Lemon Squeezy is a Merchant of Record built for selling digital products, software licences and SaaS subscriptions. Like Paddle, it bundles payments with global tax handling, so its fee is higher than a plain processor but you skip the VAT paperwork. Here's the cost and how to start.
| Item | Fee | Notes |
|---|---|---|
| Per transaction no monthly fee | ~5% + 50¢ | Processing + tax/VAT as Merchant of Record |
| International / currency | small added % | Cross-border and FX surcharge |
| PayPal payments | slightly higher | Extra over card rate |
| Payout | via Wise/PayPal | Standard payout schedule |
As Merchant of Record, Lemon Squeezy is the legal seller: it handles VAT/GST/sales-tax in every region, fraud, chargebacks and dunning, and gives you hosted checkout, license-key delivery and subscription management out of the box. For a solo founder or small team selling worldwide, that removes the single most annoying part of going global. See the trade-off in numbers on the payment fee calculator.
1. Sign up at lemonsqueezy.com and set up your store.
2. Add a product (digital download, license or subscription).
3. Go to Settings → API and create an API key (keep it server-side).
4. Grab your webhook signing secret so you can verify events like new orders and subscription changes.
List your products:
Paddle (see our Paddle guide) is the main rival — another Merchant of Record at a similar ~5% + 50¢, often chosen by larger SaaS. Stripe (see Stripe guide) is cheaper per transaction (~2.9% + 30¢) but you stay the merchant for tax. Compare them side by side on the payment fee calculator.
Roughly 5% + 50¢ per transaction, no monthly fee. The rate bundles processing with global tax/VAT handling for digital products and SaaS.
Set up your store, then Settings → API → create an API key. Use it server-side and verify webhooks with your signing secret.
Both are Merchants of Record at a similar ~5% + 50¢. Lemon Squeezy is loved by indie makers for its simple setup and license-key tooling; Paddle is common with larger SaaS. For raw fee at scale, plain Stripe is cheaper but leaves tax to you.
Not affiliated with Lemon Squeezy. Prices are reference estimates — always verify on the official pricing page.