The verdict
If you sell software or digital products to customers across borders, I'd pick Lemon Squeezy. The tax job alone justifies it. If you sell to consumers, or just need to be paid fast with a link or an invoice, I'd offer PayPal.
They are not exclusive. PayPal is often an extra payment method next to the main checkout, because many buyers trust an account they already have. I would not use PayPal as the only payment layer for a software business that scales. For Dutch customers, remember that iDEAL usually matters at least as much, and it has its own fee.
Side by side
| 6 points compared | ||
|---|---|---|
| Starts at | ||
| Free plan | Yes | Yes |
| API | Yes | Yes |
| MCP server | Yes | |
| Dunning & churn recovery | Yes | Yes |
| Hosted self-serve checkout | Yes | Yes |
| Links |
Plans and pricing
Lemon Squeezy
- Email MarketingFree
PayPal
- Standard business accountFree
Who each is for
Choose Lemon Squeezy if…
Pick Lemon Squeezy if you are an indie developer, small SaaS team or creator who sells digital goods worldwide and does not want to register for VAT in each country. You get checkout links, subscriptions, licence keys and downloads, and a REST API with signed webhooks and a test mode.
The cost is a fee on each sale that includes the tax work. It is for digital products only. As the seller of record, it also affects how invoices and refunds work, so check that against your accounting. The vendor's blog lists Stripe acquiring it, so read the roadmap first.
Choose PayPal if…
Pick PayPal if you run an online shop, freelance or run a small business and want to accept PayPal and cards without building a custom set-up. A payment link or invoice needs no website, storefront or hardware.
It also removes friction at checkout, because some customers will not enter card details on a shop they do not know. Fees depend on country, method and volume, with a fixed part that small orders feel most. Seller protection has conditions. It can do subscriptions and invoices, but it is not built for complex billing or tax handling.
Other options worth a look
Bills digital products as merchant of record, handling subscriptions, usage metering, tax compliance and payouts.
Handle global subscriptions, payments and tax compliance without managing VAT registration across 300+ markets.
Manages subscription billing, invoicing and revenue recognition for recurring businesses with your own payment gateways.
Send invoices, track expenses, reconcile banks and prepare VAT returns for Dutch small businesses.
Ties agency projects, time, budgets and profitability together in one place for managing client work.