Polar vs Stripe
Overview
Choosing the right payment infrastructure for your software business.
While Stripe is a powerful payment processor, Polar is a complete billing infrastructure platform built specifically for developers who want to monetize software. The key difference: Polar acts as a Merchant of Record, handling all tax compliance globally, while Stripe is a payment processor that leaves tax compliance to you.
Feature Comparison
| Feature | Polar | Stripe |
|---|---|---|
| Payment Processing | ||
| Subscription Management | ||
| Merchant of Record | ||
| Global Tax Compliance | ||
| Framework Adapters | ||
| Automated Benefits Engine | ||
| Open Source |
Pricing
Polar
per transaction
- Global tax compliance included
- No hidden fees
- Merchant of Record service
Stripe
per transaction
- Tax compliance is your responsibility
- Subscriptions at 0.7% added fee
- Additional costs for international sales
While Stripe's base processing fee appears lower, Polar's pricing includes Merchant of Record services, global tax compliance, and international sales tax handling that would require additional Stripe products and accounting services.
Developer Experience
Designed for developers
Both Stripe and Polar offer excellent developer experiences, but Polar is purpose-built for software monetization with modern frameworks and ergonomic SDKs.
6-line integration
Polar provides a 6-line integration with framework adapters, making it easy to get started with minimal code.
Framework adapters
Polar provides native support for Next.js, BetterAuth, Laravel, and more.
Open source
Polar is open source, so you can inspect and contribute to the codebase.
Merchant of Record
The key differentiator
This is where Polar and Stripe fundamentally differ. Polar acts as the Merchant of Record, meaning we handle all the complexity of international sales tax, VAT, GST, and compliance.
With Polar (MoR)
- We handle all tax compliance
- We file tax returns globally
- We take on the liability
- You focus on building
With Stripe (Payment Processor)
- You handle tax compliance
- You file tax returns in each jurisdiction
- You carry the liability
- Requires accounting/legal support
Why Choose Polar?
Polar is purpose-built for software businesses
While Stripe is a powerful general-purpose payment processor, Polar is specifically designed for developers monetizing software. If you want to sell globally without worrying about tax compliance, Polar is the better choice.
Zero tax complexity
Sell globally from day one without worrying about VAT, GST, or sales tax.
Lower total cost
No need for additional tax software, accountants, or legal counsel for international sales.
Built for software
Features designed specifically for SaaS, digital products, and software licensing.
Open source transparency
See exactly how the platform works and contribute to its development
Ready to simplify your payments?
Join thousands of developers who have chosen Polar for hassle-free global software monetization.