Choosing the Right Payment Provider for Your SaaS: Stripe vs. Lemonsqueezy vs. Polar vs. Creem

As a SaaS developer, selecting the right payment provider is one of the most critical decisions you'll make. Your choice affects everything from revenue and customer experience to your development workflow and compliance burden. In this comprehensive comparison, we'll examine four leading payment solutions for SaaS businesses: Stripe, Lemonsqueezy, Polar, and Creem.

TL;DR Comparison

Provider	Fees	MoR	Developer Experience	Best For
Stripe	2.9% + 30¢	No	Excellent, complex	Enterprise-ready SaaS with custom needs
Lemonsqueezy	5% + 50¢	Yes	Simple, intuitive	Solo founders, indie hackers
Polar	4% + 40¢	Yes	Developer-focused	Technical founders, quick launch
Creem	3.9% + 40¢	Yes	Modern, streamlined	Design-focused SaaS startups

Stripe: The Versatile Enterprise Solution

Overview

Stripe has long been the gold standard for payment processing in the SaaS world. With its comprehensive API and extensive documentation, it offers unparalleled flexibility for businesses of all sizes.

Fees

• Standard rate: 2.9% + 30¢ per successful card charge
• Volume discounts available for businesses processing over $1M
• Additional features like Stripe Tax and Stripe Billing may incur extra fees

Developer Experience

Stripe offers a robust developer experience with:

• Comprehensive, well-documented APIs
• SDKs for virtually every programming language
• Extensive testing tools and sandbox environments
• Powerful dashboard for analytics and management

However, this power comes with complexity. Implementing Stripe often requires significant development resources, especially for advanced features.

Payment Methods

Stripe supports over 135 currencies and dozens of payment methods, including:

• Credit and debit cards
• ACH and bank transfers
• Digital wallets (Apple Pay, Google Pay)
• Local payment methods (Alipay, SEPA, etc.)

Tax Handling

Stripe is not a Merchant of Record (MoR), meaning you're responsible for:

• Calculating and collecting sales tax
• Filing tax returns
• Managing tax compliance across jurisdictions

Stripe Tax is available as an add-on service to help with tax calculations but doesn't handle filing or full compliance.

Pros and Cons

Pros	Cons
• Unmatched flexibility and customization	• Higher development complexity
• Enterprise-grade reliability and security	• Not a Merchant of Record (tax compliance burden)
• Comprehensive subscription management via Stripe Billing	• Can be overkill for simple SaaS applications
• Extensive marketplace of integrations

Lemonsqueezy: The Indie Hacker's Friend

Overview

Lemonsqueezy has rapidly gained popularity among indie hackers and solo founders for its simplicity and Merchant of Record status.

Fees

• 5% + 50¢ per transaction
• No monthly fees or setup costs
• All features included in the base fee

Developer Experience

Lemonsqueezy prioritizes ease of use:

• Simple API with clear documentation
• Quick setup with minimal code
• Pre-built checkout experiences
• Developer-friendly dashboard

Payment Methods

• Major credit and debit cards
• PayPal
• Apple Pay and Google Pay

Tax Handling

As a Merchant of Record, Lemonsqueezy handles:

• VAT/GST collection for 100+ countries
• Tax filing and remittance
• Tax compliance documentation
• Automated tax receipts to customers

Pros and Cons

Pros	Cons
• Merchant of Record status eliminates tax headaches	• Higher fees compared to Stripe
• Built specifically for digital products and SaaS	• Less customization options
• Intuitive interface with minimal setup	• Fewer payment methods than Stripe
• Excellent customer support

Polar: The Developer-Centric Solution

Overview

Polar positions itself as a developer-first payment solution designed specifically for SaaS companies.

Fees

• 4% + 40¢ per transaction
• No hidden fees
• Volume discounts available for higher-revenue businesses

Developer Experience

Polar shines in its developer-focused approach:

• Clean, well-documented API
• Webhooks for real-time event handling
• Robust CLI tools
• Designed for modern development stacks

Payment Methods

• Credit and debit cards
• Apple Pay and Google Pay
• Bank transfers in select markets

Tax Handling

As a Merchant of Record, Polar handles:

• Automated tax calculation and collection
• Tax filing across global jurisdictions
• Compliance documentation
• Handling of digital services tax requirements

Pros and Cons

Pros	Cons
• Developer-centric design and documentation	• Relatively newer player in the market
• Merchant of Record status	• Higher fees than traditional payment processors
• Specialized for SaaS business models	• More limited track record compared to established providers
• Strong subscription management features

Creem: The Design-Forward Challenger

Overview

Creem is a newer entrant that emphasizes modern design and user experience alongside robust payment functionality.

Fees

• 3.9% + 40¢ per transaction
• No monthly fees
• 0% fees until $1000 in revenue
• Transparent pricing with no hidden costs

Developer Experience

Creem offers a balance of power and simplicity:

• Modern API with clear documentation
• Emphasis on responsive design
• Quick integration options
• Strong focus on UX/UI

Payment Methods

• Credit and debit cards
• Major digital wallets
• Expanding selection of local payment methods
• Cryptocurrency payments (beta)

Tax Handling

As a Merchant of Record, Creem:

• Handles tax calculation and collection
• Manages tax filing and compliance
• Provides automated tax receipts
• Supports global tax rules and regulations

Pros and Cons

Pros	Cons
• Excellent user interface and experience	• Newer service with less market presence
• Merchant of Record status	• Still building out feature set
• Lower fees than other MoR providers	• More limited integration ecosystem
• Modern, responsive checkout experiences

Making Your Decision: Key Considerations

When to Choose Stripe

• You need maximum flexibility and customization
• You have development resources to implement complex features
• You process high volumes and can benefit from volume discounts
• You require specialized payment flows or marketplace functionality
• You're willing to handle tax compliance separately

When to Choose Lemonsqueezy

• You're a solo founder or small team
• You want to eliminate tax compliance headaches
• You prefer a simple, quick setup process
• You're looking for an all-in-one solution
• You're just starting out and want to minimize development overhead

When to Choose Polar

• You're a technical founder who values developer experience
• You need robust subscription management built-in
• You want to avoid tax compliance issues
• You appreciate modern development tools and approaches
• You need features specifically designed for SaaS businesses

When to Choose Creem

• You prioritize user experience and design
• You want lower fees than other Merchant of Record services
• You need a balance of simplicity and functionality
• You're interested in offering cryptocurrency payments
• You want a modern checkout experience for your customers

Implementation Considerations

Regardless of which provider you choose, consider these implementation best practices:

1. Test thoroughly in sandbox environments before going live
2. Plan for webhooks to handle events like subscription changes and payment failures
3. Implement proper error handling for declined payments and other edge cases
4. Design for mobile as more customers complete purchases on mobile devices
5. Consider internationalization if you plan to sell globally

Conclusion

The right payment provider for your SaaS business depends on your specific needs, technical resources, and growth stage. Stripe remains the most powerful and flexible option but requires more development work and doesn't handle tax compliance. Lemonsqueezy offers simplicity and MoR status at a higher fee, making it ideal for solo founders. Polar caters to technical founders who want a developer-friendly experience while eliminating tax headaches. Creem provides a modern, design-focused alternative with slightly lower fees than other MoR services.

By carefully evaluating your requirements against these options, you can select the payment provider that will best support your SaaS business as it grows and evolves in today's competitive market.

Accelerate Your SaaS Launch with supastarter

The good news is that all four payment providers discussed in this article can be seamlessly integrated with supastarter. Using a comprehensive starter kit like supastarter can dramatically accelerate your time to market and eliminate the headaches typically associated with payment integration. Whether you choose the flexibility of Stripe, the simplicity of Lemonsqueezy, the developer-focused approach of Polar, or the modern design of Creem, supastarter provides pre-built components and workflows that make implementation straightforward. This allows you to focus on building your core product features rather than spending weeks configuring payment systems, subscription management, and user billing interfaces from scratch.