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  2. Stripe vs Lemon Squeezy vs Paddle for selling digital products

Stripe vs Lemon Squeezy vs Paddle for selling digital products

Stripe is cheaper per sale, but you handle UK and EU VAT yourself. Lemon Squeezy and Paddle cost more per sale because they act as the seller and deal with VAT for you. UK and EU VAT rules need proper tax advice; our figures aren't that.

Priced from vendor pages
Prices checked
16 Oct 2026
Exchange rate
1 USD = £0.7489
Sources
5
How we check

The answer

On £1,000 of sales a month, Stripe's fees are about £44 lower. That gap is roughly what you pay not to handle VAT yourself.

Which payment option costs less for a UK creator selling downloads or courses?

Stripe Checkout (UK)

1.5% + 20p per standard UK card

  • Lowest fees if you're happy to register for and file VAT yourself.

You're the seller, so VAT is yours: get tax advice before you sell. Stripe Tax adds 40p a sale (Basic, via payment APIs) or £70/mo (Complete, 1-year contract).

Fixed monthly fee None50 sales × £20 (£1,000) a month, example £25.00

Lemon Squeezy

5% + 50¢ (about £0.37, rounded) per sale

  • Handles VAT as merchant of record, with signed downloads and licence keys built in.

Extra fees can apply outside the US or for some payment methods; the amount isn't published.

Fixed monthly fee None50 sales × £20 (£1,000) a month, example £68.72

Paddle

5% + 50¢ (about £0.37, rounded) per Checkout sale

  • Handles tax as merchant of record, aimed at software sellers.

Items under $10 get custom pricing. We couldn't confirm it accepts courses or non-software downloads.

Fixed monthly fee None50 sales × £20 (£1,000) a month, example £68.72
Fixed monthly feeNone
Fixed monthly feeNone
Fixed monthly feeNone
50 sales × £20 (£1,000) a month, example£25.00
50 sales × £20 (£1,000) a month, example£68.72
50 sales × £20 (£1,000) a month, example£68.72

Monthly cost in pounds, from each vendor's pricing page. Lowest figures compared VAT handling not included.

How we worked it out

  • Stripe: 1.5% × £1,000 = £15.00, plus 50 × 20p = £10.00, total £25.00.
  • Lemon Squeezy and Paddle: 5% × £1,000 = £50.00, plus 50 × 50¢ = $25 × 0.7489 = £18.72 (18.7225), total £68.72.
  • Assumes every sale is on a standard UK card, so £25.00 is the lowest case. Other cards (Stripe UK pricing, https://stripe.com/gb/pricing, checked 23 Oct 2026): premium UK cards 2.8% + 20p; EEA cards 2.5% + 20p; international cards 3.15% + 20p, plus 2% if currency conversion is required. All-EEA: 2.5% × £1,000 = £25.00 + £10.00 = £35.00. All-international: 3.15% × £1,000 = £31.50 + £10.00 = £41.50; with currency conversion add 2% × £1,000 = £20.00, total £61.50.

Sources