Stripe, Merchant of Record, or IAP: How to Choose the Right Payments Stack
Developers building monetized apps face three core payment options: a processor like Stripe, a Merchant of Record (MOR) such as Paddle or Lemon Squeezy, or app store billing via Apple and Google. The most critical factor is not fees but legal seller identity, which determines who handles taxes, chargebacks, and refunds. Stripe offers the lowest fees (~3%) and full control but places all tax compliance and dispute management on the developer. MOR services take a higher cut (~5% plus fees) but absorb global tax obligations and chargebacks entirely. For native mobile apps selling digital features, in-app purchases are a platform requirement, not a choice, making a complementary web checkout a practical cost-saving strategy.
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