Joshua D'Costa
Growth & Marketing
May 22, 2025
|
5
min
Stripe’s announcement of Managed Payments at Stripe Sessions 2025 marks a pivotal shift: for the first time, Stripe will act as the Merchant of Record (MoR), assuming legal responsibility for subscriptions sold through its platform. This move lets businesses offload the complex tasks of tax compliance, PCI‑DSS adherence, chargeback resolution, and customer support to Stripe, all within the familiar Stripe Dashboard
Built on Stripe’s acquisition of Lemon Squeezy and led by JR Farr, Managed Payments aims to reduce merchant overhead and foster deeper customer trust, while enabling Stripe to expand its service offerings and maintain competitive margins
In private preview now for North American and European SaaS and digital goods merchants, Managed Payments will gradually roll out globally throughout 2025.
What Is Stripe Managed Payments?
Stripe Managed Payments is Stripe’s native MoR solution for subscription-based digital services, unveiled during Stripe Sessions 2025. It transforms Stripe from merely a payment processor into the legal seller of record for eligible transactions.
At Stripe Sessions 2025, Stripe introduced Managed Payments. It's a full‑stack Merchant of Record service—built directly into the Stripe Dashboard and entering private preview for select partners.
Stripe Managed Payments automates tax collection and remittance (now covering VAT in over 100 countries), employs AI‑driven fraud prevention with Smart Disputes (boosting chargeback win rates by 13 %), and handles transaction‑level customer support and digital fulfillment on your behalf.
Currently in private preview, Stripe Managed Payments supports subscription‑based SaaS and digital goods sold to customers in North America and Europe, with plans to expand availability throughout 2025.
Why Use a Merchant of Record?
Simplify Compliance
A MoR automates the entire VAT/GST/sales‑tax lifecycle from monitoring thresholds to filing returns, so you avoid registering and remitting taxes in every jurisdiction you sell into
Offload Risk
By designating your MoR provider as the legal seller, you transfer liability for fraud, disputes, and regulatory compliance, reducing potential fines and reputational damage
Focus on Growth
With compliance and back‑office operations handled, your team can prioritize product innovation, marketing initiatives, and customer acquisition rather than wrestling with tax forms and chargeback disputes
Dodo Payments at a Glance
Dodo Payments is a global Merchant of Record(MoR) provider trusted by SaaS and digital content platforms. Its core capabilities include:
It automates VAT, GST, and withholding compliance across 150+ jurisdictions, ensuring seamless global tax management without the administrative burden.
Provides 25+ localized payment options tailored to regional consumer preferences, helping to boost conversion rates by using familiar, trusted payment methods.
Efficiently handles subscription management, supporting recurring billing and seamless management of upgrades or downgrades for SaaS-based solutions.
Ensures top-tier security with built-in KYC/AML processes, PCI-DSS certification, and
24/7 transaction-level customer support to safeguard global transactions and maintain compliance.
Feature Comparison
Feature | Stripe MoR | Dodo Payments |
Tax & Compliance | Automated for NA & EU | Global (150+ regions) |
Local Methods | Cards, Link wallet | Cards + local schemes |
Customer Support | Integrated via Stripe Link | 24/7 dedicated support |
Multi‑Currency Settlements | N/A | Yes |
Developer APIs | Stripe SDKs | |
Fraud & Dispute Handling | AI‑driven Smart Disputes | Custom rule engines |
Onboarding Time | 1–2 weeks (private preview) | 3–5 business days |
Pricing And Integration
Pricing Models
Stripe Managed Payments: Revenue‑share model (approximately 3–7% of transaction value) plus standard Stripe fees, with no upfront costs
Dodo Payments: Flexible pricing—choose between pay-as-you-go with 4% + 40¢ per transaction. For enterprises, custom pricing, premium features with volume discounts.
Integration & Onboarding
Stripe Managed Payments
Enable Managed Payments in your Stripe Dashboard
Integrate the Stripe Link checkout widget or API
Complete eligibility and regional compliance checks
Dodo Payments
Sign up and submit KYC/AML documents
Configure webhooks and obtain API credentials
Go live within 3–5 business days with regional support guidance
Choosing Between Stripe MoR and Dodo Payments
Use Stripe Managed Payments if you are a North American or European SaaS provider focused on digital subscriptions and prefer a unified Stripe-native experience. Though Stripe has a history of deboarding merchants, sometimes without warning, when internal risk thresholds are met, posing a potential disruption to your operations
Use Dodo Payments if you need extensive global reach, including emerging markets, support for local payment schemes, multi‑currency settlements, and round‑the‑clock dedicated support.
Conclusion
Stripe Managed Payments and Dodo Payments offer powerful Merchant of Record solutions, but your choice depends on the feature set and risk tolerance. Whether you need a Stripe‑native workflow or Dodo Payments's broad, stable global reach.
Run a Pilot: Apply for Stripe’s Managed Payments private preview or schedule a Dodo Payments demo.
Compare Costs: Model your expected transaction volume under each pricing plan.
Assess Market Coverage: Map your key sales regions against each provider’s country support list.
Implement & Measure: Integrate your chosen MoR solution, then track settlement speed, dispute resolution rates, and tax remittance accuracy to ensure alignment with your growth goals.
Get started with Dodo Payments today for seamless global transactions, end‑to‑end tax automation, and unwavering support.
