Stripe vs Lemon Squeezy: Which Payment Stack is Best for SaaS in 2025?

The moment you decide to charge money, you face a dilemma: Stripe or Lemon Squeezy?

It used to be an easy choice. Stripe was the only game in town. But recently, "Merchant of Record" (MoR) platforms like Lemon Squeezy and Paddle have surged in popularity.

So, which one should you choose for your SaaS?

Here is the honest breakdown based on our experience building Sabo.

The Core Difference: Processor vs MoR

Stripe is a Payment Processor

They handle the credit card transaction.

You are the seller.
You are responsible for calculating and remitting sales tax (VAT, GST) in every country you sell to.
Fees: ~2.9% + 30¢ per transaction.

Lemon Squeezy is a Merchant of Record (MoR)

They technically "buy" your product and resell it to the customer.

They are the seller.
They handle all global tax compliance for you.
Fees: ~5% + 50¢ per transaction.

The Case for Lemon Squeezy

If you are a solo founder selling a low-ticket ($10-$50) B2C product globally, tax compliance is a nightmare. You might owe $2 to Germany, $5 to the UK, and $1 to Japan.

Lemon Squeezy handles this completely. You don't file taxes; they send you one "payout" check. The peace of mind is worth the extra 2% fee.

The Case for Stripe (Why Sabo Chose It)

However, if you are building a B2B SaaS or a high-ticket product, Stripe is usually the better choice.

Lower Fees: On a $299 product (like Sabo), the difference is significant.
- Stripe: ~$9
- Lemon Squeezy: ~$15.50
- You save ~$6.50 per sale. Multiply that by 1,000 customers.
Control: You own the customer relationship directly. Your name appears on their bank statement, not "Lemon Squeezy".
Ecosystem: Stripe Connect, Stripe Atlas, and the vast array of integrations make it the industry standard for a reason.

Tax Headache? Not Really.

The biggest fear with Stripe is taxes. But tools like Stripe Tax now automate most of this for you. Unless you are doing massive volume in specific EU countries, you often fall under "micro-business" thresholds anyway.

Sabo's Hybrid Approach

We built Sabo with Stripe integration out of the box because it's the most flexible and cost-effective option for 90% of startups.

Pre-built Webhooks: We handle the complex webhook logic to sync Stripe status with your Supabase database.
Customer Portal: Let users manage their subscriptions without writing code.
Checkout Sessions: Secure, conversion-optimized payment pages.

We handled the hard engineering part of Stripe so you can enjoy the lower fees.

Verdict

Choose Lemon Squeezy if: You sell low-cost digital goods to consumers in 100+ countries and are terrified of taxes.
Choose Stripe if: You are building a serious SaaS business, want lower fees, and want full control over your financial stack.

Start monetizing with the industry-standard Stripe stack in Sabo.