What Are the Best Merchant of Record Platforms for Indian SaaS and Digital Product Sellers in 2026?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
- Published:
- Last modified:
Short answer
None of the merchant of record platforms covered here publish full pricing for Indian users, so they cannot be ranked by INR received. In alphabetical order: Dodo Payments, Lemon Squeezy, Paddle. The list covers platforms that state they act as merchant of record, collecting from buyers worldwide and handling sales tax, and that pay out to Indian sellers.
| Platform | Best for | INR on $10,000 |
|---|---|---|
| Dodo Payments | Indian founders selling SaaS and digital products worldwide | Merchant of record: USD payout, your Indian bank sets the INR rate |
| Lemon Squeezy | Software and digital product sellers wanting a merchant of record | Merchant of record: final INR depends on payout route and conversion |
| Paddle | Indian software and SaaS companies selling online worldwide | Merchant of record: USD payout, your Indian bank sets the INR rate |
What are the best merchant of record platforms for Indian SaaS and digital product sellers?
The list covers platforms that state they act as merchant of record, collecting from buyers worldwide and handling sales tax, and that pay out to Indian sellers. Also covered, without full published pricing: Dodo Payments, Lemon Squeezy, Paddle. The table shows each one's published charges, settlement and documents.
A low headline fee does not always mean the most money received, because the FX markup on conversion is often the larger cost.
Which merchant of record platforms rank highest for Indian SaaS and digital product sellers?
- Dodo Payments: Full pricing not published. 4% + 40c per card or wallet sale, +1.5% for cards and APMs outside the US, +0.5% for subscriptions, +3% for BNPL or PayPal, all calculated on the total including sales tax; ACH and SEPA direct debit 1.5% (capped $15 or EUR 15); India INR cards and UPI 4% + 15c (+international payment fees); payout fee $5 below $1,000, $25 for USD SWIFT payouts to non-US businesses.
- Lemon Squeezy: Full pricing not published. 5% + $0.50 per sale on the total order value including tax, +1.5% for transactions outside the US, +1.5% PayPal, +0.5% subscriptions; payout fee 1% (non-US bank) or 3% capped at $30 (non-US PayPal).
- Paddle: Full pricing not published. 5% + $0.50 per Paddle Checkout transaction; 3.5% for Paddle Invoicing paid by bank transfer (MSA updated 6 Oct 2026); custom pricing for high volume and bespoke pricing for products under $10; $15 per international bank transfer payout.
How do the best merchant of record platforms compare?
| Platform | Fee model | FX markup | Best for | INR on $10,000 |
|---|---|---|---|---|
| Dodo Payments | 4% + 40c + other fees; payout $5 below $1,000, $25 SWIFT | No INR conversion; Indian bank converts USD at its rate | Indian founders selling SaaS and digital products worldwide | Merchant of record: USD payout, your Indian bank sets the INR rate |
| Lemon Squeezy | 5% + $0.50 per sale, +1.5% non-US; payout 1% + other fees | Mid-market rates at checkout and bank payout; PayPal fees may apply | Software and digital product sellers wanting a merchant of record | Merchant of record: final INR depends on payout route and conversion |
| Paddle | 5% + $0.50 per checkout sale; $15 per international bank payout | Mid-market + 2%-3% on buyer currency; Indian bank converts to INR | Indian software and SaaS companies selling online worldwide | Merchant of record: USD payout, your Indian bank sets the INR rate |
INR figures use the XE mid-market rate for 4 Nov 2026 and fees checked on 30 Sept 2026, with 18% GST on fees where charged.
How do fees change with invoice size?
Flat fees cost a larger share of small invoices, while percentage fees grow with the invoice. The table shows each platform at $2,000, $5,000, $10,000.
| Platform and invoice | Fee | FX markup | GST | INR received | Cost | Best for |
|---|
What does each of the best merchant of record platforms offer?
1.Is Dodo Payments a good choice for Indian SaaS and digital product sellers?
Best for: Indian founders selling SaaS, AI tools, templates and other digital products to buyers worldwide
Dodo Payments is a merchant of record platform: it acts as the legal seller of a merchant's digital product, collects payment from the end customer, and handles sales tax, VAT and GST, billing and invoicing; merchants get dispute tools but chargeback liability stays with the merchant. Indian creators and businesses list their product, Dodo sells it to customers abroad, and the net revenue after tax and fees is paid out from a USD, GBP or EUR balance to the merchant's linked bank account. It does not provide local account details for receiving client bank transfers or invoice payments for services.
Key features
- Merchant of record: Dodo is the legal seller and handles customer-side sales tax, VAT and GST filing
- Hosted checkout with cards, wallets, UPI, RuPay, BNPL, ACH and SEPA direct debit
- Subscriptions, add-ons and usage-based billing
- Automatic invoice generation for every transaction
Pros
- Tax handling: Dodo states it calculates, collects and files sales tax, VAT and GST for sales it processes
- Individual sign-up: creators and sole proprietors can register as individuals with PAN-based KYC
- No fixed costs: no monthly fee on the standard plan, per the pricing page
- Payout frequency: bi-monthly by default, weekly on request for higher volumes, with a threshold adjustable down to $50
Cons
- Digital products only: the merchant acceptance policy targets SaaS, AI products, digital goods, templates, plugins and apps, not client services or invoices
- Per-sale fee: 4% + 40c plus 1.5% for international cards is charged on each sale, calculated on the total including sales tax
- No INR payouts: the INR payout wallet was discontinued, so payouts are sent in USD, GBP or EUR and converted by the receiving bank
- Payout fees: $5 on payouts under $1,000 and $25 on USD SWIFT payouts to non-US businesses (whether both apply to a small SWIFT payout is not stated), plus any receiving and intermediary bank charges
Verdict: full pricing not published; a weaker fit for freelancers and agencies paid by bank transfer for client services or invoices.
2.Is Lemon Squeezy a good choice for Indian SaaS and digital product sellers?
Best for: Indian sellers of software, SaaS and digital downloads who want a merchant of record to handle global sales tax
Lemon Squeezy is a US merchant of record for digital products and SaaS, acquired by Stripe in July 2024. It sells to the end customer, collects and remits sales tax and VAT, and pays the seller the net amount twice a month. Indian sellers can receive payouts to PayPal, or to an Indian bank account only if their Stripe account is pre-approved, since Stripe accepts new Indian accounts on an invite-only basis from May 2024.
Key features
- Merchant of record that handles payments, fraud and global sales tax for the seller
- Checkout, subscriptions, licence keys and digital downloads
- Buyers can see prices in many currencies (95 per the pricing page, 130 per the currencies help page), with PayPal among the included payment methods
- Twice-monthly payouts to a bank account or PayPal
Pros
- Tax handling: acts as merchant of record and covers sales tax and VAT within its fee
- Published pricing: platform and payout fees are listed in the help docs
- Bank FX at mid-market: non-USD bank payouts are converted at the mid-market rate at payout time
- No monthly fee: pricing is per transaction
Cons
- Indian bank payouts restricted: bank payouts require a Stripe account pre-approved under Stripe's invite-only policy for India; otherwise PayPal is the only option
- High total cost: a sale outside the US pays 6.5% + $0.50 on the tax-inclusive total before payout fees of 1% (bank) or 3% capped at $30 (PayPal)
- Digital products only: services of any kind (including marketing, design, web development and consulting) and physical goods are on the prohibited products list
- Platform in transition: its January 2026 update says Stripe is building Stripe Managed Payments and plans a migration path for Lemon Squeezy users
Verdict: full pricing not published; a weaker fit for freelancers and agencies invoicing foreign clients for services (services are a prohibited product category) or receiving direct bank transfers.
3.Is Paddle a good choice for Indian SaaS and digital product sellers?
Best for: Indian software and SaaS companies selling online to customers worldwide
Paddle is a merchant of record for software businesses: it sells the product to the end customer, collects payment and handles sales tax, then pays the seller a monthly payout. Indian software sellers receive this payout by wire transfer or Payoneer in a supported foreign currency such as USD, and their Indian bank converts it to INR.
Key features
- Merchant of record: Paddle sells to the customer and handles sales tax and VAT, including 18% GST on B2C sales to India
- Checkout, subscriptions, payments, tax compliance, fraud protection and reporting included in the transaction fee; invoicing (bank transfer) is priced at 3.5% in the MSA
- Monthly payouts by wire transfer or Payoneer with an adjustable threshold from $100 to $100,000
- Monthly statements, reverse invoices and a remittance advice for each payout
Pros
- Tax handling: Paddle collects and remits sales tax and VAT in countries it lists, so the seller does not register abroad
- Single checkout fee: 5% + $0.50 with no monthly, migration or lock-in fees
- No Paddle payout fee: Paddle states it will not add any fees beyond the Paddle fee on payouts, though SWIFT wire, intermediary bank, conversion and Payoneer charges can apply
- Paperwork: reverse invoices and remittance advice are generated each month
Cons
- Software only: the Acceptable Use Policy excludes human services not related to a software offering, such as pure consulting, coaching, IT or design services
- No INR payout: funds arrive in a foreign currency and the Indian bank sets the INR rate and its own charges
- Monthly cycle: payouts are made once a month and only above the threshold
- Wire costs: a $15 (or EUR/GBP 15) charge applies to each international bank transfer payout, plus any intermediary and receiving bank charges
Verdict: full pricing not published; a weaker fit for freelancers, agencies and consultants selling services rather than software.
How did we evaluate these platforms?
- Landed cost: The INR that reaches an Indian bank after the fee, FX markup and GST on the fee, at the XE mid-market rate. This decides the order.
- Compliance fit: Whether the platform issues FIRA or FIRC for each payment, as it states on its own website.
- Reliability: Settlement time to India as the platform states it.
- Transparency: Whether full pricing for Indian users is published. Platforms without it are listed after the ranked ones.
The full method is on the methodology page.
What compliance do Indian SaaS and digital product sellers need to handle?
- FIRA or FIRC: Proof that export money arrived through banking channels, used for GST refunds and income tax records. See what a FIRA is.
- e-BRC: DGFT's electronic realisation certificate, generated from bank data and used for export benefits. See FIRC vs FIRA vs e-BRC.
- RBI PA-CB: RBI authorises payment aggregators for cross-border payments. Check RBI's published list before relying on a platform's claim.
- Realisation period: Export proceeds must be realised within the period RBI sets. See the export realisation period.
How did we verify this?
Fees, FIRA terms and RBI status were checked on each platform's own pages on 30 Sept 2026. INR figures use the XE mid-market rate for 4 Nov 2026.
- Dodo Payments Pricing, Domestic (USA) cards and wallets 4% + 40c; International +1.5%; BNPL +3%; PayPal +3%; Domestic (India - INR) 4% + 15c +international payment fees; ACH 1.5% capped at $15, SEPA 1.5% capped at EUR 15, replaces the card fee; bank push transfers priced as standard transactions; Payouts free, fee of $5 if payout <$1000, standard FX applicable on non-USD settlements; USD SWIFT payouts $25; Adaptive Currency 2-4% FX fee charged to customer (checked 7 Oct 2026)
- Dodo Payments Docs: Payouts Process, Bi-monthly payout dates 18th and 4th, weekly 11th/18th/25th/4th, monthly 11th; your bank converts the transfer on arrival at its own exchange rate; USD default threshold $100, lowest $50; INR native wallet discontinued; International SWIFT wire: USD SWIFT payout fee, deducted from the payout; Local bank transfer: none; payout fee is $5 for payouts below $1,000 (checked 7 Oct 2026)
- Dodo Payments Docs: Balances, Three native wallets: USD, GBP, EUR (checked 7 Oct 2026)
- Dodo Payments Docs: FAQ, Q31 GST for Indian merchants; Q35 PAN or GST; Q84 USD, GBP and EUR payout currencies, INR no longer a native payout wallet; Q99 bank and intermediary charges; Q100 payouts usually take 1-2 business days (checked 7 Oct 2026)
- Dodo Payments Docs: Account Verification (checked 6 Oct 2026)
- Dodo Payments Docs: Merchant of Record Introduction, Transaction fees are calculated on the total amount including tax, using standard pricing (example: 4% of $230, 1.5% international, $0.40 fixed) (checked 7 Oct 2026)
- Dodo Payments Docs: Merchant Acceptance Policy (checked 6 Oct 2026)
- Dodo Payments Docs: Accepted Countries and Territories (checked 6 Oct 2026)
- Dodo Payments Terms of Use, Preamble naming group companies (checked 6 Oct 2026)
- Lemon Squeezy pricing, ecommerce 5% + 50c; $0/m; support for up 95 different currencies; 16 different payment methods, including PayPal (elsewhere on the page: up to 21 payment methods) (checked 7 Oct 2026)
- Lemon Squeezy fees, The platform fee is calculated on the total order value; +1.5% for international (outside of the US) transactions; +1.5% for PayPal transactions; +0.5% for subscription payments; Payouts via Stripe 1% per payout for bank accounts outside the US; Payouts via PayPal 3% capped at $30 per payout for accounts outside the US (checked 7 Oct 2026)
- Lemon Squeezy getting paid, Payouts created 1st and 15th, paid 14th and 28th, 13-day hold, $50 minimum, 1-5 days, mid-market conversion (checked 7 Oct 2026)
- Lemon Squeezy currencies, Sell products in 130 currencies; processes all transactions in US dollars using real-time, mid-market exchange rates, no additional fees for this conversion; payouts always made in USD, converted to a selected bank payout currency at the mid-market rate (checked 7 Oct 2026)
- Lemon Squeezy prohibited products, Services of any kind (including marketing, design, web development, consulting or other related services); Physical goods of any kind (checked 7 Oct 2026)
- Lemon Squeezy supported countries, India*: From May 2024, Stripe only accepts new accounts from India on an invite-only basis... If you are a merchant from India without an approved Stripe account, you will have to use PayPal for payouts (checked 7 Oct 2026)
- Lemon Squeezy verify your identity (checked 6 Oct 2026)
- Lemon Squeezy refunds and chargebacks (checked 6 Oct 2026)
- Lemon Squeezy 2026 update (checked 6 Oct 2026)
- Lemon Squeezy home (checked 6 Oct 2026)
- Lemon Squeezy blog: Stripe acquires Lemon Squeezy (checked 6 Oct 2026)
- Paddle pricing, 5% + 50c per Checkout transaction; if you're selling product with under 10$ value you can contact us for bespoke pricing (checked 7 Oct 2026)
- Paddle Master Services Agreement (last updated 6 October 2026), 3.2: Paddle Checkout 5% of SRP plus $0.50; Paddle Invoicing (where payment is made by bank transfer) 3.5% of SRP; 3.3 Checkout Recovery 10%; 7.1: Open Exchange Rates mid-market plus 2% (USD/EUR/GBP), 2.5% (CZK, DKK, NOK, THB), 3% other; 7.5: a charge of $15 for each international bank transfer, conversion margin of up to 1.5%; Payment Currency USD, EUR, GBP, CAD or AUD (checked 7 Oct 2026)
- Can I be paid in my local currency?, 13 payout currencies listed (no INR); if your local currency isn't supported your bank will convert the payout (checked 7 Oct 2026)
- Is there a fee taken for payouts?, Paddle will not add any fees beyond the Paddle fee on payouts; transfers sent internationally via SWIFT will incur a wire fee of $/EUR/GBP 15; conversion margin of up to 1.5% if payout currency differs from Balance Currency (checked 7 Oct 2026)
- When and how do I get paid? (checked 6 Oct 2026)
- Should I charge Paddle VAT/tax for payouts? (checked 6 Oct 2026)
- What statements will I receive? (checked 6 Oct 2026)
- Which countries are supported by Paddle? (checked 6 Oct 2026)
- What am I not allowed to sell on Paddle? (checked 6 Oct 2026)
- Business identification (checked 6 Oct 2026)
- Identity verification (checked 6 Oct 2026)
- Domain review (checked 6 Oct 2026)
- Which countries does Paddle charge sales tax or VAT for?, India | 18% | GST | B2C (checked 6 Oct 2026)
Frequently asked questions
What is the best option for indian saas and digital product sellers right now?
None of the merchant of record platforms compared publish full pricing for Indian users, so they are listed alphabetically. Compare their published fees, FIRA terms and RBI status on this page before choosing. Check the platform's own pricing page before relying on these figures.
How are these merchant of record platforms ranked?
Each platform's published fee, FX markup and GST on the fee are applied to the XE mid-market rate, and platforms are ordered by the INR that reaches an Indian bank on a $10,000 invoice. No platform is placed by hand.
Which of these merchant of record platforms give a FIRA for every payment?
FIRA terms differ by platform. Each platform's profile on this page shows what it states about FIRA or FIRC. A FIRA is used as proof of export for GST refunds and income tax records, so confirm it is issued for every payment.
Do I need an RBI-authorised platform to receive export payments?
Export proceeds must come in through banking channels, and RBI authorises payment aggregators for cross-border payments. Each platform's RBI status is listed as the platform or RBI states it. Check RBI's published list before relying on any platform's own claim.
Is a bank wire cheaper than these merchant of record platforms?
A bank wire often carries an intermediary charge, a receiving bank fee and a wider conversion margin than the mid-market rate. Compare the INR your bank actually credits on a past payment with the INR table on this page to see the difference for your invoices.
Can I use more than one platform at the same time?
Yes. Many exporters use one platform for large invoices and another for small or card payments. Each platform issues its own FIRA or FIRC records, so keep them together for GST and income tax filing and reconcile them with your invoices.
How often is this ranking updated?
The ranking recalculates whenever the reference rate changes, and platform fees are re-checked when a pricing change is found or reported. The page shows the date fees were checked, currently 30 Sept 2026, and the date of the reference rate used.