Payments & Invoicing
Getting paid should be the easy part, but fee structures, payout timing, and dispute handling vary enough between processors to matter at solo-founder margins. This shortlist covers the realistic options depending on whether you're billing clients, selling a digital product, or taking payment in person.
1. Stripe
Best for developers & SaaSBest for: subscription billing, SaaS, and anyone who wants API-level control
Stripe is the default for a reason: the API and dashboard are the best-documented in the industry, and Stripe Invoicing/Billing cover recurring revenue without needing a separate subscription-management tool.
Strengths
- Best-in-class documentation and API if you (or a contractor) will write any custom checkout logic
- Native subscription billing, invoicing, and tax calculation (Stripe Tax) in one dashboard
- Broad global card and payout support
Watch out for
- No-code invoicing is more capable than PayPal's but less turnkey for a total beginner
- Standard 2.9% + 30¢ card rate — competitive, not cheapest, for high-volume simple sales
2. PayPal
Best for buyer trustBest for: founders selling to consumers who already trust the PayPal button
PayPal's real advantage isn't the dashboard — it's that a huge share of online buyers already have an account and trust the checkout flow, which can measurably reduce cart abandonment for consumer sales.
Strengths
- Widest buyer recognition and trust of any option here, which can lift conversion
- Simple invoicing for one-off client billing without any setup
- No monthly fee — pay only per transaction
Watch out for
- Historically more buyer-favored dispute resolution, which can feel risky for service businesses
- Less flexible for recurring/subscription billing than Stripe
3. Square
Best for in-person + onlineBest for: founders who take payment in person (markets, pop-ups, services) as well as online
Square is the strongest option here if any part of your business happens face-to-face — the hardware, POS software, and online invoicing all share one back end instead of stitching two systems together.
Strengths
- Best-in-class in-person card reader hardware and POS if you ever sell at events or in a shop
- Flat, transparent per-transaction pricing with no monthly fee on the free tier
- Invoicing, online store, and in-person payments share one dashboard and one payout schedule
Watch out for
- Online-only checkout and API flexibility lag behind Stripe for a pure SaaS/subscription business
- Account holds/reviews for unusual transaction patterns are a known friction point
4. Wave
Best free invoicingBest for: service businesses that mainly need to send professional invoices, not run a checkout
Wave's invoicing is free with no monthly fee — you only pay when a client actually pays a card-based invoice — which makes it the cheapest way to look professional while billing a handful of clients.
Strengths
- Unlimited invoicing at no monthly cost; you pay per-transaction only when collecting
- Invoices double as light accounting records since Wave also does bookkeeping (see our accounting category)
- Simple enough to set up and send your first invoice same-day
Watch out for
- Not built for embedded/API checkout — it's invoicing-first, not a payments platform for a product
- Feature depth (recurring billing, multi-currency nuance) trails Stripe
5. Lemon Squeezy
Best for digital productsBest for: solo founders selling software, templates, or digital downloads who want tax handled for them
Lemon Squeezy acts as merchant of record, meaning it calculates and remits sales tax/VAT on your behalf globally — a genuine relief for a solo founder who doesn't want to become a part-time tax accountant.
Strengths
- Merchant-of-record model means global sales tax/VAT compliance is handled, not DIY
- Built specifically for digital products and SaaS — license keys, checkout, subscriptions included
- Simple flat fee per transaction instead of separate processing + tax-tooling costs
Watch out for
- Higher per-transaction fee than Stripe to cover the tax-handling service
- Less relevant if you're selling physical goods or in-person services
Questions solo founders ask about payments & invoicing
Do I need more than one payment processor?
Many solo founders end up with two: one for product/subscription checkout (Stripe or Lemon Squeezy) and one for ad hoc client invoicing (Wave or PayPal). It's rarely worth running more than two unless you have distinctly different sales motions.
Who handles sales tax and VAT?
Stripe Tax can calculate and help remit tax but still puts compliance decisions on you. Lemon Squeezy and similar merchant-of-record platforms take on that liability directly, at the cost of a higher per-transaction fee — worth it for many solo digital-product sellers.
What's the real difference in payout speed?
Standard payout timing across Stripe, Square, and PayPal is typically one to two business days once you're established, with faster options available for a fee on some platforms. New accounts sometimes face longer initial holds while the processor verifies transaction patterns.
Want the full head-to-head?
This shortlist is deliberately brief. For a deeper comparison with a full feature table and a named verdict, read Stripe vs PayPal vs Square.