The AI-driven Merchant of Record platform for seamless global SaaS billing and tax compliance.
Paddle is a comprehensive Merchant of Record (MoR) platform designed to eliminate the operational overhead of scaling a SaaS business globally. By 2026, Paddle has transitioned into an 'AI-powered Revenue Delivery' ecosystem, integrating advanced machine learning to automate tax liability mapping across 200+ jurisdictions and optimize checkout conversion rates. Unlike traditional payment gateways, Paddle acts as the legal seller of record, assuming full liability for sales tax collection, remittance, and compliance. Its technical architecture centers on a unified API that consolidates subscription management, payment processing, localized billing, and involuntary churn mitigation (via Paddle Retain). The 2026 iteration features enhanced AI-driven fraud detection and predictive analytics for usage-based billing models, making it the preferred choice for high-growth software companies looking to bypass the complexities of multi-state and international tax nexus. Its modular design allows developers to implement complex billing logic—from seat-based to metered consumption—without maintaining fragmented third-party integrations for tax or dunning management.
Paddle legally buys the software from the vendor and resells it to the end user at the moment of transaction.
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An AI-powered dunning and churn prevention engine that uses localized recovery algorithms to minimize payment failures.
Real-time calculation and collection of VAT, GST, and Sales Tax based on the customer's IP and billing address.
Automatically displays local currencies and preferred payment methods (Alipay, iDEAL, PayPal) based on geo-location.
Unified engine for both self-serve credit card checkouts and manual wire transfer invoicing.
ML-based pattern recognition that screens every transaction against thousands of data points.
Flexible API allows for immediate upgrades, downgrades, and complex proration calculations.
A US-based startup wants to sell in the EU and India but cannot manage VAT and GST registrations.
Registry Updated:2/7/2026
Startup receives net payout without tax headaches
A subscription business is losing 5% of monthly revenue due to expired or declined credit cards.
A company sells a $20/mo pro plan and a $10,000/year enterprise plan requiring invoices.