PS: I analysed over a year’s worth of reddit posts to figure out what’s working for founders as far as online payment gateways are concerned. You can check the full thing out here. However, here’s a summary of what other founders on Reddit recommend if your SaaS is still in its early stages.
|
Online payment gateway |
Key features |
|---|---|
|
Chargebee |
Free plan up to $100k ARR |
|
BillaBear |
Free self-hosted option |
|
Lemon Squeezy |
Simple setup despite some extra fees |
|
Stripe |
Easy to get started but watch for fees as you scale |
|
Mollie |
Easy setup and good documentation |
Based on my extensive research across Reddit discussions, I've compiled the top recommendations for payment gateways that prioritize affordability and simplicity without sacrificing essential functionality. As a founder of an early-stage SaaS startup, you're juggling a million priorities with limited resources. Your payment gateway shouldn't be yet another complex system draining your time and money.
So… without further ado, here are:
The Top 5 Payment Gateways for Early-Stage SaaS Startups
Chargebee: The Startup-Friendly Subscription Manager
It’s great because:
- Free plan available until you reach $100,000 in Annual Recurring Revenue
- Handles complex billing logic out of the box so you don't need to build it yourself
- User-friendly interface that non-technical team members can manage
But watch out for:
- The free plan has limitations on reporting capabilities
- You'll need to upgrade to access more advanced features like taxation
- Limited control over the checkout experience
Best for: SaaS startups with subscription models who want to avoid building billing logic from scratch and can live with some feature limitations in exchange for zero cost.
BillaBear: The Self-Hosted Budget Option
It’s great because:
- Available completely free if you self-host
- Supports more complex billing scenarios like usage-based and seat-based pricing
- Can migrate from Stripe Billing if you're looking to reduce costs
But watch out for:
- The cloud-hosted version is surprisingly expensive
- Tax management is a separate and costly product
- The UI isn't as polished as competitors
- Requires more technical know-how to set up self-hosting
Best for: More technical founding teams who are comfortable self-hosting and want maximum control while minimizing costs.
Lemon Squeezy: The Simple All-in-One
It’s great because:
- Very user-friendly interface with minimal learning curve
- Good documentation that doesn't require a developer to understand
- Built-in affiliate program at no extra cost
- Still supports software licenses (unlike some competitors)
But watch out for:
- More expensive than some alternatives with extra fees for international transactions
- Primarily focused on USD transactions, which can be limiting
- Some users report occasional bugs and slow customer service
- Subscription immediately expires upon cancellation (no remaining period)
Best for: Non-technical founders who value simplicity and speed of setup over having the absolute lowest transaction costs.
Stripe: The Industry Standard Starter
It’s great because: Widely recognized and trusted in the industry Comprehensive documentation and extensive integration options Can start using it without having a registered company Reasonable starter fees before you scale
But watch out for: Recent price increases affecting profitability as you grow Doesn't handle tax remittance (just calculates it) Potential for account reviews and payment holds Becomes more expensive as you scale
Best for: Startups who anticipate complex integration needs or want the safety of using the industry standard solution.
Mollie: The European Simplicity Champion
It’s great because:
- Widely recognized and trusted in the industry
- Comprehensive documentation and extensive integration options
- Can start using it without having a registered company
- Reasonable starter fees before you scale
But watch out for:
- Recent price increases affecting profitability as you grow
- Doesn't handle tax remittance (just calculates it)
- Potential for account reviews and payment holds
- Becomes more expensive as you scale
Best for: Startups who anticipate complex integration needs or want the safety of using the industry standard solution.
Making the Smart Choice for Your Early-Stage Startup
When evaluating these payment gateways, consider these key factors that redditors repeatedly emphasize:
True Cost Calculation
Don't just look at the advertised transaction fees. Other Founders on reddit recommend calculating the true cost, including:
- Monthly minimum fees Setup costs
- Extra charges for specific payment methods
- Currency conversion fees
- Chargeback fees
- Add-on costs for features you'll need
Growth Flexibility
Several founders shared cautionary tales about choosing platforms that were cheap at first but became prohibitively expensive or limiting as they grew. Consider:
- How pricing scales with your success
- Export capabilities if you need to switch later
- Ability to add features as you mature
Customer Experience Impact
Multiple Reddit posts emphasized that saving a percentage point on transaction fees isn't worth it if:
- The checkout experience is confusing
- Payment failures are more common
- Your target customers don't trust the processor
Developer Resources Required
Be honest about your technical resources. Other Founders on reddit consistently warned:
- Some "simple" platforms require significant customization
- Documentation quality varies dramatically
- Support responsiveness becomes crucial when you're stuck
Most importantly, Always Have Plan B
One recurring theme across discussions between founders on reddit was the importance of having a backup payment method. As one experienced founder put it:
"We had all our payments running through a single gateway until they suddenly froze our account during a surge of new customers they deemed 'suspicious.' We lost nearly a week of revenue before getting it resolved. Now we always offer at least two payment methods." Surprisingly (at least for me), the analysis shows that adding PayPal as a secondary option despite its higher fees and issues can save you in an emergency. Many end-users still prefer it, and having it as a backup isn’t a bad idea.
Key Takeaways for Early-Stage SaaS Founders
Start with a free or low-cost option that meets your basic needs rather than paying for features you might use "someday".
Prioritize simplicity and good documentation over having every possible feature.
Consider tax handling requirements early, especially if you plan to sell internationally.
Factor in the hidden costs of development time and customer support burden.
Always have a backup payment method.
Sources
Stripe
What payment providers do you use? Stripe? Exploring Payment Providers: Is Stripe the Best Choice for a SaaS? SAAS Owners don't use Stripe Stripe for SaaS (clients)? Switching from Paddle to Stripe Recurly vs Paddle vs Stripe PayPal or Stripe for small business?
Lemon Squeezy
Is Lemon Squeezy a bad choice for EU users, as I have read? Don't trust Lemonsqueezy with your business Paddle vs. Lemon Squeezy - Experiences?
BillaBear
BillaBear: A Symfony powered Subscription Management and Billing System I'm offering 5 free spots for my billing service
Chargebee
Thoughts on Chargebee What's the benefit of using a program like chargebee? Chargebee for Startup Recurring SaaS Payment SAAS subscription management software options?