What Is a MoR and Why SaaS Needs One
A Merchant of Record (MoR) is an intermediary that legally becomes the seller of your product. It accepts payments, pays taxes (VAT, GST, sales tax), and handles compliance in every country where you sell. For a SaaS company, this means: no need to register for VAT in 27 EU countries, no need to figure out Indian GST, and no need to hire a tax consultant for every new market.
Sites: fastspring.com | paddle.com
FastSpring and Paddle are the two leaders in the MoR niche for digital goods and SaaS. Both solve the same problem but with different approaches and pricing. Let’s examine three real-world scenarios.
Scenario 1: Indie Developer with a Single $49 Product
You built a desktop app sold through a landing page. Traffic: 5,000 visitors/month, 2% conversion → 100 sales/month → $4,900/month.
FastSpring charges 5.9% + $0.95 per transaction. At a $49 average order: ($49 × 5.9%) + $0.95 = $3.84 per sale. Monthly commission: $384. Remaining: $4,516.
Paddle charges 5% + $0.50 per transaction. At $49: ($49 × 5%) + $0.50 = $2.95. Monthly commission: $295. Remaining: $4,605.
Difference: $89/month in Paddle’s favor. Over a year: $1,068.
Verdict: For an indie with a single product, Paddle is cheaper. Plus Paddle has a more modern checkout and better integration with the Paddle Billing API for subscriptions.
Scenario 2: B2B SaaS with $500+ Orders
Your product costs $500–2,000/month, customers are enterprise. They need invoices, PO numbers, bank transfer payments, Net-30/Net-60.
FastSpring offers Interactive Quotes: you create a commercial proposal with custom terms, the client accepts and pays. Support for wire transfer, ACH, SEPA Direct Debit. Custom invoice tailoring to client requirements. FastSpring is historically strong in B2B.
Paddle has been catching up (2024–2026): Inline Checkout with purchase order number support, Paddle Invoicing (beta), but customization still trails FastSpring.
Verdict: If B2B clients demand invoices with their company details and PO numbers, FastSpring is ahead for now. Paddle is closing the gap, but FastSpring’s enterprise features are more mature.
Scenario 3: Global SaaS with Customers in 40+ Countries
You have a subscription SaaS with 2,000 customers across the US, EU, UK, Australia, India, and Brazil. Subscriptions: $29–199/month. The main pain point: tax compliance in every country.
FastSpring handles VAT (EU), GST (India, Australia), sales tax (US, Canada), IVA (Mexico, Colombia). 30+ jurisdictions total. Automated tax filing — FastSpring submits returns directly.
Paddle covers VAT (EU + UK), US sales tax, GST (Australia, NZ, Singapore, India), but still trails FastSpring in Latin America and the Middle East.
If your geography is EU + US + UK + AU: both work, Paddle is cheaper (5% + $0.50 vs 5.9% + $0.95).
If you have customers in India, Brazil, Mexico: FastSpring covers more jurisdictions.
Additional Factors
| Factor | FastSpring | Paddle |
|---|---|---|
| Founded | 2005 | 2012 |
| Partner program | Via PartnerStack, up to 10% commission | Partner program, terms on request |
| API / Documentation | REST API, good docs | REST API, excellent docs |
| Webhook integrations | 40+ events | 50+ events |
| Checkout customization | Popup + hosted page | Inline + overlay + hosted |
| Minimum payment | None | None |
| Payout schedule | Monthly/weekly | Monthly (daily from $100K/mo) |
Regional Choice
For an EU-registered business, Paddle is usually preferable: HQ in the UK, closer European support team, better European banking integration.
For a US-based business with B2B sales, FastSpring (California) has deeper enterprise features and per-state tax support.
Conclusion: Which to Choose
Paddle if you run a subscription SaaS, sell primarily to EU+US+UK+AU, need a modern API, and count every cent of commission.
FastSpring if you sell B2B with larger transaction sizes, need maximum tax jurisdiction coverage, or require Interactive Quotes for enterprise clients.
Both platforms are mature and reliable. The choice comes down to the nuances of your business, not “which is better.” For many SaaS companies, the optimal strategy is: start with Paddle (cheaper at launch), and consider FastSpring as the B2B segment grows.