# Best Payment Processors for SaaS (2026)
Best Payment Processors for SaaS (2026)
Subscription billing, global payments, and tax compliance can make or break SaaS margins. Here’s how Stripe, Paddle, and Braintree compare in 2026.
Quick Picks
- Best for developers + APIs: Stripe
- Best all-in-one merchant of record (VAT handled): Paddle
- Best if you already use PayPal ecosystem: Braintree
Pricing Snapshot (2026)
| Processor | Fees | Notes |
|---|---|---|
| Stripe | ~2.9% + $0.30/txn | Rich APIs, Radar fraud, Billing for subscriptions |
| Paddle | 5–7% fee as MoR | Handles VAT/GST, invoicing, compliance |
| Braintree | ~2.9% + $0.30/txn | Native PayPal/Venmo, marketplace support |
What to Look For
- Subscriptions, trials, proration, and dunning workflows.
- Global tax handling (MoR vs merchant of record DIY).
- Payment methods: cards, wallets, ACH, local methods.
- Fraud tools, chargeback handling, and dispute automation.
- Reporting, revenue recognition, and finance exports.
Processor Notes
Stripe
- Excellent APIs and docs; Stripe Billing for SaaS plans.
- Supports usage-based pricing, invoices, customer portal.
- DIY on VAT unless pairing with Stripe Tax.
Paddle
- Merchant of record: handles VAT/GST, invoicing, compliance.
- Great for lean teams; less control over some billing edge cases.
- Flat percentage fee instead of per-transaction.
Braintree
- Strong if you want PayPal/Venmo and marketplace payouts.
- Good vaulting and risk tools; solid for mobile.
- Requires more setup for SaaS billing vs Stripe Billing.
Setup Checklist (45 Minutes)
- Define plans, trials, add-ons, and invoice needs.
- Set up webhooks for provisioning and downgrades.
- Configure dunning emails and failed-payment retries.
- Test with realistic scenarios (trial end, proration, refunds).
Final Recommendation
Pick Stripe for API flexibility and SaaS tooling, Paddle if you want taxes and compliance offloaded, and Braintree for PayPal-heavy markets. Choose based on how much control vs offload you need.
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