4 Best Payment Services for Developers Compared (2026)

Payment services compared — with real fees, hidden costs, and known gotchas. Each entry includes integration code and tax handling details.

How we evaluate

Every payment service is assessed on: fee transparency, tax handling (who handles sales tax/VAT?), payout speed, integration complexity, and merchant of record status.

Quick recommendation:

  • Best overall: Stripe — most flexible, best docs, but you handle taxes
  • Best for SaaS/digital: Lemon Squeezy — merchant of record handles taxes for you
  • Best for SaaS subscriptions: Paddle — merchant of record, strong in EU
  • Best for mobile apps: RevenueCat — handles App Store/Play Store billing

Quick Decision Matrix

I need… Use this Starting price Watch out for
Maximum flexibility + control Stripe 2.9% + $0.30 per txn You handle tax collection/remittance
SaaS with no tax headaches Lemon Squeezy 5% + $0.50 per txn Higher fees than Stripe
EU SaaS with VAT handling Paddle 5% + $0.50 per txn Slower payouts; they own the customer relationship
Mobile app subscriptions RevenueCat Free up to $2.5K MTR App Store/Play Store fees still apply (15-30%)

Free Tier Comparison

Service Free Tier Catches Permanent?
Stripe No monthly fee, pay per transaction 2.9% + $0.30 per transaction Yes
Lemon Squeezy No monthly fee, pay per transaction 5% + $0.50 per transaction (higher cut) Yes
Paddle No monthly fee, pay per transaction 5% + $0.50 per transaction Yes
RevenueCat Free up to $2,500 MTR $12/month after free tier Yes

Quick Start Code (Node.js)

Stripe

npm install stripe

import Stripe from 'stripe';
const stripe = new Stripe(process.env.STRIPE_SECRET_KEY);

const session = await stripe.checkout.sessions.create({
  line_items: [{ price: 'price_xxx', quantity: 1 }],
  mode: 'subscription',
  success_url: 'https://yourapp.com/success',
  cancel_url: 'https://yourapp.com/cancel',
});
// Redirect user to session.url

Lemon Squeezy

npm install @lemonsqueezy/lemonsqueezy.js

import { lemonSqueezySetup, createCheckout } from '@lemonsqueezy/lemonsqueezy.js';

lemonSqueezySetup({ apiKey: process.env.LEMON_SQUEEZY_API_KEY });

const { data } = await createCheckout(storeId, variantId, {
  checkoutData: { email: '[email protected]' },
});
// Redirect user to data.data.attributes.url

Full integration guides on each service page.

Frequently Asked Questions

Stripe vs Lemon Squeezy — which should I choose?

Choose Stripe if you want maximum flexibility, the best API/docs, and can handle tax collection yourself (or use Stripe Tax). Choose Lemon Squeezy if you’re selling digital products/SaaS and want a merchant of record that handles all sales tax, VAT, and compliance for you — but pay a higher fee (5% vs 2.9%).

What is a merchant of record and why does it matter?

A merchant of record (MoR) is the legal entity that sells to the customer. Stripe: YOU are the MoR — you handle taxes, refunds, disputes. Lemon Squeezy/Paddle: THEY are the MoR — they handle taxes and compliance, but they own the customer relationship and take a higher fee.

Which payment service handles sales tax automatically?

Lemon Squeezy and Paddle handle all sales tax and VAT automatically as merchants of record. Stripe requires you to enable Stripe Tax ($0.50 per transaction) or use a third-party tax service. RevenueCat relies on App Store/Play Store for tax handling.

All payment services

Lemon Squeezy

Choose if: You're selling digital products or SaaS subscriptions and want someone else to handle all tax collection and compliance.

Merchant of record for digital products and SaaS. Handles all sales tax, VAT, and compliance — but takes a 5% cut.

SOC 2PCI DSS
HIGH Higher fees than Stripe

Paddle

Choose if: You're building a SaaS with EU customers and want a merchant of record that handles VAT and compliance.

Merchant of record for SaaS. Handles tax, compliance, and billing globally — strong in EU market but slower payouts.

SOC 2PCI DSSGDPR
HIGH They own the customer relationship

RevenueCat

Choose if: You're building a mobile app (iOS/Android) with subscriptions and need to handle App Store and Play Store billing.

In-app subscription management for mobile apps. Handles Apple App Store and Google Play billing complexity — free up to $2,500 MTR.

SOC 2
HIGH Store fees still apply

Stripe

Choose if: You want maximum payment flexibility with the best API, docs, and ecosystem in the industry.

The most popular payment API. Maximum flexibility, best documentation, global coverage — but you're responsible for tax collection and compliance.

SOC 2PCI DSS Level 1GDPR
HIGH You handle tax compliance