Polar vs Lemon Squeezy
Two developer-facing merchants of record at the same headline 5% + 50¢ — what separates them, and where Polar becomes cheaper.
| Service | Plan at 10,000 users | 1,000 users | 10,000 users | 100,000 users |
|---|---|---|---|---|
| PolarMerchant of record built for developers, with paid tiers that cut the rate. | Pro4 Aug 2026 | $32 | $270 | $2,420 |
| Lemon SqueezyMerchant of record for digital products, now owned by Stripe. | Standard4 Aug 2026 | $30 | $300 | $3,000 |
| CreemMerchant of record at a flat 3.9%, aimed squarely at indie SaaS. | Standard4 Aug 2026 | $24 | $236 | $2,360 |
| Dodo PaymentsMerchant of record covering 220+ countries at 4% + 40¢. | Standard4 Aug 2026 | $26 | $258 | $2,580 |
Change any of those assumptions in the calculator.
Where this actually starts
Both are merchants of record aimed at developers selling software, and both start at 5% + 50¢. On the headline rate there is nothing to choose between them.
The differences are ownership, and what happens to the rate as you grow.
What actually separates them
Lemon Squeezy is owned by Stripe
Acquired in 2024. It still runs and still charges 5% + 50¢. But if you were choosing a merchant of record partly to avoid depending on Stripe, that reasoning does not survive here.
Polar’s rate falls, Lemon Squeezy’s does not
Polar sells paid tiers that cut the percentage: $20/mo for 3.8% + 40¢, $100/mo for 3.6% + 35¢, $400/mo for 3.4% + 30¢. Polar puts the break-even for the first at roughly $1,379/mo in sales. Lemon Squeezy is a single flat rate at any volume, so above a few thousand a month Polar is simply cheaper.
Both add for international cards
Polar publishes +1.5% on non-US cards and $15 per dispute regardless of outcome. Read the surcharges, not the headline — for a product sold globally they are a meaningful part of the real rate, which is why the calculator prices them as a separate line.
The cheaper options in the table
Creem at a flat 3.9% + 40¢ and Dodo at 4% + 40¢ both undercut the 5% starting rate outright. They are younger and have less of a track record, which for something standing between you and your revenue is a real consideration rather than a footnote.
Which to pick
| If | Then |
|---|---|
| Under roughly $1,400/mo in sales | Either, or Creem if you want the lowest published flat rate. |
| Above that and growing | Polar — the paid tiers make it structurally cheaper as you scale. |
| You want the longest track record | Paddle, at a higher rate. |
Questions
Is a newer provider risky?
It is a real consideration. A merchant of record holds your revenue between the customer paying and you being paid, so its solvency and payout reliability matter more than a percentage point. Weigh the saving against how long the company has been doing this.
