Payments
An honest comparison to help you pick the right payments tool in 2026.
| Feature | Paddle | Razorpay |
|---|---|---|
| Category | Payments | Payments |
| Free Tier | No | Yes |
| Paid Plan | 5% + 50c/txn | 2% per transaction |
| Enterprise | Custom | Custom |
| Best For | SaaS companies who want a complete billing solution without dealing with global tax compliance | Businesses selling in India that need local payment methods (UPI, netbanking) with a solid API |
| Feature 1 | Merchant of record | India-focused payments |
| Feature 2 | Revenue recovery | Subscriptions & invoices |
| Feature 3 | Subscription management | Payment links |
| Feature 4 | Global tax | Payouts & banking |
| Feature 5 | Checkout | Developer API |
| Website | Paddle | Razorpay |
Paddle and Razorpay are both popular choices in the payments category, but they serve different types of developers. Paddle is complete payments and tax solution for SaaS acting as merchant of record with subscription management and revenue recovery. Meanwhile, Razorpay is full-stack payments and business banking platform popular in India, with a developer-friendly API, subscriptions, and payment links.
From a cost perspective, Razorpay has the edge with a free tier available, whereas Paddle starts at 5% + 50c/txn. However, Paddle's paid offering may deliver more value depending on your specific needs.
Paddle stands out with Merchant of record and Revenue recovery, while Razorpay differentiates itself through India-focused payments and Subscriptions & invoices. The right choice depends on which capabilities matter most for your workflow. Ultimately, saaS companies who want a complete billing solution without dealing with global tax compliance, while Razorpay is best for businesses selling in India that need local payment methods (UPI, netbanking) with a solid API.
Paddle: No free tier. Paid plans start at 5% + 50c/txn. Enterprise pricing: Custom.
Razorpay: Free tier available. Paid plans start at 2% per transaction. Enterprise pricing: Custom.
Choose Paddle if you value merchant of record and revenue recovery. Go with Razorpay if businesses selling in India that need local payment methods (UPI, netbanking) with a solid API. Both are solid payments options in 2026 — the best pick depends on your team size, budget, and technical requirements. We recommend trying both (especially if they have free tiers) before committing to one.
Not sold on either Paddle or Razorpay? Check out these other payments tools:
See all Paddle alternatives or Razorpay alternatives.
Read more about payments on our Vibe Coding page.
Get the latest developer tool comparisons, reviews, and recommendations.