Best Payment Platforms for Online Businesses in 2026
Payment platforms split by how much tax/compliance responsibility they take on. Stripe is developer-first infrastructure where you remain the merchant of record. Paddle and Lemon Squeezy are merchant-of-record platforms that handle global sales tax and VAT for you, trading some fees for less compliance overhead. Plaid and Recharge round out the category for bank connectivity and subscription billing respectively.
FAQ
- What does 'merchant of record' mean?
- A merchant-of-record platform like Paddle or Lemon Squeezy legally sells on your behalf and handles global sales tax/VAT compliance for you, unlike Stripe's default setup.
- Is Stripe or Paddle better for a new SaaS?
- Stripe gives more flexibility and lower fees but leaves tax compliance to you; Paddle and Lemon Squeezy trade some fees for handling that compliance automatically.
- What is Plaid used for?
- Plaid connects apps to users' bank accounts, commonly used for fintech features like verifying bank details or pulling transaction data.