Costs reduced, performance increased: How Paddle achieved a 2% higher acceptance rate

• 2% acceptance rate uplift on all Checkout.com traffic 
• 227.8% increase in transaction volume with Checkout.com in less than one year
• $135,000 per year saved from Checkout.com’s network cost optimizations 

Running a SaaS business can be challenging, but Paddle is out to change this. As a Merchant of Record (MoR), Paddle’s all-in-one solution for managing payments, tax, subscription management, and more makes selling software easy. As a tech powerhouse fueling other software companies, it’s important Paddle gets its tech stack right – and that includes its payment service provider (PSP). Especially with payments at the core of its offering. 

With over 5,000 customers, Paddle’s reach is global. Pioneering. Innovative. It needs leading acceptance rates and localized payment flows to keep advancing. So Paddle partnered with Checkout.com to bring optimized transaction processes, global support, and a 2% higher acceptance rate on Checkout.com traffic for its customers. 

Challenge: Driving higher acceptance rates and cost efficiency

Paddle’s business model relies on companies entrusting their payments to Paddle instead of managing them in-house or sourcing their own PSP. And the best way for Paddle to win their trust? Industry-leading acceptance rates. 

But Paddle needed more than a PSP with tunnel vision for a higher acceptance rate. It sought a true partner to provide expert guidance and cost optimizations along the way, important for a business that relies on strategic enhancements to maximize its revenue. That led Paddle to look for a PSP with deep regional knowledge, proactive engagement, and a commitment to collaboration. 

User experience was also an area where Paddle sought continuous improvement. The company recognized the need for enhanced data to make more effective decisions that would ultimately benefit its customers. This insight led Paddle to form a strategic partnership with Checkout.com. Here's how the journey has unfolded so far.

Solution: A proactive and collaborative approach

Checkout.com provided Paddle with a comprehensive, hands-on approach to payment optimization. Key solutions include: 

Optimized payment routing 

Checkout.com’s AI-powered Intelligent Acceptance automatically optimizes every payment through smart routing and data, helping Paddle capture each payment, reduce costs, and unlock untapped revenue – essential for driving its margins. 

Local acquiring 

As a global business, Paddle accepts 30+ currencies and plans to expand. Checkout.com’s local acquiring licenses in the EEA, UK, and US support Paddle’s ability to accept multi-currency payments while eliminating unnecessary cross-border and FX fees. 

Issuer outreach 

Checkout.com’s Issuer Outreach team removes acceptance rate barriers by effectively engaging with issuers. After identifying a chance to increase Paddle’s acceptance rate with Bank Polska, the team intervened, leading to rule changes at the bank that significantly boosted Paddle’s acceptance rate. ‍

“Checkout.com’s Issuer Outreach sets it apart from other PSPs. Many PSPs say they do it, but Checkout.com delivers real results. That’s a testament to its investment, the strength of its issuer relationships, and its proactivity in identifying when to reach out to issuers.” - Edward Ashton, Head of Payments, Paddle.

Collaboration 

From performance monitoring to requesting product feedback, Checkout.com’s deep partnership with Paddle spans all areas – driving direct improvements in Paddle’s payment performance. 

Weekly reviews track rising acceptance rates and identify areas for improvement, while Checkout.com’s tailored optimization workshops help Paddle reduce costs. Checkout.com’s swift, detailed support reduces operational load on Paddle.

Results: Big wins for Paddle’s acceptance rate and cost savings

This partnership is helping customers streamline their business operations, payment by payment. The result is a cycle of improved user experience for both Paddle's customers and their end-buyers, with fewer payment declines and enhanced local payment options.

To recap on Paddle’s big wins as a result of its partnership with Checkout.com, and to introduce some more:

• 2% acceptance rate increase on all Checkout.com traffic
• 49% uplift in acceptance rate with Bank Polska thanks to Issuer Outreach
• $135,000 saved per year from Checkout.com’s network cost optimizations, with an additional $100,000 per year opportunity identified
• Hundreds of hours saved due to enhanced operational efficiency, responsiveness, and access to a dedicated Account Manager and Performance Manager

In less than a year, Paddle’s transaction volume with Checkout.com has grown 3.5x – reflecting its continued trust in the partnership. With a shared focus on innovation and efficiency, they continue to prove that collaboration brings real results.

“One of the biggest things we value is Checkout.com’s overall expertise, from guidance around fraud mitigation to scheme and interchange fees, local regulations, acceptance improvements, and beyond. It gives us insights that drive cost savings and operational efficiency, a big reason why we’re scaling our volume with Checkout.com.” - Edward Ashton, Head of Payments, Paddle

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