Paddle

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.