Joshua D'Costa
Growth & Marketing
Oct 24, 2024
|
5
min
With Lemon Squeezy recently getting acquired by Stripe, a lot of questions have arisen about the Merchant of Record.
Questions like:
Will the platform stop onboarding indie hackers and solopreneurs?
What happens to Indian merchants trying to get onboard by Lemon Squeezy?
Will there be implications now that Stripe is in charge of the platform which was the very platform it was posing itself as an alternative to?
Some of the above questions remain unknown, but more clarity is being formed over time and the mutual sense is an alternative should be foreseen.
The solutions mentioned are not arbitrarily thought of but are proactively actually sought out by current merchants facing issues with Lemon Squeezy. Stories about how it’s taking months to onboard merchants and poor customer experience with a lot of their team leaving the ship.
With all this kept in mind, below is a summary of the best alternatives to Lemon Squeezy with information best to our knowledge.
Introduction
Finding the right payment gateway is crucial for businesses whether in India or across teh world looking to scale their operations and reach a global audience. While Lemon Squeezy is a popular choice, its recent delays in onboarding Indian merchants and rejections have led many to seek alternatives.
In this blog, we explore the top 5 alternatives to Lemon Squeezy: Dodo Payments, Stripe India, Razorpay, Gumroad, and Paddle. We’ll delve into their strengths, drawbacks, and pricing structures to help you make an informed choice.
Why Consider Alternatives to Lemon Squeezy?
Lemon Squeezy has gained a reputation for its user-friendly interface and robust features tailored for digital creators. However, Indian merchants have faced challenges with delayed onboarding processes and, in some cases, outright rejections. If you're looking for a more reliable solution, it's worth exploring these alternatives that cater to different business needs.
Alternatives to Lemon Squeezy
Stripe India
Overview:
Stripe India is known for its developer-friendly API and robust payment infrastructure. It is a preferred choice for tech-savvy businesses looking for extensive customization options.
Pros:
Powerful API for customization and integrations.
Excellent support for global payments, making it ideal for SaaS businesses.
Cons:
Currently invite-only in India, making access restricted.
Not a Merchant of Record, so businesses must manage tax compliance themselves.
High transaction fees compared to some local alternatives.
Pricing:
Stripe India’s pricing is on the higher side with a per-transaction fee, and businesses need to account for the additional costs of managing tax compliance.
Fee - 2% for cards in India & 3% for cards outside India
Additional fees per transaction for subscription fees, International Card fees, Non-Domestic Currency fees, and Tax & Compliance fees which all together totals up to around 4% in additional fees depending on the use case.
Dodo Payments
Overview:
Dodo Payments is a versatile Merchant of Record solution, specifically designed to cater to Micro SaaS businesses, indie hackers, and solopreneurs across India and the world. With a focus on simplifying global payments, Dodo Payments handles the complexities of tax compliance and regulatory requirements, allowing businesses to focus on growth.
Pros:
Comprehensive Merchant of Record services, simplifying global tax compliance.
Competitive pricing, especially for merchants targeting international customers.
Supports a wide range of payment methods, thereby enhancing global reach.
Cons:
Limited availability of certain advanced analytics features compared to more established platforms.
Pricing:
Dodo Payments offers a transparent pricing model tailored to all small and medium-sized businesses, making it a cost-effective option for those starting out.
Fee - 5% + 50¢ per transaction
The fee includes a whole list of features like a Global Payment Gateway, Tax & Compliance, and inbuilt tools for Billing, Churn, Fraud, etc.
More about the pricing can be found here: https://dodopayments.com/pricing
Razorpay
Overview:
Razorpay is one of India's leading payment gateways, known for its local market expertise and ease of use. It is a popular choice for businesses looking to accept domestic payments.
Pros:
Localized payment options, including UPI and net banking.
Simple setup process and user-friendly dashboard.
Cons:
Lacks the necessary infrastructure for global scaling, especially for SaaS businesses.
Not a Merchant of Record, which means businesses need to handle international tax compliance.
Limited international payment support compared to other platforms.
Pricing:
Razorpay offers competitive rates for domestic transactions but may become costly when scaling to international markets due to added compliance costs.
Fees are 3% per transaction as a platform fee plus GST.
Gumroad
Overview:
Gumroad is widely used by creators and indie developers to sell digital products. Its simplicity and community-focused features have made it a go-to for smaller projects.
Pros:
Extremely user-friendly, with a streamlined setup process.
Supports a variety of digital product types, from e-books to software.
Cons:
Expensive pricing, especially for high-volume sellers, with a 10% fee on each sale.
Limited support for scaling to international markets due to its focus on smaller businesses.
Pricing:
Gumroad charges a flat fee of 10% per transaction, which can quickly add up for businesses with larger volumes.
Additional fees of Payment Gateway like Stripe or Paypal which is around 3.49% plus 50¢ on both for per transaction.
Paddle
Overview:
Paddle offers a robust Merchant of Record solution, making it an attractive choice for larger SaaS businesses seeking to simplify their payment processes and focus on international markets.
Pros:
Comprehensive Merchant of Record services, handling VAT, sales tax, and compliance.
Strong focus on global payments, making it suitable for enterprise-level companies.
Cons:
Primarily focused on enterprise businesses, which can make it less accessible to smaller companies.
Higher pricing tier, which might not be suitable for startups or indie developers.
Pricing:
Paddle’s pricing is geared towards enterprise clients, with custom quotes for businesses based on their specific needs.
Fees for non-enterprise are 5% plus 50¢ per transaction
Additionally, there is a Non-Domestic currency fee of 3%.
Conclusion
Choosing the right payment gateway depends on your business needs, size, and market focus. If you’re looking for a solution tailored for Indian Micro SaaS businesses, Dodo Payments is an excellent option.
It offers a seamless way to manage global payments while handling the complexities of tax compliance as a Merchant of Record.
For those with more extensive customization needs, Stripe India and Paddle provide robust options, albeit with some limitations. Stripe India is invite-only and it may be quite hard to get onboard their platform.
Razorpay remains a strong choice for businesses primarily focused on the Indian market only, while Gumroad is best for creators willing to pay a premium for simplicity.
Consider your specific requirements and choose the payment solution that best aligns with your goals.
All in all with the questions around Lemon Squeezy, it’s imperative to have options to switch to and due diligence to move to a platform that best suits your needs.