Paddle Billing

How Paddle works

Paddle is a billing and recurring revenue management solution designed for modern SaaS businesses. It helps you increase your revenue, retain customers, and scale your operations.

  1. Create your product catalog

    Your product catalog includes everything that you sell to your customers. This includes subscription plans, recurring addons, one-time charges, and things like additional seats.

    No rigid hierarchy

    No need to spend time thinking about whether an item is an addon, accessory, bundle, plan, or seat — in Paddle everything is a product.

    Modular prices

    Products have related prices that describe how you charge, letting you easily create products with multiple billing periods and currencies.

    Handles all kinds of pricing

    Build flat, good-better-best, per-user, and feature based pricing easily. Bill for one-time charges and offer recurring addons, too.

  2. Drop in a checkout

    Start selling in minutes. Use Paddle.js to drop an overlay checkout into your app with a few lines of code, or fully integrate Paddle with your app using inline checkout.

    Optimized for conversion

    Short purchase journey and intelligent routing to the best acquirer for payment success.

    Fully brand and customize

    Add your brand colors and choose your theme, or seamlessly integrate into your app.

    Get started in minutes

    Include Paddle.js and launch an overlay checkout with just a few lines of code.

  3. Handle all parts of the subscription lifecycle

    Let Paddle automatically create a subscription for you when a checkout completes. As a total subscription management solution, Paddle handles renewals, upgrades and downgrades, pauses and cancellations, and other subscription lifecycle events.

    Keep your app in sync

    Comprehensive webhooks for all parts of the subscription lifecycle keep your app in sync with Paddle, or poll the event stream.

    Prorate when making changes

    Paddle calculates proration to-the-minute when making changes to a subscription. Preview charges before choosing to apply now or later.

    Stay compliant

    Paddle handles sending emails for subscription lifecycle events where legally required, so you're covered.

  4. Transition to billing by invoice

    Conquer upmarket and downmarket — all from the same integrated platform. Create invoices for subscriptions, or transition customers who pay for renewals automatically using a saved payment method to payment by invoice, offering enterprise plans to customers who have scaled with you.

    Fully integrated

    Create invoices and accept payment by wire transfer, using the same product catalog and customers that you use for Paddle Checkout.

    Accept wire transfers

    No need to create local bank accounts. Accept wire transfers and offline payments, as well as card, PayPal, and other payment methods.

    Handle subscription changes

    Paddle automatically creates invoices for subscription changes, like renewals or plan changes. No need to manually make changes or create invoices.

  5. Win new markets

    Take your price localization strategy to the next level with country-specific pricing, automatic currency conversion, localized checkout, and local payment methods that you can enable in a couple of clicks. Increase conversion rates, maximize revenue in markets where willingness-to-pay is higher, and grow your sales by pricing according to purchasing power in emerging markets.

    Sell in over 200 countries

    Expand into popular markets, while protecting your company from sanctioned countries.

    Boost conversion rates

    Offering local currencies and payment methods can increase sales and reduce FX fees for your customers.

    No extra engineering effort

    All supported countries, currencies, and payment methods are ready-to-use as part of the Paddle API and Paddle.js.

  6. Effortlessly reduce churn

    Paddle Billing is integrated with Retain, which uses algorithms built on data collected from hundreds of thousands of payments to systematically reduce churn from payment failure. Retain intelligently retries payments at the best time for success, and sends tried and tested notifications to help you recover revenue.

    Frictionless retries

    Prompt customers for payment on your commercial website, letting them pay for overdue subscriptions in one-click with Apple Pay or Google Pay.

    Intelligent retries

    Retain automatically retries payments at the best time for success based on the date, failure code, payment method, bank, customer location, and other factors.

    Easy to integrate

    Add Retain to your website or app when you're building a checkout and integrating Paddle. There's no need to call a separate library or build a separate integration.

  7. We do it for you

    Paddle provides more than just the infrastructure for subscription billing. As a merchant of record, we do it for you.

    Fully tax compliant

    Paddle calculates, collects, and remits taxes for you across the world. We handle sales tax liability for all payments, so you're totally protected.

    Fraud protection

    As merchant of record for every transaction, Paddle prevents card attacks, fights illegitimate chargebacks, and screens fraudsters.

    Payment routing

    With a high volume of successful payments for thousands of SaaS companies, we're more trusted by global acquirers than you would be as a solo merchant.