Lemon Squeezy is completely free with 8 features included. No paid tiers offered, making it perfect for budget-conscious users.
Lemon Squeezy becomes the legal seller of your products. They collect payment, handle tax calculation and remittance globally, and pay you the net revenue minus their fees. Customers receive receipts from Lemon Squeezy, not your business directly. This eliminates your need to register for VAT, track tax thresholds, or file tax returns for digital sales.
Base fee is 5% + $0.50 per transaction. Add 1.5% for international (non-US) card payments, 1.5% for PayPal, 0.5% for subscription renewals, 5% for recovered abandoned carts, and 3% for affiliate-generated sales. For a typical international subscription sale, expect 7-8% total. A $20 product sold internationally nets you roughly $17.94.
Stripe acquired Lemon Squeezy in 2024. The existing platform continues to operate, but the team is building Stripe Managed Payments, which brings merchant-of-record functionality to Stripe's infrastructure. In January 2026, they announced reduced payout fees and the upcoming Managed Payments product. Existing Lemon Squeezy stores keep working.
Both are merchant-of-record platforms for digital products. Paddle charges 5% + $0.50 (similar to Lemon Squeezy) but is more focused on SaaS with better subscription analytics and B2B features. Lemon Squeezy is simpler to set up and better for individual creators selling courses, templates, and smaller software products.
Lemon Squeezy provides migration tools for importing customer data. However, since they become the merchant of record, customers technically start new billing relationships. Active subscriptions need to be recreated. Plan transitions carefully to minimize customer confusion and churn.
It's completely free — no credit card required.
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Last verified March 2026