Stripe vs Lemon Squeezy for Solo SaaS (2025 Guide)

Do not index

If you want the simplest path to selling globally without dealing with VAT/GST registrations, pick a Merchant of Record (MoR) solution like Lemon Squeezy. If you need maximum flexibility, deeper APIs, or plan to expand into a broader payments stack, pick Stripe (Stripe Billing + Stripe Tax). Keep in mind Stripe has announced a Managed Payments/MoR offering that may change this calculus as it rolls out.

Want a step-by-step walkthrough for both stacks (Next.js + subscriptions + launch)? Learn it inside CodeFast and build your first SaaS fast: Start Here

What founders really want (and what each stack is best at)

You want:

Global sales, minimal admin.

Recurring revenue that “just works” (trials, coupons, upgrades/downgrades).

A clean checkout that doesn’t tank conversion.

A quick path to first revenue, not months of integration.

Room to grow once you have traction.

In practice:

Lemon Squeezy takes on tax + compliance (MoR), offers a dead-simple hosted checkout, and includes nice-to-haves like tax-inclusive pricing, dunning, and affiliates.

Stripe gives you industrial-strength primitives (Billing, Checkout, Payment Links, Customer Portal, webhooks, dozens of payment methods) and a massive ecosystem. You own the stack—and the responsibility.

If you’re shipping your first SaaS and your audience is international (especially EU B2C), Lemon Squeezy is often the fastest, least-stressful start. If you’re more technical, want deep customization, or foresee complex pricing/usage patterns, Stripe is hard to beat.

Founder-first decision table

Skim this, circle what matters to you, and you’ll know your answer.

Factor	Lemon Squeezy (MoR)	Stripe (Processor + Billing/Tax)
Tax & compliance	MoR handles VAT/GST collection and remittance globally. You sell “through” them—less admin on your side.	Stripe Tax automates calculation/collection, but you remain the seller of record and responsible for filings/compliance.
Checkout speed	Prebuilt hosted checkout that’s conversion-oriented; tax-inclusive pricing keeps totals transparent.	Multiple options (Payment Links, Checkout, Elements) with extensive customization; more choices = more decisions.
Subscriptions	Subscriptions out of the box (plans, trials, coupons, proration, failed payment recovery).	Stripe Billing is extremely capable (subscriptions, metered/usage, customer portal, revenue automations).
Affiliates & licensing	Built-in affiliates and software licensing are native.	Affiliates/licensing via third-party tools or custom build.
Payouts	Simple payouts; MoR sits between you and the customer, so chargebacks/fraud are handled by platform.	Direct merchant relationship; you manage disputes/chargebacks and related ops (with Stripe’s tooling).
Pricing model	Platform fee model (no monthly minimums); MoR fee typically includes processing + compliance.	Processing fees + optional add-ons (Billing, Tax). Optimizable at scale; varies by payment method/region.
Dev complexity	Minimal integration for MVP—API if/when you need it.	Deeper integration, richer APIs, more flexibility; bigger surface area to maintain.
Edge use cases	Great for digital goods/SaaS worldwide without becoming a tax expert.	Best when you need granular control, many payment methods, or plan to expand the stack later (invoicing, terminals, marketplaces).
Future-proof	MoR simplicity remains compelling for indie SaaS.	Stripe announced a Managed Payments (MoR) track—worth watching if you want full Stripe but MoR convenience.

How to decide in 10 seconds:

Check where your customers are. Lots of EU B2C? Go MoR.

Check your app complexity. Need usage-based billing, fine-grained invoicing, or custom flows? Stripe.

Check your time budget. Need revenue this week? MoR is the least overhead.

“Fastest to first dollar” setups (copy this strategy)

If you choose Lemon Squeezy

Create products and plans (monthly/annual, optional trials).

Use the hosted checkout first. Don’t custom-build until you’ve earned $1,000+ MRR.

Add coupons for early testers and enable dunning (failed-payment recovery).

Implement webhooks to grant/revoke access on subscription events (created, renewed, canceled).

Turn on tax-inclusive pricing for EU audiences; buyers love transparent totals.

Add affiliates later if your audience buys through creators.

What this gets you: global sales with minimal overhead, no tax filings in dozens of jurisdictions, and a clean, trustworthy checkout—fast.

If you choose Stripe

Start with Stripe Checkout + Billing (not raw Elements) for speed.

Enable the Customer Portal so users can update cards, switch plans, or download invoices without emailing you.

Use Stripe Tax for automatic calculation/collection where required.

Wire up webhooks: checkout.session.completed, invoice.payment_succeeded, customer.subscription.updated, etc.

Add trials & coupons carefully; define proration rules and test plan upgrades/downgrades.

Instrument retries & dunning (Billing has built-in recovery automations).

What this gets you: a scalable, flexible billing foundation with a lot of room for customization once your product-market fit solidifies.

Want both flows taught step-by-step (Next.js, auth, DB, emails, and subscriptions)? Jump into CodeFast: Start Here

Implementation notes (Next.js + MongoDB + emails)

Minimal user model:

userId

email

subscriptionStatus (active, trialing, canceled, past_due)

provider (stripe | lemonsqueezy)

planId and currentPeriodEnd

Auth first, billing second.

Ship magic link and Google OAuth (lowest friction), then gate your paid routes behind subscriptionStatus === 'active'.

Webhook handler checklist:

Verify signatures.

Idempotency keys (store processed event IDs).

Map events → simple domain actions:

trial started → tag user, set trialing
payment succeeded → set active, extend currentPeriodEnd
payment failed / canceled → set past_due or canceled, restrict access

Email touchpoints with Resend (or similar):

Welcome + verification

Trial starting/ending

Payment succeeded/failed

Card expiring (Stripe) or payment method update needed

Logs or it didn’t happen:

Persist raw event payloads for 30–60 days so you can replay/inspect when something breaks.

Pricing & packaging: keep it simple until $3k MRR

Two tiers max at launch (Starter, Pro).

Annual plan with 2 months free (or 15–20% off).

Free trial only if your value needs hands-on time; otherwise a 14-day refund promise is simpler.

One hero feature per tier so buyers instantly “get” the difference.

Inline FAQ directly under the pricing table (objections → answers).

You can always expand your billing logic later—usage-based, seats, add-ons—but the fastest way to learn is to bill monthly/annually with clear limits and upgrade prompts.

Common pitfalls (and how to dodge them)

VAT/GST confusion. If you’re not ready to be the seller of record worldwide, use an MoR. If you are, make sure your tax settings, evidence, and filings are dialed in.

Unclear entitlements. Tie product features to subscription status in code, not just in your head.

Retry logic missing. Turn on dunning and smart retries from day one; failed payments are revenue leaks.

No customer self-serve. Give users a portal (Stripe) or simple email+link flows (Lemon Squeezy) so they don’t need your help desk to update a card.

Premature custom UI. Hosted checkout is fine for your first dollars. Customize after you prove demand.

Silence around taxes on the pricing page. Add a tiny note: “Taxes/VAT handled at checkout” or “Prices include taxes where required.”

Scenario playbook: pick in 30 seconds

You’re EU-heavy B2C, tiny team, zero tax appetite → Lemon Squeezy.

You’re US-first B2B, dev-savvy, want deep control → Stripe.

You plan affiliates + creators → Lemon Squeezy gets you there faster.

You need usage-based billing or complex invoices → Stripe Billing.

You already use Stripe elsewhere → Stay in Stripe; compound your setup knowledge.

You’re not sure and want to ship this weekend → Lemon Squeezy now; you can migrate later when the pain is real.

How this maps to CodeFast (so you can ship faster)

The CodeFast course teaches both subscription flows (Stripe and Lemon Squeezy) inside a complete app build: Next.js frontend, MongoDB, auth (magic link + Google), transactional email, SEO, and launch. It’s built for founders, not job seekers. If you want a pragmatic, copy-what-works walkthrough, start here: Join CodeFast

FAQ

Is Lemon Squeezy okay for B2B?

Yes. Many B2B SaaS start with an MoR to skip tax admin while they find fit. If you need custom terms, invoices, or procurement hoops, you may grow into Stripe later.

Can I migrate from Lemon Squeezy to Stripe (or vice versa)?

Yes, but plan it. You’ll port customers by issuing new checkout links and/or capturing payment methods again. Keep both systems running for a few cycles to catch stragglers.

Will Stripe’s new MoR option make Lemon Squeezy obsolete?

Unlikely. It will give founders more choice, but trade-offs will still exist (pricing, availability, ecosystem fit). Pick based on your next 12 months, not hypotheticals.

What about fees?

Expect MoR platforms to charge a higher all-in fee per transaction in exchange for handling tax and compliance; Stripe’s pricing is modular (processing + optional add-ons). Choose the model that saves you time now—optimize fees later when volume justifies it.

Which stack converts better?

Both can convert well. Your copy, price, and offer clarity matter more than the logo on the checkout. Use hosted checkout, keep fields minimal, and add social proof.

Do I need a free trial?

Not always. If your value is immediate, use a money-back guarantee. If your app requires setup or data to shine, a 7–14 day trial helps.

Wrap-up

If you want “sell worldwide with minimal fuss,” Lemon Squeezy is the clean start.

If you want “own the billing stack with industrial strength,” Stripe is your engine.

If you want to build the whole thing, end-to-end, in weeks not months, use CodeFast and follow the same path dozens of students are using to ship and charge: Start Now