Paystack vs Paddle
Paystack or Paddle for your paid community?
Both work with Ubunya: members who pay are let in automatically, and lose access when their membership ends. Here's how they differ on fees, payment methods, tax and payouts.
The short answer
Choose Paystack if
- Registered businesses in Kenya, Nigeria, Ghana or South Africa that want cards and mobile money in one place.
- You'd rather be the seller yourself and keep tax in your own hands.
- Your members pay with M-Pesa.
Choose Paddle if
- Established software or digital businesses that want tax handled and can wait for monthly payouts.
- You want Paddle to handle sales tax and VAT as the merchant of record.
Side by side
| Paystack | Paddle | |
|---|---|---|
| Handles sales tax and VAT (merchant of record) | No, you do | Yes |
| Card fee | 2.9% local cards, 3.8% international cards, 1.5% M-Pesa (Kenya). Kenya rates shown; other countries have their own rates. Transfers out cost KES 20–350 depending on amount and destination. | 5% + 50¢. Custom pricing for products under $10. Payouts are free for most countries; some pay a $15 SWIFT fee. |
| Members can pay with | cards, M-Pesa, Airtel Money, mobile money, Apple Pay, bank transfer, USSD, Pesalink, EFT | cards, PayPal, Apple Pay, Google Pay, bank transfer, Alipay, WeChat Pay, UPI, Pix, iDEAL, BLIK |
| Recurring billing | Subscriptions by card (and direct debit in Nigeria); M-Pesa and mobile money can't auto-renew. | Subscriptions by card, PayPal and wallets. |
| Who can sign up as a seller | Nigeria, Ghana, Kenya, South Africa, Côte d'Ivoire, Egypt, Rwanda | Most countries except sanctioned ones |
| Payouts | Local bank account or M-Pesa (Kenya), usually after 2 working days | Wire transfer or Payoneer, monthly, $100 minimum |
| Free test mode | Yes | Yes |
| Connecting it to Ubunya | Paste your secret key, then paste our webhook URL into Paystack. Paystack's signature is checked with your key. | Paste an API key and client-side token. We add the webhook for you. |
| Prices on your community | Your Paystack plans. Each yearly plan can also be paid once with M-Pesa or mobile money. | Your Paddle prices, subscription or one-time. |
| Renewals in Ubunya | Cards renew automatically. Mobile money pays one year at a time. | Renews automatically. |
| Members' billing page | Paystack's subscription page: change card, cancel. | Paddle's customer portal. |
From Paystack's and Paddle's own websites, checked November 2026. Prices change; check theirs before you sign up. Compare all 11 providers.
Questions
Which handles tax, Paystack or Paddle?+
Paddle is a merchant of record and handles VAT and sales tax for you; with Paystack you're the seller and tax is yours to handle.
Can members pay with M-Pesa on Paystack or Paddle?+
Paystack: yes. Paddle: not that we could find on its website.
Can I use Paystack or Paddle with Ubunya?+
Yes, both. Connect your own account under Manage → Payments. Paystack: Paste your secret key, then paste our webhook URL into Paystack. Paystack's signature is checked with your key. Paddle: Paste an API key and client-side token. We add the webhook for you.
What happens when a member stops paying?+
Their access stays until the end of what they paid for, plus the grace days you set (three by default). Then the community closes to them. Staff never lose access.
More comparisons
Charge for your community with the account you already have
Connect it under Manage → Payments. Paying members are let in automatically.