What will I learn from this tool-comparisons tutorial?

Comparing Paddle and Lemon Squeezy for solo developers. Features, pricing, pros and cons, and which one to pick for your next project. This comprehensive guide covers all the essential concepts and practical steps you need to master tool-comparisons.

Is this tool-comparisons tutorial suitable for beginners?

This tutorial is designed to be accessible for learners at various skill levels. We provide clear explanations and step-by-step instructions to help you understand tool-comparisons concepts effectively.

How long does it take to complete this tool-comparisons tutorial?

This tutorial has an estimated reading time of 5 minutes. However, we recommend taking additional time to practice the concepts and techniques covered to fully master the material.

Where can I find more tool-comparisons tutorials and resources?

You can find more tool-comparisons tutorials in our tool-comparisons category section. We also recommend exploring our related articles and following our blog for the latest updates on tool-comparisons techniques and best practices.

/ tool-comparisons / Paddle vs Lemon Squeezy for Solo Developers

tool-comparisons • February 17, 2026 • 5 min read

Paddle vs Lemon Squeezy for Solo Developers

Comparing Paddle and Lemon Squeezy for solo developers. Features, pricing, pros and cons, and which one to pick for your next project.

Quick Comparison

Feature	Paddle	Lemon Squeezy
Type	Merchant of Record for SaaS	Merchant of Record for indie products
Pricing	5% + $0.50 per transaction	5% + $0.50 per transaction
Learning Curve	Moderate	Easy
Best For	Established SaaS with global sales	Indie hackers selling digital products
Solo Dev Rating	9/10	9/10

Paddle Overview

Paddle is the established Merchant of Record platform built for SaaS businesses. They handle global tax compliance, invoicing, and payment processing so you can sell subscriptions worldwide without worrying about VAT, GST, or US state sales tax.

Paddle's platform is mature and battle-tested. They process payments for thousands of software companies and have built robust systems for subscription management, revenue recovery (dunning), and analytics. The Paddle Billing API (their newer product) offers a modern developer experience with webhooks, SDKs, and a clean dashboard.

The approval process is the main friction point. Paddle reviews every new account before activation. They want to ensure you're selling legitimate software products. This review can take a few days, which means you can't go from zero to accepting payments in an afternoon like you can with Stripe or Lemon Squeezy.

Lemon Squeezy Overview

Lemon Squeezy was built specifically for indie hackers and solo developers. The entire experience is designed around the solo founder use case: selling digital products, SaaS subscriptions, and software licenses with minimal setup.

Getting started takes minutes. Create an account, add a product, configure pricing, and embed a checkout button on your site. Lemon Squeezy handles tax compliance globally, generates invoices, and manages subscriptions. The checkout pages look great out of the box and are customizable.

What I appreciate about Lemon Squeezy is the built-in license key system. If you're selling desktop software, plugins, or any product that needs license validation, it's included. No third-party license server, no custom implementation. Create a product, enable license keys, and your customers get them automatically on purchase.

Key Differences

Target audience. Paddle targets SaaS businesses of all sizes, from startups to enterprises. Their feature set reflects this: advanced dunning, revenue recognition, and multi-currency support. Lemon Squeezy targets indie hackers and solo developers. Their features focus on simplicity: quick setup, beautiful checkouts, and license key management. Both can serve solo developers, but Lemon Squeezy feels more purpose-built for the one-person business.

Onboarding experience. Lemon Squeezy lets you set up an account and start selling immediately. Paddle requires an approval process that can take days. For a solo developer who wants to start accepting payments today, Lemon Squeezy's instant access is a significant advantage.

License key management. Lemon Squeezy includes built-in license key generation and validation. You can create products that issue license keys on purchase, set activation limits, and validate keys through their API. Paddle doesn't offer built-in license management. If you're selling software that needs license keys, Lemon Squeezy saves you from building or integrating a separate system.

Checkout experience. Lemon Squeezy's checkout pages are polished and look native to modern indie products. They support overlays and hosted pages with customizable colors and branding. Paddle's checkout has improved with Paddle Billing, offering inline and overlay options. Both are good, but Lemon Squeezy's checkout tends to look better for small products.

API maturity. Paddle's API is more mature and comprehensive. It handles complex scenarios like prorations, mid-cycle upgrades, quantity-based pricing, and revenue recognition. Lemon Squeezy's API covers the basics well but has fewer options for complex billing scenarios. If your pricing model is simple, this doesn't matter. If it's complex, Paddle handles more edge cases.

Dunning and revenue recovery. Paddle has sophisticated retry logic and dunning flows for failed subscription payments. They'll automatically retry charges, send payment update reminders, and manage the recovery process. Lemon Squeezy handles basic retry logic but the dunning system is less configurable. For subscription businesses where churn reduction matters, Paddle's revenue recovery is more advanced.

Analytics and reporting. Paddle provides detailed revenue analytics, MRR tracking, churn analysis, and tax reports. Lemon Squeezy offers a clean analytics dashboard with revenue tracking and basic metrics. Paddle's reporting is more comprehensive for making business decisions.

When to Choose Paddle

You're building a SaaS with complex subscription billing
Revenue recovery and dunning optimization matter for reducing churn
You need detailed analytics and MRR reporting
You're selling to businesses and need proper invoicing
Your pricing model includes prorations, quantity billing, or usage-based components

When to Choose Lemon Squeezy

You want to start selling immediately without an approval process
You're selling digital products, courses, or software with license keys
Simple setup and beautiful checkout pages are priorities
Your billing model is straightforward (subscriptions or one-time purchases)
You identify as an indie hacker and want a platform built for your workflow

The Verdict

The pricing is identical (5% + $0.50), so this decision comes down to your product type and complexity needs. Both are Merchants of Record that handle global tax compliance. Both eliminate the tax headache that Stripe puts on your shoulders.

Lemon Squeezy is the better choice for solo developers selling digital products, indie SaaS, or anything that needs license keys. The instant onboarding, clean checkout, and built-in license system make it purpose-built for the solo founder workflow.

Paddle is the better choice for SaaS businesses with complex billing needs, higher revenue, and the need for advanced dunning and analytics. If you're optimizing for churn reduction and revenue recovery, Paddle's maturity matters.

My recommendation: start with Lemon Squeezy. It gets you to market faster, the checkout looks great, and the simplicity lets you focus on building instead of configuring payment infrastructure. If your SaaS grows to the point where you need advanced dunning, analytics, or complex billing, migrate to Paddle. That migration is a good problem to have.