Polar vs Stripe for indie SaaS: which one to pick

Stripe is the de facto standard in online payments. But in the last two years, Polar has gained ground among indie hackers and small SaaS. The question: which one to go with when starting? This comparison goes through the real differences without marketing nuances. ## What both do at the basic level Either one gives you: - Recurring subscriptions (monthly, annual) - One-time purchases - Webhooks to know when someone pays, cancels, or fails - Dashboard to see revenue - Good documentation If you only need that, both cover it. The difference is in the details. ## Fees ### Stripe - 1.5% + €0.25 in Europe for standard European transactions - 2.9% + $0.30 in the US - Extra fees for currency conversion, international transactions, etc. ### Polar - 4% + $0.40 per transaction - VAT and tax compliance **included in the fee** At first glance Stripe is cheaper. But there's an important detail: ## Tax compliance: the deciding factor If you sell in Europe, you have to charge VAT based on the buyer's country. In Stripe you handle this yourself: configure Stripe Tax (extra 4%), or do it manually with your accountant. Polar is **Merchant of Record**. That means they collect VAT, declare it, and pay it to the authorities. You receive clean money. For an indie hacker selling in Europe, this is the difference between: - **Stripe**: managing VAT with your accountant every quarter. Different rules per country. Mind OSS and MOSS. - **Polar**: you charge and that's it. If your volume is low (under €10,000/year), Polar's extra cost (1-2% effective after compliance) **offsets the accounting savings**. If your volume is high, Stripe's savings show. ## Geography ### Stripe - Available in 47 countries (seller side) - Accepts payments in 135+ currencies - Works almost anywhere ### Polar - Available as a seller in fewer countries - Accepts payments globally If you sell from a country where Stripe doesn't operate, Polar might be your only option. Check first. ## Tech integration ### Stripe Mature API, thousands of tutorials, SDKs in every language. Examples for everything. ### Polar Simpler API, good official TypeScript SDK. Clear documentation but less volume. In real Next.js code: ```ts // Stripe import Stripe from 'stripe'; const stripe = new Stripe(process.env.STRIPE_SECRET_KEY!); const session = await stripe.checkout.sessions.create({ /* ... */ }); // Polar import { Polar } from '@polar-sh/sdk'; const polar = new Polar({ accessToken: process.env.POLAR_ACCESS_TOKEN! }); const session = await polar.checkouts.create({ /* ... */ }); ``` Both are easy to integrate. The operational difference is minimal. ## Webhooks Both have them. Polar has cleaner types, Stripe has more events but also more complexity. Tech tie. ## Dashboard ### Stripe More complete, more options, steeper learning curve. ### Polar Cleaner, fewer features, easier to use. ## When to pick each ### Pick Polar if: - You sell to Europe and don't want VAT headaches - Your monthly volume is < €5,000 - You want simplicity over features - You live in a country where Stripe is problematic ### Pick Stripe if: - Your monthly volume is > €10,000 - You need advanced features (Stripe Connect, marketplaces, custom invoicing) - You sell mainly to the US where VAT doesn't apply - You want the most mature API on the market ### The middle ground Many modern boilerplates (including CREA.MBA) **support both**. You start with Polar (no VAT hassle) and migrate to Stripe when you grow. The amount of code you change is minimal if the integration is done right. ## Bottom line Stripe wins on maturity, high volume, and advanced features. Polar wins on simplicity, European compliance, and low volume. If you're starting an indie SaaS and sell to Europe, Polar removes a major headache. If you project high volume fast, Stripe pays off from the start. You're not wrong with either. But the quick decision is: **Polar to start, Stripe when volume justifies it.**