect for indie creators launching ebooks, courses, small apps, or membership content who want to start selling in minutes. Great as a quick go-to-market solution. Many founders later move off Gumroad once they exceed certain revenue thresholds or need more flexible features.

7. FastSpring

Overview:

FastSpring is a long-standing ecommerce platform tailored for software and SaaS, offering a full Merchant of Record service since 2005. It provides storefronts, global payment acceptance, subscription management, and tax/compliance solutions, all focused on digital goods.

Key Features:

• Pop-up/hosted checkouts or full web stores for software products.

• Subscription billing, license management, and affiliate tools.

• Robust localization (multiple languages, currencies, payment methods).

• Advanced B2B features (invoices, quotes, purchase orders).

Pricing:

• Typically 5.9% + $0.95 or 8.9% flat per transaction (seller’s choice).

• Covers processing, tax handling, and all commerce features.

• Volume discounts or custom enterprise rates available.

Strengths:

• Very mature and reliable (long track record).

• Comprehensive suite for software, including affiliate management and licensing.

• Strong global localization for payments.

• Excellent for multi-currency and EU VAT compliance.

Weaknesses:

• Fees can be higher than newer platforms.

• Interface and integrations can feel more “enterprise/old-school.”

• Onboarding can take time, as they vet new sellers.

• Overkill for simple use cases.

Use Case:

Ideal for established or growth-stage software businesses selling worldwide that want a proven, full-stack commerce solution (payment, storefront, licensing, affiliate marketing) and can justify the higher fees in exchange for reliability and support.

8. 2Checkout (Verifone)

Overview:

2Checkout, now part of Verifone, is another veteran in online payments. Many developers and small businesses use 2Checkout for global reach where Stripe isn’t an option. It can act purely as a gateway or as a Merchant of Record via its 2Monetize solution, especially for digital goods.

Key Features:

• Global payments in 45+ currencies and 30+ languages.

• Built-in subscription billing, localized checkouts, and fraud protection.

• MoR option that handles worldwide sales tax/VAT compliance.

• Affiliate network (formerly Avangate), beneficial for software sellers.

Pricing:

• Several plans: 2Sell (~3.5%), 2Subscribe (~4.5%), 2Monetize (full MoR) around 6% + $0.60.

• No monthly fees; volume discounts may apply.

• Sometimes a rolling reserve is held to protect against chargebacks.

Strengths:

• Very broad international coverage—supports merchants in many countries Stripe doesn’t.

• Full range of payment methods and local currencies.

• Enterprise-grade fraud detection.

• Offers an affiliate network for software distribution.

Weaknesses:

• Dashboard and setup can feel more complex.

• Support responses may be slower; some bureaucracy.

• Reserve withholding can affect cash flow for bootstrapped founders.

• Higher fees than simpler gateways, though it’s inclusive of MoR services.

Use Case:

Suitable for startups needing maximum global reach or located in countries unsupported by Stripe. Also good for software/SaaS using affiliate marketing, or any business that wants an all-in-one solution. The flexibility in plan options makes 2Checkout versatile but potentially more complex to navigate.

Choosing the Right Provider: Recommendations

When deciding on a Stripe alternative, founders should consider:

1. Your Location and Target Markets

   • If Stripe is unavailable or limited in your region, look at Dodo Payments or 2Checkout.

   • For selling widely in Europe, you might appreciate Paddle’s strong VAT expertise or FastSpring’s proven track record.

2. Business Model (SaaS vs. One-Time vs. Content)

   • Pure SaaS with monthly subscriptions? Paddle, Polar, or Dodo excel.

   • One-off digital products or memberships? Lemon Squeezy and Gumroad are great.

   • Desktop software or game devs might prefer FastSpring or 2Checkout for license tools and affiliate networks.

3. Stage and Scale

   • Validating an MVP with no dev help? Gumroad’s simplicity is unbeatable, though fees are high.

   • Once revenue scales, switching to Lemon Squeezy, Polar, or Paddle might save on fees.

   • Established or B2B-focused? Paddle or FastSpring can handle advanced subscription logic, invoicing, and compliance.

4. Technical Resources

   • Non-technical or want zero code? Lemon Squeezy, Gumroad, or FastSpring.

   • Developer-heavy team wanting advanced customization? Polar, Paddle, or 2Checkout’s API.

5. Cost vs. Convenience

   • MoR services typically charge higher fees than Stripe but handle all tax and compliance.

   • Ask if saving dev time (and potential tax headaches) is worth that extra cut.

   • Track fees closely. Switching platforms is possible but can be a hassle for active subscribers.

6. Support & Community

   • Younger platforms (Dodo, Polar) often give personal support to small users.

   • Paddle and FastSpring have robust but more formal support.

   • Gumroad support is minimal; you’re mostly self-serve.

   • If you anticipate complex compliance questions, choose a provider with strong domain expertise.

7. Future Flexibility

   • You can migrate payment platforms later, though it’s non-trivial (especially for subscriptions).

   • Don’t let analysis paralysis stop you from selling. Pick a reliable option and evolve as you grow.

Final Thoughts

Bootstrapped founders have more options than ever for monetizing products globally without building a payment stack from scratch. Stripe is fantastic, but depending on your context, one of these eight alternatives could serve you better—whether by handling global VAT, providing no-code storefronts, or supporting underrepresented regions with local payment methods.

• Lemon Squeezy and Gumroad are superb for quick-launch digital sales.

• Dodo Payments and Cream unlock cross-border opportunities for emerging market founders.

• Polar is the open-source, developer-friendly choice with usage-based billing.

• Paddle and FastSpring bring enterprise-level SaaS infrastructure, but at a higher fee.

• 2Checkout remains a go-to for broadest international coverage and affiliate sales.

Map your specific needs—location, subscription complexity, tax compliance, developer resources, cost sensitivity—to these platforms. You’ll likely find a solution that frees you to focus on building a great product instead of wrestling with payments. The key is to start collecting revenue early and refine your billing solution over time as your startup grows.

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