Making the work
Growing an audience
Running the business
Both cover monetization & payments and digital products & storefronts. Here is what separates them on price, billing, what you can take with you, and coverage.
Paddle | Shopify | |
|---|---|---|
| Starting price | Free | From $29 |
| Pricing model (they differ) | Free | Paid subscription |
| Free tier (they differ) | Yes | No |
| Billing (they differ) | Usage-based | Monthly or annual |
| Free trial | Not stated | Not stated |
| API | Yes | Yes |
| Data export | Not stated | Not stated |
| Their cut | Not stated | Not stated |
| Runs on (they differ) | Web | Web, iOS, Android |
Shaded rows are where the two answers disagree and both listings have answered. A row where one side has not stated a fact is left plain, because silence is not a difference.
Merchant of record for digital products
Paddle acts as the merchant of record, meaning it sells your product to the customer and then pays you, taking sales tax registration and remittance off your desk entirely. That is the whole difference between it and a plain card processor, and it is why software sellers outside the United States end up here. One rate covers payments, billing and tax. Products under ten dollars are quoted separately.
Our note
The extra two points over Stripe buys you out of tax registration, which is worth it the moment you sell across borders. Lemon Squeezy is the same company at the same headline rate with a lighter setup, so pick that one unless you need Paddle's billing depth.
A storefront whose card rate falls by plan
Shopify runs the shop itself, the checkout and the card processing, which is why its pricing has two numbers rather than one: a monthly plan and a card rate that drops as the plan rises. Selling on social, in person and through a site all report into the same catalogue and stock count. The plans are otherwise similar enough that most people choose on the card rate and the staff seats. Using a payment provider other than Shopify's own adds a transaction fee on top, so the cheap plan is not always the cheap option.
Ratings are the average of reviews readers left. The facts are stated by each tool’s own listing and are not verified by CloutStack. How we make money.
| Covers | Monetization & Payments, Digital Products & Storefronts | Monetization & Payments, Digital Products & Storefronts |
|---|
| Works with | Nothing in particular | Nothing in particular |
|---|
| Founded | Not listed | Not listed |
|---|
| Reader rating | No reviews yet | No reviews yet |
|---|
| Live deals | None right now | None right now |
|---|
Our note
Work out the crossover between plans on your own card volume before choosing, because 0.2 percent of a busy month covers the difference between two tiers and most people pick on features instead. If a third-party gateway is a requirement rather than a preference, price that transaction fee in first, since it can cost more than the plan itself.