Business
Integrating Payment Gateways: Stripe vs PayPal vs Lemon Squeezy
July 26, 2026
AIToolXRadar Editorial Team
6 min read
Monetizing developer tools globally requires handling complex regional sales tax compliance (VAT, GST), fraud prevention, and subscription lifecycles. Choosing the right payment architecture depends on your business entity and compliance bandwidth.
1. Direct Gateway vs Merchant of Record (MoR)
| Model | Representative Providers | Global Tax Handling | Transaction Fees |
|---|---|---|---|
| Direct Gateway | Stripe, PayPal | Merchant's responsibility (via Stripe Tax) | 2.9% + $0.30 |
| Merchant of Record | Lemon Squeezy, Paddle | 100% Automated by Provider | 5% + $0.50 |