Head-to-head comparison

Paddle vs Recurly

At-a-glance comparison

Paddle

Paddle takes a unique approach to subscription billing by acting as a merchant of record, handling not just billing but also payments, tax compliance, and fraud prevention. This all-in-one model…

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  • Complete merchant of record solution - handle payments, tax, and compliance
  • Eliminates complexity of global tax compliance (VAT, sales tax, GST)
  • Conversion-optimized checkout with localized payment methods

Recurly

Recurly is an enterprise-grade subscription management platform built to handle the most complex billing scenarios while maintaining ease of use. The platform excels at revenue recovery and…

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  • Exceptional revenue recovery rates through sophisticated algorithms
  • Handles extremely complex subscription and pricing models
  • Strong financial reporting and revenue recognition capabilities

Where each product pulls ahead

These are the distinctive advantages that matter most in this comparison.

Paddle advantages

  • Teams should choose Paddle when: SaaS startups selling digital products globally Software vendors wanting to avoid tax compliance complexity Indie developers and small teams with limited resources

Recurly advantages

  • Teams should choose Recurly when: Enterprise businesses with complex subscription requirements Companies prioritizing revenue recovery and optimization Organizations processing high volumes of recurring revenue

Pros & Cons

Paddle

Pros

  • + Complete merchant of record solution - handle payments, tax, and compliance
  • + Eliminates complexity of global tax compliance (VAT, sales tax, GST)
  • + Conversion-optimized checkout with localized payment methods
  • + Simple pricing model - no hidden fees or setup costs
  • + Fast implementation with minimal technical resources

Cons

  • Higher transaction fees (5% + payment processing) compared to alternatives
  • Less flexibility - Paddle controls the checkout and payment experience
  • Limited customization of billing logic and workflows
  • Customer data ownership is shared with Paddle as merchant of record
  • Advanced subscription features less comprehensive than specialized platforms
  • Revenue recognition tools are basic
  • Limited integration with enterprise financial systems
  • Not ideal for businesses requiring full control over customer relationships
  • Reporting capabilities less advanced than dedicated billing platforms
  • B2B quote-to-cash workflows are limited

Recurly

Pros

  • + Exceptional revenue recovery rates through sophisticated algorithms
  • + Handles extremely complex subscription and pricing models
  • + Strong financial reporting and revenue recognition capabilities
  • + Excellent multi-currency and global tax compliance
  • + Proven enterprise scalability and reliability

Cons

  • Higher price point compared to some competitors
  • Setup and onboarding can be lengthy for complex implementations
  • UI feels dated compared to newer platforms
  • Limited native integrations compared to some competitors
  • Revenue experimentation features less advanced than specialized tools
  • Customer portal customization more limited than some alternatives
  • Some advanced features require custom development
  • Reporting interface could be more intuitive

Which one tends to fit which buyer?

These are conditional guidelines only — not rankings. Your specific situation determines fit.

  • Choosing between Paddle and Recurly depends on your business priorities and technical requirements. Choose Paddle if you're a software vendor wanting merchant-of-record simplicity and tax compliance handled for you. Choose Recurly if you need more sophisticated subscription management, revenue recovery, and financial operations control.