Paddle was one of the first platforms to solve global tax compliance for software sellers through a merchant-of-record (MoR) model. For enterprise companies selling B2B software at high price points, Paddle's approach makes sense — the convenience of offloading tax compliance justifies the cost and ownership trade-offs. But for indie hackers, solo developers, and small teams? Paddle's model has serious downsides. The 5%+ fees eat into margins on lower-priced products. The MoR structure means you don't own customer payment relationships. And here's the part that really hurts small European sellers: as MoR, Paddle collects 20% VAT on all EU/UK sales — regardless of whether you're VAT-registered. For a small UK developer under the £90,000 threshold, that's 20% added to every sale that you'd never charge with direct payments. Revnu is built for indie developers and small teams. You connect your own Stripe account (keeping full ownership), pay transparent fees, handle taxes based on your actual business situation, and get software-specific features without enterprise complexity. We believe small software sellers shouldn't be forced into enterprise tax regimes before they need them. This comparison breaks down what matters for indie developers choosing between these approaches.
TOTAL COST OF OWNERSHIP
Platform fees are just the beginning. Paddle sellers need 4-6 additional services to match what Revnu includes out of the box.
| Capability | Revnu | Paddle + Tools |
|---|---|---|
| Affiliate System | Built-in | $50-99/mo(Rewardful) |
| License Keys | Built-in | $50-200/mo(Keygen) |
| Auth SDK | RevnuAuth | $23-99/mo(Auth0) |
| A/B Testing | Grow+ | $49-199/mo(Optimizely) |
| Monthly add-on costs | $0 | $172-597 |
YOUR ANNUAL SAVINGS WITH REVNU
$4,500-9,500
That's the real difference. Not just platform fees — total cost of ownership. Everything you need, all in one place.
REVNU
Revnu is built for indie hackers, solo developers, and small teams. Plans start at £1/month for the first 3 months, with platform fees ranging from 2-6% depending on your plan. The pricing scales reasonably — you're not penalized for success. Everything is self-service, documentation-first, and designed for developers who want to move fast without talking to sales.
PADDLE
Paddle has evolved into an enterprise-focused platform. While they serve indie developers, pricing starts at 5% + 50¢ per transaction with additional fees for some features. The platform increasingly emphasizes sales-assisted onboarding, enterprise contracts, and B2B workflows. For a solo developer selling a $29 tool, Paddle's structure adds friction and cost that doesn't match the use case.
VERDICT
Paddle optimizes for enterprise SaaS. Revnu optimizes for indie developers. Choose the platform built for your stage.
REVNU
Revnu uses Stripe Connect — you connect your own Stripe account and own every customer relationship. Payment data, transaction history, and customer payment methods all live in your Stripe account. You can access Stripe's full API, use their analytics, and export everything. If you outgrow Revnu, your Stripe account comes with you. Zero lock-in.
PADDLE
Paddle operates as merchant of record. They process payments, handle taxes, and pay you your share. This means Paddle owns the customer payment relationship — they appear on credit card statements, they control the data. If you want to migrate, you'll need to re-collect payment information from all your customers. For subscription businesses, this is a massive migration headache.
VERDICT
With Revnu, you own your business data. With Paddle, they own it. This matters more than most people realize until migration time.
REVNU
Revnu's pricing is straightforward: Stripe processing fees (2.9% + 30¢) plus platform fee (2-6% depending on plan). Plans start at £1/month for 3 months. No surprise fees, no forced VAT collection, no revenue thresholds that change your rate. You handle taxes based on your actual business situation. You can calculate exactly what you'll pay before you sign up.
PADDLE
Paddle charges 5% + 50¢ per transaction on their standard plan. Additional fees apply for certain payment methods and features. But the real cost for European sellers is VAT: as MoR, Paddle collects 20% VAT on all EU/UK sales regardless of your registration status. For a UK indie developer under VAT thresholds, that's 20% added to every UK sale. Total effective rate for EU/UK transactions can exceed 25-28% when you add platform fees + VAT + currency conversion.
VERDICT
Paddle's true cost is often far higher than the headline rate — especially for European small sellers hit by forced VAT collection.
REVNU
Revnu is purpose-built for software: native license key generation with device activation limits, RevnuAuth SDK for protecting web app routes, full subscription management with self-service portals. Everything integrates seamlessly because it's designed as a unified system for software sellers, not a general commerce platform.
PADDLE
Paddle offers software license key delivery and checkout experiences optimized for software. However, as the platform has moved upmarket, features increasingly target enterprise B2B scenarios: quote generation, sales-assisted deals, complex tax scenarios. Indie-focused features like auth SDKs and conversion optimization tools are less developed.
VERDICT
Both handle software sales. Revnu focuses on indie developer needs; Paddle focuses on enterprise requirements.
REVNU
Built-in affiliate system, session replays (Basic+), A/B testing (Grow+), and detailed analytics with UTM tracking. Everything's included without additional subscriptions. You can optimize your checkout, track referrals, and understand customer behavior — all in one place.
PADDLE
Paddle provides revenue analytics and basic reporting. Affiliate features require additional setup or third-party tools. No session replay or built-in A/B testing. For growth optimization, you'd need Hotjar, Optimizely, or similar tools, adding cost and integration complexity.
VERDICT
Revnu includes growth tools that cost extra with Paddle: affiliates, session replays, A/B testing — all built in.
MIGRATION
Sign up, connect Stripe, and configure your first product. About 10 minutes to get started.
Recreate products with Revnu's enhanced features — license keys, subscription tiers, custom storefronts.
Because Paddle is MoR, you'll need to re-collect payment info from subscribers. Run platforms in parallel during transition.
Sign up, connect Stripe, and configure your first product. About 10 minutes to get started.
Recreate products with Revnu's enhanced features — license keys, subscription tiers, custom storefronts.
Because Paddle is MoR, you'll need to re-collect payment info from subscribers. Run platforms in parallel during transition.
FAQ
For most indie developers, significantly so — especially Europeans. Paddle charges 5%+ per transaction, and as MoR they collect 20% VAT on all EU/UK sales regardless of your VAT status. For a UK seller under VAT thresholds, that 20% is money you'd never charge with direct payments. Revnu uses Stripe's standard rates plus a 2-6% platform fee, with you handling taxes based on your actual obligations.
Revnu integrates with Stripe Tax for automatic VAT/sales tax calculation in 40+ countries. You get compliance without the merchant-of-record trade-offs. Crucially: you handle taxes based on your actual business situation. Paddle forces VAT collection on everyone — including small sellers who don't legally need to charge it.
Yes. As merchant of record, Paddle is legally required to collect VAT on EU/UK transactions regardless of whether you're VAT-registered. For UK sales, that's 20%. This is the hidden cost of MoR 'convenience' that benefits platforms processing at scale but hurts small indie developers who don't need enterprise tax compliance yet.
Paddle makes sense for: enterprise B2B software with complex tax requirements, companies with dedicated finance teams who want zero tax responsibility, and high-volume businesses that can negotiate enterprise rates. For indie developers and small teams, Revnu's model is typically better.
Product setup on Revnu takes 1-2 hours. The challenge is re-collecting payment information from existing subscribers since Paddle is the merchant of record. Consider running both platforms in parallel and migrating gradually.
Through Stripe, you can handle invoicing and B2B scenarios. It's not as specialized as Paddle's enterprise features, but it covers most indie developer needs. If you need quote-to-cash workflows and sales-assisted deals, Paddle may be better suited.
Revnu excels at desktop software: native license key generation with device activation limits, automatic delivery on purchase, and simple validation APIs. Paddle also handles desktop software but with more enterprise-oriented workflows.
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