Joshua D'Costa
Growth & Marketing
Feb 18, 2025
|
5
min
Poland's Software as a Service (SaaS) market is experiencing significant growth, with revenue projected to reach $1.09 billion in 2025 and expand at a 20.26% CAGR, hitting $2.28 billion by 2029. This growth is driven by increasing digital transformation initiatives among local businesses seeking advanced cloud solutions.
However, as Polish SaaS companies scale globally, they encounter key challenges, including complex compliance requirements and limited access to international payment gateways.
This is where a Merchant of Record (MoR) comes in as a solution designed to simplify global payment processing, cross-border tax and compliance, and help businesses focus on growth.
Let’s explore why Polish companies need a Merchant of Record, the challenges they face, and how Dodo Payments can help them succeed on the global stage.
Why Polish Companies Need a Merchant of Record
When it comes to cross-border transactions, Polish businesses often struggle. Limited access to reliable international payment gateways, strict regulatory requirements, and the complexities of handling VAT and other taxes can hinder global expansion.
Global players like Stripe and PayPal are popular options for many but they come with significant hurdles in Poland. For example, Stripe does offer the ability to accept payments via Przelewy24(P24), a local payment provider in Poland. however, some users may find it inconvenient that they can't directly integrate Blik with Stripe, a widely used mobile payment method in Poland or another popular local payment provider PayU.
PayPal Europe on the other hand has faced significant regulatory challenges in Poland, resulting in a $27.3 million fine for its unclear contract provisions. Poland's antitrust and consumer protection authority, UOKiK, determined that the language used in PayPal's contracts was too vague, leaving customers unsure about which actions were prohibited and what penalties could be imposed.
The success of Poland BLIK is highlighting a strong shift towards a digital economy, With over 12 million active users and 30 million transactions processed in 2024 alone. Although local payment methods like BLIK boost convenience and drive sales domestically, businesses looking to scale internationally.
These challenges make it even more essential for companies to adopt a Merchant of Record model that can handle these issues.
Challenges in Expanding Globally from Poland
Limited Access to International Payment Gateways
Many global payment platforms, like Stripe and PayPal, have restrictions or require businesses to set up foreign entities. This can be a significant barrier for Polish businesses looking to access international markets.
Complex Regulatory Environment
Poland’s regulatory landscape includes strict e-commerce laws, the General Data Protection Regulation (GDPR) compliance, and evolving tax policies. Navigating these requirements can be time-consuming and costly, especially for small and medium-sized enterprises (SMEs).
Tax Compliance
Handling VAT, GST, and other tax obligations for cross-border transactions is a major challenge. Businesses need professional guidance right from the start, assistance during the VAT and VAT-UE registration process. Failing to meet tax requirements can result in severe penalties, costly audits, and ultimately, lost revenue.
Delayed Payments
International transactions often come with delays or blocked payments, disrupting cash flow and hindering business growth.
How Dodo Payments Can Help
The Merchant of Record (MoR) solution is designed to simplify global payment processing and ensure compliance.
This is how Dodo Payments helps;
1. Seamless International Payments
With Dodo Payments, you can accept payments from customers in over 150+ countries, in multiple currencies, without restrictions. Whether your customers are in Europe, the Americas, or Asia, payments flow effortlessly.
2. Compliance & Tax Handling
We take care of all your tax obligations, including VAT and GST, so you don’t have to worry about audits or penalties. Our automated compliance system ensures you’re always up-to-date with Polish and international regulations.
3. Secure Payouts
Dodo Payments delivers dependable, and secure payouts, ensuring your cash flow remains steady. So, businesses can concentrate on expansion and growth without the hassle of delayed funds.
4. No Foreign Entity Required
Forget the hassle of setting up a foreign business entity or opening offshore bank accounts. With Dodo Payments, you can sell internationally without any of these complications.
Final Thoughts
Businesses aiming to expand in Poland cannot afford to overlook the importance of integrating Merchant of Record into their payment options. Global expansion comes with its own set of challenges; from limited access to international payment gateways to complex tax and regulatory requirements, businesses need a solution that simplifies global transactions.
A Merchant of Record (MoR) like Dodo Payments can help Polish businesses overcome these challenges. With seamless international payments, reliable payouts, and no need for foreign entities, making global expansion simpler and hassle-free.
Explore Dodo Payments and experience the future of seamless, compliant, and hassle-free payment processing.
