Alternatives
Lemon Squeezy is 5% + 50¢, which is already one of the lower rates in this market, so people rarely leave over the headline number alone. They leave over the 50¢ if their products are cheap, or because they want off a percentage entirely, or because of uncertainty about where the platform is heading. Each of those has a different answer, and one of them has a cost most comparison tables leave out.
Lemon Squeezy is a merchant of record. Legally they are the seller. EU VAT registration, rate lookups per country, filings, invoices and the liability if any of it is wrong are theirs, not yours.
Every self-hosted option below hands all of that back to you. That is not a footnote — for a seller with EU customers it is the single largest hidden line item in leaving, and it does not show up as a percentage anywhere.
Do this arithmetic before you shop. Take your annual revenue and multiply by 5%. If that number is smaller than what an accountant would charge you to handle EU VAT registration and quarterly filings, the fee is not your problem and switching will cost you money. For a lot of sellers under roughly $50,000 a year, that is exactly the situation.
The flat per-transaction component is invisible at high prices and brutal at low ones. Same 5% + 50¢ fee, very different effective rates:
| Your price | 5% | + 50¢ | Effective rate |
|---|---|---|---|
| $5 | $0.25 | $0.75 total | 15.0% |
| $15 | $0.75 | $1.25 total | 8.3% |
| $49 | $2.45 | $2.95 total | 6.0% |
| $199 | $9.95 | $10.45 total | 5.3% |
| Option | Fee | Worth knowing |
|---|---|---|
| Paddle | 5% + 50¢ | Same headline rate. Products under $10, or needing invoicing, are on custom pricing — ask first if that is you. |
| Freemius | ~7% for WordPress products | More expensive, but it is also the licensing server and the update channel. For plugin sellers that is two problems solved, not one. |
| Gumroad | 10% + 50¢ | Double the rate. Only worth it for the Discover audience, which Lemon Squeezy has no equivalent of. |
| Option | Cost | What it covers | You take on |
|---|---|---|---|
| SureCart | $199/yr flat, or $0 + 2.9% | Store and checkout in WordPress | VAT, filings, invoices |
| Easy Digital Downloads | Free core; $599/yr for licensing | Store, and licensing on the Professional Pass | VAT, filings, invoices |
| LicensorPro | $199–$799/yr flat · Solo $99.50 with FOUNDERS50 | Licence keys and updates only | VAT, and you bring your own checkout |
You do not have to choose. Keep a merchant of record in front for the tax, and put a flat-fee licensing server behind it for the keys and updates. You pay 5% on revenue and a fixed annual fee, and the licence data and customer relationship live on your own infrastructure rather than the platform's.
That is worth knowing because it is also the answer to the third reason people leave — platform risk. If your worry is that the checkout provider changes direction, the fix is not to leave it. It is to stop letting it be the only place your licence data exists, so that switching later is a checkout change rather than a migration.
LicensorPro is one of the alternatives above, and the one we make, so here is the full side-by-side. Lemon Squeezy's column comes from its own public pages, read 17 September 2026; we didn't sign up to test it. Ours is checked against the LicensorPro 2.5.1 build customers download. The longer write-up is on the Lemon Squeezy comparison page.
✓ included✓ Pro+ only from that tier up~ partly (catch noted)✗ not availablenot tested hands-on paid screen we did not buy
| Feature | Lemon Squeezy | LicensorPro |
|---|---|---|
| Merchant of record (sales tax and VAT) | ✓ Yes | No; can use Lemon Squeezy or another MoR as its gateway |
| Cost | 5% + 50¢ per transaction; some payments carry extra fees | $199 to $799 a year, flat, plus your gateway |
| Where licence and customer data lives | Lemon Squeezy's platform | Your own server and database |
| OwnershipLemon Squeezy's January 2026 update says its goal is an easy migration path to Stripe Managed Payments | Stripe (acquired 2024) | Independent; you run the software |
| Feature | Lemon Squeezy | LicensorPro |
|---|---|---|
| Licence keys with length and activation limit | ✓ Yes | ✓ Yes |
| API to activate, validate and deactivate | ✓ Yes | ✓ Yes |
| WordPress plugin and theme updates | Via their WordPress integration | Built in, with a WordPress SDK |
| Release channels and staged rollouts | not tested hands-on | Rollouts on Solo; beta, RC, dev channels on Studio |
| Signed licence responses checked by the SDK | not tested hands-on | ✓ Yes |
| SDKs outside WordPress | License API | PHP, Python, Java, .NET and JS |
| Dev and staging sites that don't use a seat | not tested hands-on | ✓ Yes |
| Keys survive a change of payment provider | n/a | ✓ Yes |
| Feature | Lemon Squeezy | LicensorPro |
|---|---|---|
| Checkout | Hosted, overlay and store | Through 19 gateway drivers, Lemon Squeezy included |
| Subscriptions, trials, upgrades and downgrades | ✓ Yes | Trials on Stripe and PayPal; prorated plan changes on Stripe and Polar |
| Discount codes and bundles | ✓ Yes | Codes Solo; bundles Studio |
| Affiliates | ✓ Yes | Studio |
| Customer portal | ✓ Yes | ✓ Yes |
| Abandoned cart and failed payment recovery | ✓ Yes | ✓ Yes |
| Usage-based billing, pay what you want, lead magnets | ✓ Yes | ✗ No |
| Fraud protection | AI fraud protection | Blocklist; the gateway's own tools |
| Email marketing | Built in; free to 500 subscribers | Renewal reminders and transactional email |
| Revenue reports | MRR, refunds, average order value | Revenue, MRR, churn, LTV, ARPU, conversion, refund rate |
These five pages cover the same ground for the other platforms plugin authors actually leave. The honest answer differs by vendor, so they do not all reach the same conclusion.
5% plus 50 cents per transaction on ecommerce, with no monthly charge for those features. Because of the flat 50 cents the effective rate depends heavily on your price: about 6% on a $49 product, but 15% on a $5 one. Checked September 2026.
On fee alone, a flat-priced self-hosted setup: SureCart at $199 a year, or a licensing server such as LicensorPro at $199 a year with your own checkout. But both make you the merchant of record, so add the cost of handling EU VAT yourself before calling them cheaper.
They are the closest like-for-like: both are merchants of record at 5% + 50 cents. Paddle aims further up-market and puts products under $10, or sellers needing invoicing, on custom pricing. If your reason for moving is the fee, note that the headline rate is identical.
Only by moving to another merchant of record, such as Paddle, Freemius or Gumroad. Every self-hosted option makes you the legal seller, which means EU VAT registration, per-country rates, filings and the liability all become yours. No option removes the percentage and keeps the tax handled.
Not entirely. A common setup is a merchant of record in front for the checkout and tax, with a flat-fee licensing server behind it for keys and updates. You still pay the percentage on revenue, but the licence data and customer relationship stay on your own infrastructure, which also makes any future switch a checkout change rather than a migration.
They generally do not transfer. The payment mandate belongs to the merchant of record, so recurring customers have to re-subscribe on the new platform and some will not. This is the single biggest cost of leaving any merchant of record, and it is worth modelling before you commit.
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