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Reviews & Comparisons
LemonSqueezy vs Stripe: Choosing the Right Payment Solution for You
07.04.2025
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Please note that the information about the companies in this article was sourced from their respective websites as of 31 March. This information may be subject to change.
Expanding your business online is exciting and getting paid shouldn’t be difficult. Yet for many digital creators and e-commerce businesses, it is. Clunky payment setups, high fees, and tax headaches can slow everything down.
That’s why third-party platforms like LemonSqueezy and Stripe have become go-to options. But which one actually works best for your business needs? And are there alternatives that won’t overwhelm you or overcharge you? Let’s break it down.
What Is LemonSqueezy?
Lemon Squeezy is a simple, all-in-one tool built for software companies and digital creators. It was founded in 2020 in the US, but has since been acquired by Stripe in 2024, yet it remains a separate payments provider.
What Does LemonSqueezy Offer?
As the name suggests, Lemon Squeezy’s unique selling point is that it makes payments easy. It helps online merchants manage payments, subscriptions, and global taxes–all in one place. Acting as a merchant of record, it handles everything from payment processing and fees to fraud and sales tax.
Lemon Squeezy is focussed on businesses selling digital goods, so most of its clients are:
- Software-as-a-Service (SaaS) companies: Merchants can manage subscriptions and send out license keys.
- Digital product creators & sellers: The provider helps to sell ebooks, courses, templates, and more. It can also help with software licenses, digital downloads, and other assets.
Where Does LemonSqueezy Operate?
Lemon Squeezy supports sales from over 135 countries and allows merchants to receive payouts in hundreds of countries, with some exceptions.
The provider supports multiple currencies for display purposes but processes transactions in USD. It offers real-time currency conversion using mid-market exchange rates.
It should be noted that LemonSqueezy charges higher fees for non-US transactions, therefore the provider would suit best US-based businesses.
What Is Stripe?
Stripe is a global payment platform that helps businesses accept payments. It was founded in the US in 2010 and has grown into one of the biggest names in payments. Stripe is privately owned, with its founders still leading the company.
What Does Stripe Offer?
Stripe helps businesses of all sizes and industries, from start-ups to global enterprise, accept payments, both online and in-person.
Beyond payment processing software and hardware, it also offers card issuing, financial automation tools, and much more. Unlike Lemon Squeezy, which is a merchant of record, Stripe acts as a payment facilitator.
Where Does Stripe Operate?
Stripe operates with merchants in 46 countries, and sells to customers anywhere in the world.
The provider supports processing in 135 currencies. Merchants can charge in their native currency while receiving funds in their preferred currency.
Learn More About Open Banking with Noda
LemonSqueezy versus Stripe: Key Differences
As mentioned above, the key difference between LemonSqueezy and Stripe is that the former acts as a merchant of record, and the latter is a payment facilitator.
With Stripe, businesses don’t need their own merchant accounts–Stripe handles everything under its own setup. Lemon Squeezy, on the other hand, as a merchant of record, takes on full legal responsibility, including taxes and compliance. Stripe simply lets businesses plug in and start accepting payments, while it manages processing, compliance, and risk in the background.
| Merchant of Record (MoR) – LemonSqueezy | Payment Facilitator – Stripe | |
| Role | Acts as the legal seller appearing on the customer’s bank statement | Handles technical aspects of payment processing, such as transaction routing and security |
| Liability | Assumes full legal liability for transactions, including tax, disputes and chargebacks | Merchants are responsible for transaction-related liabilities |
| Compliance | Manages compliance, including tax calculations and remittances, freeing merchants from these responsibilities | Merchants manage compliance with tax laws, regulations and payment standards |
| Control over payments | Manages payment processing, which may limit customisation options | Merchants have full control over payment processing and can customise checkout experiences |
LemonSqueezy or Stripe for Online Payments
Stripe and Lemon Squeezy both help businesses get paid, but they’re built for different needs.
Lemon Squeezy is great if you’re a digital creator and needs a quick and simple setup. But it’s limited—you can’t accept pay-by-bank, offline payments, or many other payment methods. Subscriptions run through PayPal, which doesn’t give you full control.
Stripe gives you more flexibility. You can accept 100+ payment methods, including bank transfers and in-person payments. It supports advanced subscription billing and has tools for custom checkouts.
If you just want to sell digital products fast in the US, Lemon Squeezy works. But if you're planning to grow or need more options, Stripe is the better choice.
| LemonSqueezy | Stripe | |
| Checkout | Hosted checkout | Hosted or customised checkout (via user interfaces) |
| Pay-by-bank | No | Yes, multiple providers |
| Payment methods | Cards, digital wallets (PayPal, Apple Pay, Google Pay, Alipay, WeChat Pay, Cash App Pay), bank debits such as ACH | 100+ global and local payment methods |
| Subscriptions | Yes, via PayPal | Yes, via Stripe Billing |
| No-code checkout page | Yes | Yes |
| Payment links | Yes | Yes |
| Offline payments | No | Yes, via physical terminals and card readers |
Stripe vs LemonSqueezy: Other Features
As mentioned earlier, LemonSqueezy is packed with features tailored for digital-first businesses. It’s built to help merchants sell things like software, courses, or downloads with ease. You get tools for affiliate marketing, usage-based billing, discount codes, lead capture, and more—everything geared toward digital creators and SaaS companies.
Stripe, on the other hand, supports a much broader range of business needs. It goes beyond payments with tools for embedded finance like card issuing, invoicing, revenue automation, and tax handling. You also get advanced data tools, custom reporting, and support for global growth at scale.
LemonSqueezy vs Stripe: Fees
LemonSqueezy appears to be a more expensive provider, especially for non-US merchants. Stripe, on the other hand, offers more competitive pricing.
LemonSqueezy
For payments, LemonSqueezy offers transaction-based pricing of 5% + 50¢ per transaction. This includes accepting global payments, automates sales tax compliance (as LemonSqueezy is a merchant of record), AI fraud protection, access to existing features.
However, the provider mentions that some payments may be subject to additional fees:
- +1.5% for international (outside of the US) transactions
- +1.5% for PayPal transactions
- +0.5% for subscription payments
The provider also says that it can offer volume-based pricing for merchants with higher volumes. For up-to-date information on LemonSqueezy pricing, please visit the provider’s website.
Stripe
Stripe also charges merchants per transaction, offering different rates depending on the card used. The provider will charge +2% if currency conversion is required.
| Standards UK cards | 1.5%+20p |
| EU cards | 2.5%+20p |
| International cards | 3.25%+20p |
The provider also charges different rates for local payment methods, BNLP, and charges fees for disputes and chargebacks. For up-to-date information on Stripe pricing, please visit the provider’s website.
Read: How to reduce card processing fees
Noda: Simpler Alternative to Stripe and LemonSqueezy
Stripe can be overwhelming with too many features and payment methods. LemonSqueezy gets pricey—especially if you’re outside the US. If you’re a growing business looking for simple, affordable, and fast payments—Noda might be just what you need.
Pay-by-Bank
With Noda, you can accept both card and pay-by-bank payments. Our Open Banking solution connects you to 2,000+ banks across 28 countries. That means instant, secure payments with no card fees or chargebacks.
You can plug in through our Open Banking API, or skip the code entirely and get started with our no-code plugins. Perfect for taking payments or sending payouts—whatever you need. We offer Merchant of Record services too (provided by Rockbilling).
No-Code Payments
No dev team? No problem. Noda lets you create branded checkout pages, QR codes, and payment links in seconds. Send them via email, WhatsApp, or anywhere else you talk to customers.
It’s fast, flexible, and way more cost-effective than card payments. No chargebacks, no extra fees, just smooth payments and more money in your pocket.
FAQs
Is LemonSqueezy better than Stripe?
It depends on your business. LemonSqueezy is great for US-based digital creators who want an all-in-one tool with simple setup. Stripe is better for businesses that need more flexibility and advanced features. Noda is a great alternative focussed on open banking, offering fast, secure payments with no card fees or chargebacks.
Is LemonSqueezy or Stripe better?
For small digital businesses that trade in the US, LemonSqueezy might be easier. But Stripe is more powerful for growing businesses that need customisation, global approach and scale.
Is LemonSqueezy like Stripe?
They both handle payments, but in different ways. LemonSqueezy is a merchant of record (MoR), while Stripe is a payment facilitator with more flexibility. It should be also noted that LemonSqueezy charges higher fees for non-US transactions, therefore the provider would suit best US-based businesses. Noda is a great alternative—it is a payment facilitator focused on open banking and pay-by-bank payments around the world.
Is LemonSqueezy safer than Stripe?
Both are safe and secure. Stripe gives more control over how payments are handled, while LemonSqueezy manages compliance for you as a merchant of record.
How is LemonSqueezy different from Stripe?
LemonSqueezy takes legal responsibility for transactions, including taxes and compliance. It’s also a better fit for businesses that trade in the US. Stripe gives you more tools, flexibility, and freedom, but you handle compliance yourself.
Is LemonSqueezy the same as Stripe?
No–they are different payment platforms, even though LemonSqueezy was acquired by Stripe. Stripe is broader and more customisable, while LemonSqueezy is simpler and focused on digital goods and merchants that trade in the US.
Should I use LemonSqueezy or Stripe?
Use LemonSqueezy if you’re a solo creator selling digital products in the US and want an easy setup. Use Stripe if you want more features and plan to scale globally. If you're focused on affordability, security, fast international payments, and great UX, Noda could be the better fit.
