Stripe vs Paddle vs Lemon Squeezy: Which Payment Gateway in LATAM

Stripe, Paddle, Lemon Squeezy and Mercado Pago to charge a SaaS from Latin America: real fees, Merchant of Record, digital VAT and a 10,000 USD simulation.

Quick comparison
Payment processor vs Merchant of Record
- Payment processor: full control, tax burden on you
- Merchant of Record: someone else takes on the taxes
Digital VAT in Latin America: what you need to know
The four options, one by one
Simulation: a SaaS that bills 10,000 USD a month
Decision matrix
How to implement it step by step

Choosing how to charge for a SaaS or digital product from Latin America is not just a matter of comparing the percentage per transaction. The real question is who takes on the taxes: you use a payment processor (Stripe, Mercado Pago), and you register for and file VAT wherever you sell, or you hand that job to a Merchant of Record (Paddle, Lemon Squeezy), which acts as the legal seller in exchange for a higher fee.

This guide compares the four options using the standard rates published as of November 2026, explains the digital VAT landscape in the region's main countries, and runs the numbers for a SaaS that bills 10,000 USD a month.

Quick comparison

Platform	Model	Base fee	Common surcharges	Taxes	Best for
Stripe	Processor (PSP)	2.9% + 0.30 USD (US)	+1.5% international card, +1% currency conversion, Billing and Tax billed separately	Stripe Tax calculates; you file	Teams with a company in the US, Mexico or Brazil and an accounting function
Paddle	Merchant of Record	5% + 0.50 USD	Flat fee, no surcharge per country	Included: Paddle files	Growing B2B SaaS that sells to many countries
Lemon Squeezy	Merchant of Record	5% + 0.50 USD	+1.5% international, +0.5% subscriptions	Included	Solo founders, micro-SaaS, digital products
Mercado Pago	Processor (PSP)	Varies by country and payout term	Depends on payment method and installments	Local withholdings depending on the country	B2C sales within LATAM

Payment processor vs Merchant of Record

Payment processor: full control, tax burden on you

With Stripe or Mercado Pago, the customer buys from your company. The gateway only moves the money.

Pros: lower fees and full control of checkout, invoicing and the customer relationship.
Cons: you are responsible for registering, calculating, filing and paying VAT, GST or sales tax wherever you have an obligation. With customers in many countries, that means an accountant, software, or both.

Merchant of Record: someone else takes on the taxes

With Paddle or Lemon Squeezy, the customer buys from the MoR, and the MoR pays you what was sold minus its fee.

Pros: the MoR registers and files taxes in the jurisdictions where it sells, handles chargebacks and fraud, and settles with you in a single payment. Your bookkeeping gets much simpler.
Cons: higher fees and less flexibility for custom B2B contracts.

To see how each point of fee affects your margin, use the profit margin calculator.

Digital VAT in Latin America: what you need to know

Countries in the region increasingly tax digital services sold by foreign companies. A general overview (it does not replace an accountant):

Colombia: 19% VAT on digital services provided from abroad. There is also the Significant Economic Presence (PES) regime for non-residents with income or users in Colombia above certain thresholds, with the option of a 10% withholding or of declaring 3% of gross income. The Tax Statute excludes some cloud computing services from VAT; confirm with your accountant whether your SaaS qualifies.
Mexico: 16% VAT on digital services from foreign platforms, with SAT registration and special withholdings when the platform intermediates sales by third parties.
Chile: 19% VAT on digital services provided by non-residents to people in Chile.
Argentina: 21% VAT on digital services from abroad, plus provincial perceptions depending on the payment method.
Brazil: is in the middle of a transition to a dual VAT (federal CBS and subnational IBS), which gradually replaces several taxes between 2026 and 2033.

With an MoR, the platform handles this. With a processor, it is your responsibility.

The four options, one by one

1. Stripe: the technical standard, with country restrictions

Stripe has the best API and documentation on the market, and a complete ecosystem (Billing for subscriptions, Radar against fraud, Tax for calculating taxes).

Availability: in LATAM, it only opens accounts for companies in Mexico and Brazil. From Colombia, Chile, Argentina or Peru, the usual route is to set up a US company with Stripe Atlas, which brings its own obligations.
Standard fees (US): 2.9% + 0.30 USD per card charge; +1.5% if the card is international; +1% if there is currency conversion. Billing and Tax are charged as additional percentages of volume.
Watch out: Stripe Tax calculates the tax, but filing and payment remain yours.

2. Paddle: the all-in-one option for B2B SaaS

Fee: 5% + 0.50 USD per transaction, with no extra surcharge per country or for the subscriptions module.
Taxes: Paddle is the legal seller and files the consumption tax in the countries where it sells.
B2B: supports corporate invoices, payment terms and recurring billing management with retries (dunning).
Watch out: the initial verification is stricter, and the exchange rate applied at payout can add an implicit cost.

3. Lemon Squeezy: fast to start

Lemon Squeezy, which Stripe acquired in 2024, is an MoR designed to launch digital products, software licenses and simple subscriptions quickly.

Includes: hosted checkout, license keys, an affiliate program and abandoned cart emails.
Fees: 5% + 0.50 USD base, +1.5% for international payments and +0.5% for subscriptions.
Limits: not designed for sales teams with complex corporate contracts, purchase orders or invoicing on credit terms.

4. Mercado Pago: the strongest for B2C sales within the region

Local payment methods: Pix in Brazil, SPEI in Mexico, PSE in Colombia, cash at points such as OXXO and Pago Fácil, and installments, which weigh heavily in high-ticket purchases in LATAM.
Fees: vary by country, payment method and how many days you want to wait to receive the money; check your country's table.
Watch out: it shines if your customers are in the region. If you sell to the whole world, it does not replace a global gateway.

Simulation: a SaaS that bills 10,000 USD a month

Assumptions: 200 charges of a 50 USD subscription, half with US cards and half international, all in dollars (no currency conversion). These are estimates using standard rates; your case may vary.

Item	Stripe (+ Billing + Tax)	Paddle	Lemon Squeezy
Base percentage fee	290 USD (2.9%)	500 USD (5%)	500 USD (5%)
Fixed fee per transaction	60 USD	100 USD	100 USD
International surcharge (on 5,000 USD)	75 USD (1.5%)	Included	75 USD (1.5%)
Subscriptions and taxes	≈120 USD (Billing ≈0.7% + Tax ≈0.5%)	Included	50 USD (0.5%)
Total in fees	≈545 USD	600 USD	725 USD
Filing taxes in other countries	Your cost (accountant, software, time)	Handled by Paddle	Handled by Lemon Squeezy

The takeaway: Stripe wins on fees, by about 55 USD a month compared to Paddle. But if you sell to customers in several countries and have to file taxes in each one, those 55 USD do not pay for an accountant. For a small team, the MoR usually ends up cheaper in total cost, and with less risk of a tax error.

Decision matrix

Choose Lemon Squeezy if you are solo or just starting, you sell digital products or simple subscriptions, and you want to launch this week.
Choose Paddle if you have a growing B2B SaaS, with corporate customers in several countries who ask for formal invoices.
Choose Stripe if you have a company in the US, Mexico or Brazil, an accounting area that can handle the taxes, and you need a highly customized billing flow through the API.
Choose Mercado Pago if more than 80% of your customers are in Latin America and your conversion depends on local payment methods and installments.

Before deciding, define well who you are selling to with the ideal customer profile guide: charging a company in the US is not the same as charging a consumer in Brazil.

How to implement it step by step

Look at where your sales come from. If a significant share of revenue comes from countries other than yours, prioritize a Merchant of Record.
Sort out your legal structure. If you don't have a company in the US or Europe, don't charge international sales to a personal account: you can end up with withholdings and problems documenting your income. To receive the platform's payouts in dollars, see how to get paid in dollars from Latin America.
Integrate the webhooks. Set up the events for successful payment, failed payment and cancellation in your system and your CRM. If you program with an assistant like Claude Code, also ask it for tests of those events.
Test in sandbox mode. Make test purchases to validate the invoice, the receipt and the subscription status.
Review your margin every month. Fees and exchange rates move. And if you want to reduce cancellations caused by failed payments, apply the strategies in this guide to reduce churn in B2B SaaS.

Frequently asked questions

What is a Merchant of Record (MoR)?

It is a company that sells your product in its own name: to the end customer, the legal seller is the MoR, not you. That is why it issues the invoice, collects payment, pays the VAT or sales tax of each country and handles chargebacks. Paddle and Lemon Squeezy work this way; Stripe and Mercado Pago do not.

Can I use Stripe from Colombia, Chile or Argentina?

Not directly with a local company: in Latin America, Stripe only opens accounts for companies in Mexico and Brazil. From other countries, the usual route is to set up a company in the United States, for example with Stripe Atlas, which adds costs and maintenance obligations for that company.

Which is cheaper, Stripe or Paddle?

On pure fees, Stripe. But when you sell to many countries and add the subscriptions and tax modules, plus the cost of filing in each jurisdiction, the difference shrinks or reverses. For a small team without an accounting function, Paddle or Lemon Squeezy usually cost less in total.

When does Mercado Pago make sense?

When most of your customers are in Latin America and are final consumers. Mercado Pago accepts local methods such as Pix, PSE, SPEI, cash and installments, which raises approval rates compared to a global gateway.

Are these fees final?

No. Rates change and depend on the country, the payment method and the plan you negotiate. The figures in this guide are the standard rates published as of November 2026; always check each platform's official pricing page before deciding.