--- title: "Paddle vs Razorpay: Which is Better in 2026? | App Stack Builder" description: "Paddle vs Razorpay compared for 2026: pricing, free tiers, features, pros & cons. See which payment gateway tool is the better fit for your startup." source: https://appstackbuilder.com/compare/paddle-vs-razorpay retrieved: 2026-11-06 --- ![](https://appstackbuilder.com/paddle.svg) vs ![](https://www.google.com/s2/favicons?domain=razorpay.com&sz=128) # Paddle vs Razorpay: Which is Better in 2026? Payment Gateway Choosing between [Paddle](https://appstackbuilder.com/tools/paddle) and [Razorpay](https://appstackbuilder.com/tools/razorpay)? Both are popular payment gateway tools. Below we compare them on pricing, free tiers, features, and pros & cons so you can pick the right fit for your stack. Paddle is for: SaaS and software companies who want a merchant of record to handle sales tax, VAT, fraud and buyer support. Razorpay is for: Businesses selling to customers in India who need UPI, cards, netbanking, wallets and EMI in one gateway. Quick verdict There’s no single winner; pick on your constraint. Choose Paddle if you sell software globally and don’t want to register for VAT and sales tax. Choose Razorpay if your customers mostly pay in India. ## Paddle vs Razorpay: Side by Side | | Paddle | Razorpay | | ------------------ | ----------------------------------------------------- | -------------------------------------------- | | Category | Payment Gateway | Payment Gateway | | What it is | Payments and billing platform | Payment gateway | | Merchant of record | Yes | No | | Online card fee | 5% + 50¢, tax handling included | 2% platform fee (India) + 18% GST | | Monthly fee | None | None | | Built for | SaaS and software | Businesses selling in India | | Pricing | Usage-based | Usage-based | | Starting price | Pay-as-you-go | Pay-as-you-go | | Free tier | — | — | | Best for | Payment Gateway: merchant of record, SaaS, global tax | Payment Gateway: India, UPI, payment gateway | ## Pros & Cons ![](https://appstackbuilder.com/paddle.svg) [Paddle](https://appstackbuilder.com/tools/paddle) * ✓Merchant of record: collects and files sales tax for you * ✓Fraud, chargebacks and buyer support included * ✓No monthly or migration fees * ✗5% + 50¢ costs more per sale than a plain gateway * ✗Products under $10 need custom pricing * ✗Custom rates only through sales ![](https://www.google.com/s2/favicons?domain=razorpay.com&sz=128) [Razorpay](https://appstackbuilder.com/tools/razorpay) * ✓Built for UPI and Indian payment methods * ✓No monthly fee * ✓Rich payment methods * ✓Good developer docs * ✗Gateway, not merchant of record * ✗India-focused * ✗You handle tax compliance ## Key Features Compared ### Paddle * ✓Pay-as-you-go: 5% + 50¢ per checkout transaction * ✓Merchant of record: collects the right tax rate and files sales tax returns for you * ✓Payments, checkout, subscriptions and billing in one platform; fraud, chargebacks and buyer support included * ✓No monthly, migration or hidden fees; no lock-in period * ✓Custom pricing for high volume; contact Paddle for products under $10 ### Razorpay * ✓Standard: 2% platform fee across domestic methods, including UPI, RuPay, cards, netbanking and wallets * ✓Corporate cards 2.15%; international cards up to 3%; international bank transfers 1% * ✓GST of 18% applies to the platform fee * ✓No setup fee, annual maintenance charge or refund fee ### Choose Paddle if… * ✓You sell software globally and don’t want to register for VAT and sales tax. * ✓You want chargebacks and buyer support handled for you. * ✓You want subscriptions and checkout from the same vendor. [Paddle review & pricing ](https://appstackbuilder.com/tools/paddle) ### Choose Razorpay if… * ✓Your customers mostly pay in India. * ✓You need UPI, netbanking and EMI as well as cards. * ✓You want one flat platform fee across domestic methods. [Razorpay review & pricing ](https://appstackbuilder.com/tools/razorpay) ## Frequently Asked Questions Is Paddle better than Razorpay?⌄ There’s no single winner; pick on your constraint. Choose Paddle if you sell software globally and don’t want to register for VAT and sales tax. Choose Razorpay if your customers mostly pay in India. What is the difference between Paddle and Razorpay?⌄ What it is. Paddle: Payments and billing platform. Razorpay: Payment gateway. Merchant of record. Paddle: Yes. Razorpay: No. Online card fee. Paddle: 5% + 50¢, tax handling included. Razorpay: 2% platform fee (India) + 18% GST. Built for. Paddle: SaaS and software. Razorpay: Businesses selling in India. Paddle vs Razorpay: which is cheaper?⌄ Paddle pricing: Usage-based. Razorpay pricing: Usage-based. Confirm current pricing on each tool's official site, as plans change. When should I skip both Paddle and Razorpay?⌄ Skip Paddle if you want a lower per-transaction rate as a merchant of record. Polar’s paid plans start at 3.8% + 40¢. Skip Razorpay if you sell mostly outside India. Stripe and Paddle are built for global card payments. Sources · tool facts checked November 2026 1. 1.[Paddle pricingpaddle.com ](https://www.paddle.com/pricing) 2. 2.[Razorpay pricingrazorpay.com ](https://razorpay.com/pricing/) See more options in our guide to the [best payment gateway tools for startups](https://appstackbuilder.com/categories/payments). ## Still not sure which to pick? Get a free, AI-powered tech stack, including the best payment gateway pick for your budget and team, in 60 seconds. [Build my stack free ](https://appstackbuilder.com/build-stack)