Been exploring various MOR options for our iOS subscriptions and hearing different opinions on their effectiveness.
What are you finding is working well? I’m particularly curious about how they handle tax and compliance issues.
Merchant of record fees can add up quickly but they usually pay for themselves if you’re doing decent volume across multiple regions.
The compliance side is where they really earn their money. Handling VAT changes and different country requirements manually gets messy fast when you’re trying to focus on growth.
I’d suggest testing with your current volume projections to see if the fee structure makes sense for your business.
Tried a few. They all work but check their fee breakdowns first.
We switched to Paddle about 8 months ago for our subscription app. The tax handling is pretty solid - they take care of VAT calculations automatically which saved us tons of headaches.
RevenueCat integration was smooth too. Revenue reporting could be better but their compliance coverage is worth it. We’re in 12+ countries now without worrying about tax registration.
One thing that caught me off guard - their fees are higher than expected when you factor in currency conversion. But the peace of mind on compliance made it worth it for us.
This breakdown helped me understand the MOR model better when we were evaluating options. The compliance piece they cover is huge if you’re scaling internationally.
Digital River is effective for high-volume apps. Their compliance engine handles EU VAT changes without you stressing over regulations. Look closely at their fee structure in relation to your LTV. Most MORs have fees ranging from 3-8%. If your user LTV is solid, that expense is minor compared to the hassle of managing tax compliance on your own. Calculate the numbers for your current subscribers and expected growth. You’ll find the breakeven point clearer than it seems.
FastSpring handles the tax stuff pretty well. Their dashboard is basic but gets the job done.