SaaS Payment Providers: The Ultimate Comparison Guide

Quick Comparison Table

Stripe: The Enterprise Solution

Overview: Stripe has established itself as the industry standard for payment processing, offering unmatched flexibility and customization options.

Key Strengths:

• Most comprehensive API with support for complex billing models
• Extensive payment method support across 135+ currencies
• Powerful testing tools and sandbox environments
• Advanced fraud prevention and revenue recovery tools
• SDKs for virtually every programming language

Integration Approach:

// Creating a subscription with Stripe Checkout
const session = await stripe.checkout.sessions.create({
  mode: "subscription",
  payment_method_types: ["card"],
  line_items: [{ price: "price_1234", quantity: 1 }],
  success_url: `${process.env.DOMAIN}/success`,
  cancel_url: `${process.env.DOMAIN}/canceled`,
});
 
// Redirect to checkout
response.redirect(303, session.url);

When to Choose: Select Stripe when you need maximum flexibility, have development resources available, and require support for global payment methods or complex subscription models.

Lemon Squeezy: The Indie Hacker's Choice

Overview: Lemon Squeezy has quickly gained popularity among indie hackers and small teams for its simplicity and all-inclusive approach.

Key Strengths:

• Merchant of Record status eliminates tax compliance headaches
• Built-in affiliate system
• Drop-in Customer Portal with zero development
• Ready-to-use sample applications (e.g., Next.js billing portal)
• Excellent onboarding experience for non-technical founders

Integration Approach:

// Generate checkout URL with Lemon Squeezy
const checkoutUrl =
  `https://yourstore.lemonsqueezy.com/checkout/buy/${variantId}?` +
  `checkout[custom_data]=${encodeURIComponent(
    JSON.stringify({ user_id: userId })
  )}`;
 
// Redirect to checkout
window.location.href = checkoutUrl;

When to Choose: Lemon Squeezy is ideal for founders seeking the fastest time-to-market, simplified tax handling, and minimal development overhead.

Polar: The Developer-First Solution

Overview: Polar positions itself as an open-source, developer-first payment solution with lower fees than other Merchant of Record services.

Key Strengths:

• Integration with just 5 lines of code
• Open source under Apache 2.0 license
• 20% lower fees than comparable MoR providers
• First-class no-code support alongside developer tools
• Automated benefits (entitlements) for digital products

Integration Approach:

// Next.js API route for Polar checkout
import { Checkout } from "@polar-sh/nextjs";
 
export const GET = Checkout({
  accessToken: process.env.POLAR_ACCESS_TOKEN,
  successUrl: process.env.SUCCESS_URL,
});

When to Choose: Polar is perfect for technical founders who value developer experience and open-source principles while still wanting the benefits of a Merchant of Record.

Creem: The Design-Forward Alternative

Overview: Creem is a newer entrant focusing on modern design and excellent user experience alongside robust payment functionality.

Key Strengths:

• Lower fees than other MoR services (3.9% + $0.40)
• Modern, responsive checkout experiences
• Strong focus on UX/UI for both merchants and customers
• Support for cryptocurrency payments (in beta)
• 0% fees until $1,000 in revenue

Integration Approach: Similar to other modern payment providers, with an emphasis on design customization and user experience.

When to Choose: Creem is best for design-focused startups that prioritize user experience and want a modern checkout flow with slightly lower fees than other MoR providers.

Making Your Decision

When selecting a payment provider, consider these factors:

1. Development Resources: How much technical expertise do you have available?
2. Tax Compliance: Do you want to handle tax calculations and filings yourself?
3. Customization Needs: How flexible does your payment infrastructure need to be?
4. Growth Stage: Are you just starting out or scaling an established business?
5. Pricing Model: Simple subscriptions or complex usage-based billing?

For most early-stage SaaS companies, the simplified approach of Lemon Squeezy, Polar, or Creem will likely provide the fastest path to market with the least overhead. As you scale and your requirements become more complex, Stripe's flexibility becomes increasingly valuable despite the additional development complexity.

Remember that switching payment providers later requires significant effort, so choose carefully based on your long-term vision and resources.