Overview
Lemon Squeezy is a merchant of record for software and digital products: it resells your product, handles sales tax, and charges 5% + 50¢ per transaction plus surcharges, as of October 2026. Stripe acquired Lemon Squeezy in 2024, and the company's 2026 update says its goal is to give users an easy way to migrate to Stripe Managed Payments. That has led many founders to research Lemon Squeezy alternatives.
This page compares merchants of record and related options for digital product sellers. Fees come from each provider's own pricing pages as of October 2026; check the current pages before switching.
Why people look for Lemon Squeezy alternatives
The main reason is uncertainty about the product's direction. Lemon Squeezy's 2026 update acknowledges that the Stripe transition has meant slower support responses and less frequent product updates, and says Stripe Managed Payments is the basis for the next version of the service. Founders building something new may prefer to choose a long-term platform now rather than migrate later.
Fees are the other reason. Lemon Squeezy's surcharges add 1.5% for international transactions, 1.5% for PayPal, and 0.5% for subscription payments on top of its 5% + 50¢ base. Depending on your customer mix, another merchant of record or a payment processor may cost less.
The alternatives
1. Stripe Managed Payments
Best for: Eligible digital product sellers who want Stripe itself as merchant of record
Managed Payments makes Stripe, through Link, the merchant of record for eligible digital products, handling sales tax, VAT, and GST in more than 80 countries, fraud, and disputes. As of October 2026 it adds 3.5% per transaction to standard Stripe processing fees, works only with Checkout and Payment Links, and requires a supported business location and product category.
2. Paddle
Best for: SaaS, apps, and games that want a software-focused merchant of record
Paddle is a merchant of record for software companies. As of October 2026 its pay-as-you-go rate is 5% + 50¢ per checkout transaction, including payments, subscriptions, global tax compliance, fraud protection, and chargebacks, with custom pricing at volume. Payouts are monthly. RevenueBug does not currently support Paddle.
3. Polar
Best for: Developers and AI products that need usage billing and automated access benefits
Polar is an open-source merchant of record. As of October 2026 its free Starter plan charges 5% + 50¢, and paid plans from $20 a month lower the rate, with +1.5% for non-US cards. It supports subscriptions, usage-based billing, license keys, file downloads, and GitHub and Discord access. RevenueBug supports Polar.
4. Dodo Payments
Best for: SaaS and AI products, including teams outside the US, wanting a lower base rate
Dodo Payments is a merchant of record for SaaS, AI, and digital products. As of October 2026 its standard rate is 4% + 40¢ for domestic US card transactions, with +1.5% international and +0.5% for subscriptions, plus $1 per refund and $30 per chargeback. RevenueBug supports Dodo Payments.
5. Gumroad
Best for: Creators selling digital products to an existing audience
Gumroad charges 10% + $0.50 per transaction on sales through your profile or direct links, and 30% on sales found through its Discover marketplace, as of October 2026. It says it handles sales tax obligations as merchant of record. It is creator-focused rather than built for SaaS billing. RevenueBug does not currently support Gumroad.
6. RevenueBug
Best for: Founders who want a public, provider-verified revenue record that survives a provider switch
RevenueBug is not a payment provider and does not replace Lemon Squeezy for checkout or tax. It connects to Lemon Squeezy, Stripe, Polar, Dodo Payments, and other supported providers and publishes trailing 30-day revenue and a daily history calculated from that provider's data. If you migrate, you can connect the new provider; each connection's verified scope is described on its integration page.
How to choose
First decide whether you want a merchant of record at all. If you sell globally and do not want to register for and file sales tax and VAT, choose a merchant of record such as Stripe Managed Payments, Paddle, Polar, or Dodo Payments. If you already handle tax, standard Stripe processing costs less per transaction.
Next, check eligibility and features. Merchants of record restrict what you can sell; most exclude physical goods and human services. Compare subscription, usage billing, license key, and payout features against what your product needs, and model fees using your real mix of international, PayPal, and subscription payments.
Finally, plan the migration. Ask each provider how existing subscriptions, customer records, and license keys can be moved, and tell customers before anything about checkout or billing changes.
Features, fees, and terms change. Check each provider's current pages before choosing.