Lemon Squeezy

Lemon Squeezy is an all-in-one payments, subscriptions, and digital commerce platform that acts as your merchant of record (MoR) — meaning it takes legal responsibility for collecting and remitting taxes globally on your behalf. We rate it 72/100 — a solid choice for indie developers and small SaaS teams who want to skip the tax headaches, though post-acquisition uncertainty and slow support hold it back from a higher score.

What is Lemon Squeezy?

Lemon Squeezy was founded and launched into public beta in October 2022 by a small team of experienced software builders. It quickly found its niche with indie hackers and solo SaaS founders who needed a way to sell software globally without registering for VAT in dozens of countries. In July 2024, Stripe acquired Lemon Squeezy for an undisclosed sum — making it one of the rare indie products to go from idea to acquisition in under three years. As of 2026, Lemon Squeezy runs on Stripe's payment infrastructure while maintaining its own checkout experience and feature set.

The core problem Lemon Squeezy solves is sales tax compliance. When you sell software globally, you're legally required to collect VAT in the EU, GST in Australia, and sales tax across U.S. states — a nightmare for solo developers. As your MoR, Lemon Squeezy handles all of that automatically. You receive your earnings (minus the transaction fee); they deal with tax authorities worldwide.

Key Features of Lemon Squeezy

• Merchant of Record: Lemon Squeezy is legally the seller of record in 135+ countries, handling VAT/GST collection, remittance, and compliance — zero setup on your end.
• Subscription Billing: Full recurring billing with support for trials, pauses, plan changes, and dunning (failed payment recovery) built in out of the box.
• License Key Management: Automatically issue, validate, and revoke software license keys — ideal for desktop apps, plugins, and one-time purchases.
• 21 Payment Methods: Accepts Visa, Mastercard, Amex, PayPal, Apple Pay, Google Pay, and 15+ more across 135 countries, with no extra integration work.
• Built-in Affiliates & Discounts: Native affiliate platform with custom commission rates, coupon codes, and bundle pricing — eliminates the need for a separate tool like Rewardful.
• Hosted Checkout: No-code, fully hosted checkout pages and storefronts that go live in minutes without touching any code. Custom domains and embeds also supported.
• Digital File Delivery: Secure, time-limited download links for ebooks, templates, design assets, or any downloadable product.

What Users Say About Lemon Squeezy

The community sentiment on Reddit and Product Hunt is mixed but leaning cautiously positive for small-scale use. Developers consistently praise the frictionless setup — "I had my first product live in 20 minutes" is a common refrain on r/indiehackers. The tax compliance story is the #1 reason people choose it: never having to think about VAT nexus thresholds is cited in nearly every positive review.

The criticism is equally consistent. Multiple verified reviews on Trustpilot and G2 describe slow or unresponsive customer support, with some users reporting account approval delays lasting a week or more. A recurring concern in Hacker News threads is post-acquisition uncertainty: since Stripe bought the company in July 2024, the public roadmap has gone quiet and feature development has noticeably slowed. The indie hacker community increasingly recommends Polar as a newer, actively developed alternative. Reports of checkout bugs (customers unable to complete purchases or being double-charged) have also surfaced in community threads, though frequency is unclear.

Lemon Squeezy Pricing

Lemon Squeezy uses a transaction-based pricing model — there are no monthly subscription fees. You pay only when you make a sale.

Plan	Monthly Fee	Transaction Fee	Notes
Standard	$0	5% + $0.50	All features included, no limits on products or revenue
Volume / Custom	Negotiated	Reduced rate	For higher-revenue sellers — requires contacting sales

For context: on a $29/month SaaS subscription, Lemon Squeezy takes $1.95 per transaction (5% + $0.50). At $99/month, they take $5.45. Compared to Paddle (5% + $0.50, similar model) and Gumroad (10% flat), Lemon Squeezy's pricing is competitive for products under $100. Polar charges 4% with no fixed fee, which is better for small transactions. Non-US sellers should note that payouts are in USD, introducing FX exposure.

Who Should Use Lemon Squeezy?

Best for: Solo developers, indie hackers, and small SaaS teams (1–10 people) selling software subscriptions, license keys, digital downloads, or online courses globally. Especially useful for those who want a zero-code setup and don't want to think about sales tax compliance. Also a solid pick for early-stage SaaS with modest revenue (under $50k MRR) where the transaction fee is manageable.

Not ideal for: High-volume SaaS businesses where the 5% + $0.50 fee compounds significantly. Sellers who need advanced checkout customization or complex billing logic. Teams who need rapid feature development or responsive SLAs — the post-acquisition roadmap slowdown is a real concern for businesses planning long-term on the platform.

Pros and Cons

Pros:

• Global tax compliance out of the box — no VAT registration in 135+ countries required
• Zero monthly fees — you only pay when you earn, ideal for pre-revenue projects
• Full-stack solution: subscriptions, licenses, affiliates, and discounts in one dashboard
• Built on Stripe infrastructure since the 2024 acquisition — enterprise-grade payment reliability
• Setup is genuinely fast — multiple Product Hunt reviewers confirm first product can go live in under 30 minutes

Cons:

• Customer support is widely cited as slow and sometimes unresponsive, with accounts occasionally locked without clear resolution paths
• Feature velocity has dropped significantly since Stripe acquisition — the public roadmap has been quiet since mid-2024
• USD-only payouts create FX risk for non-US sellers
• Account approval is not instant — can take days to a week, which blocks time-sensitive launches
• 5% + $0.50 fee becomes expensive at higher price points vs. self-managed Stripe + tax tools

Alternatives to Lemon Squeezy

Paddle — The most direct MoR competitor. Similar pricing (5% + $0.50), more enterprise features, and better support. Better for $100k+ MRR businesses. Polar — The emerging indie hacker favorite launched in 2023, charges 4% with no fixed fee, and is actively maintained with a transparent roadmap. Worth evaluating for new projects in 2026. Gumroad — Simpler but takes a flat 10% commission. Better brand recognition for digital creators; worse for pure software subscriptions.

Verdict: Is Lemon Squeezy Worth It?

Lemon Squeezy remains a legitimate choice for indie developers and small SaaS teams who need a fast, zero-code way to handle global payments and tax compliance. The merchant-of-record model genuinely solves a painful problem, and the Stripe acquisition means payments are rock-solid. However, the post-2024 roadmap slowdown and recurring support complaints are real risks — especially if you're building a long-term business on the platform. We rate it 72/100. Use it to get started quickly and validate your product; evaluate alternatives like Polar as you scale past $10k MRR.

Frequently Asked Questions

Is Lemon Squeezy free to use?

Yes, Lemon Squeezy has no monthly fee. You pay 5% + $0.50 only when you make a sale. There's no cost to sign up and list products.

Does Lemon Squeezy handle taxes automatically?

Yes. As your merchant of record, Lemon Squeezy calculates, collects, and remits VAT, GST, and sales tax in 135+ countries on every transaction. You don't need to register for tax in any country separately.

How does Lemon Squeezy compare to Paddle?

Both are merchant-of-record platforms with similar transaction fees (5% + $0.50). Paddle has more enterprise features, better support, and serves larger businesses. Lemon Squeezy is faster to set up and more indie-friendly, but Paddle is the safer long-term choice for high-growth SaaS.

Is Lemon Squeezy open source?

No. Lemon Squeezy is a proprietary, closed-source SaaS platform. It was acquired by Stripe in July 2024 and is not open source.

What happened after Stripe acquired Lemon Squeezy?

Stripe acquired Lemon Squeezy in July 2024. Payments now run on Stripe's infrastructure, improving reliability and global coverage. However, the public roadmap has slowed since the acquisition, and some users report reduced feature development pace.