Product Introduction

1. Web Checkout by Paddle is a third-party payment solution that enables app developers to direct users to external checkout flows outside of app stores, bypassing platform fees like Apple’s 15-30% commission. It offers two deployment options: Paddle-managed Hosted Checkouts for low-code implementation and a Vercel-built Starter Kit for custom integrations.
2. The product’s core value lies in reducing transaction fees to as low as 5% + $0.50 for payments over $10, providing full control over pricing and customer engagement, and accelerating growth through Paddle’s Merchant of Record (MoR) infrastructure for global tax compliance and payment processing.

Main Features

1. Hosted Checkout provides a pre-built, low-code checkout flow with automatic localization, tax calculations, and compliance, requiring no additional infrastructure or development effort.
2. Custom Checkout allows developers to build branded checkout experiences using Paddle.js SDKs, in-app starter kits, and APIs while retaining Paddle’s backend support for subscriptions, invoicing, and fraud detection.
3. Global tax automation handles VAT, GST, and sales tax calculations, remittance, and reporting across 200+ regions, eliminating manual compliance efforts and legal risks for developers.

Problems Solved

1. The product addresses the high fees (15-30%) imposed by app stores on in-app purchases, enabling developers to retain more revenue by processing payments externally.
2. It targets app developers and SaaS businesses seeking to monetize users outside app stores, particularly those with cross-platform offerings or global customer bases.
3. Typical use cases include running time-limited sales, implementing custom cancellation flows to reduce churn, and collecting direct customer data for personalized marketing.

Unique Advantages

1. Unlike standard Payment Service Providers (PSPs), Paddle acts as a Merchant of Record, handling tax compliance, refunds, chargebacks, and fraud prevention, which reduces operational overhead for developers.
2. The Vercel-built Starter Kit and Paddle.js SDKs enable faster integration (minutes instead of weeks) compared to building custom checkout systems from scratch.
3. Competitive advantages include cross-platform support for web and mobile apps, SaaS-specific billing models, and direct payouts without 60-day delays typical of app stores.

Frequently Asked Questions (FAQ)

1. Why has Paddle charged me? Paddle acts as the Merchant of Record, meaning transactions appear as charges from Paddle on user statements, but funds are transferred to your account minus fees.
2. How does Paddle handle refunds and chargebacks? Paddle manages all refund processing, dispute resolution, and customer support for transactions, reducing administrative burden for developers.
3. Can I use Web Checkout for subscriptions? Yes, the product supports flexible multi-product subscriptions with automated billing, dunning, and retention tools like pause/cancel flows.
4. Does Paddle comply with GDPR and global tax laws? Paddle automatically calculates, collects, and remits taxes in 200+ markets and adheres to GDPR, SOC 2, and other regulatory standards.
5. How long does integration take? Hosted Checkout can be deployed in minutes using embeddable code, while custom integrations typically take under a week using Paddle’s APIs and SDKs.