Paddle changelog vendors.paddle.com

New

Paddle has updated and added new tax rates for Canada, Maryland, Indonesia and Malaysia. Here is what you need to know:

• Canada 🇨🇦: Paddle now collects federal tax on top of the existing provincial taxes on B2C and B2B purchases made by customers located within all 13 provinces and territories of Canada. You can find out the relevant tax rate for each province from here.

• Maryland 🇺🇸: We now charge 6% sales tax from buyers in Maryland, US.

• Indonesia 🇮🇩: Paddle has registered for sales tax in Indonesia and now charges the required 10% VAT for buyers within that territory.

• Malaysia 🇲🇾: Our registration for Malaysia sales tax has been completed and we now charge 6% tax when a customer makes a purchase from within Malaysia.

How these changes affect you:

If you’re charging tax exclusive from your prices then please be aware this might increase the amount your customers are charged in the future.

If you have any questions, you can get in touch with our team at sellers@paddle.com.

Announcement

We’re happy to announce that we’ve just released an update for our Mac SDK that - among the usual bug fixes - introduces Paddle’s sandbox environment to the Mac SDK. 🎉

We’ve also done the initial tests and updated our SDK in preparation for macOS Monterey.

The bug fixes include:

• Improved memory leaks.
• Stopped the SDK from generating .profraw/coverage files for certain scenarios.
• Improved Paddle’s Checkout caching behaviour to prevent future issues with paddle.js updates.

As you may know, a few months ago we introduced Paddle's sandbox environment to enable you to better test your customers’ user experience using test cards to simulate successful and unsuccessful transactions and user flows.

If you don't have a sandbox account yet, you can create one here.

To use the sandbox environment on the SDK you will need to use [Paddle setEnvironmentToSandbox]; method before calling any startLicensing methods, preferably in applicationDidFinishLaunching: and change the vendor id, product id and the API key to the sandbox values.

Please note that the sandbox only works with one-off SDK products, it does not work with subscription licensing.

You can head here to download the latest release of our Mac SDK.

If you have any questions or require assistance, please get in touch with our team at sellers@paddle.com or via the support icon in the Paddle dashboard.

New

Our latest release lets you assign ‘taxable categories’ - such as ‘SaaS’ or ‘eBook’ - to your products and subscriptions. Selecting the right category lets Paddle charge tax rates specific to your products.

Digital products are taxed with varying rates around the world, not just based on geography or whether the sale is B2C or B2B, but also what type of product is being sold. There are thousands of categories out there, but Paddle lets you select from and sell the following:

• Standard Digital Goods: Pre-written downloadable software to be installed on a local machine, like Excel
• Digital Goods: Non-customizable digital files (not software), like digital artwork or online video tutorials
• eBooks: Digital books sold with permanent rights for use
• SaaS: Online software where continuing access is usually paid for with subscriptions
• Web Hosting: Cloud storage or services for information, assets, or IP

Once assigned, Paddle will update the tax charged on relevant payments. If your products are currently mis-categorized, changing this to the correct option could even improve your conversions. For example, eBooks are often subject to lower tax rates, meaning customers would pay less for your product.

Head to the new Catalog > Taxable Categories page to request the use of different categories from our team, and then update your products and plans. You can also read our blog post for more details or contact our team with any questions.

New

We’ve recently added new events to offer our sellers using Branded Inline Checkout greater flexibility to build better flows.

Paddle now fires events when customers change their payment method in the Branded Inline Checkout. This provides you with enhanced data-tracking capabilities and useful insights on your customers’ behaviour.

Sellers using the Branded Inline Checkout will now be able to do better analytics and create a better checkout experience by displaying different interactions on the customer’s screen based on Checkout.PaymentMethodChange and Checkout.WireTransfer.PaymentMethodChange events. For example, when a customer clicks on "Change payment method", you can reintroduce the “Back” button so the customer can return to the previous step.

Please contact our team at sellers@paddle.com if you have any questions.

Announcement

Over time, app-based interfaces and license keys have given way to web-based checkouts and email logins, which has led to a significant decrease in usage of our Windows SDK.

Therefore Paddle will no longer support the Windows SDK going forward.

Although the Windows SDK will still work as it is now and the developer documentation will still be accessible, the Windows SDK will no longer receive any fixes, improvements or technical support. Its smooth running can no longer be guaranteed, so if you continue to use it please proceed with caution.

Sufficient usage of our Mac SDK means we will continue to support that for the foreseeable future.

Although this affects a very small proportion of Paddle’s software sellers, we always hate to remove support for any of our technology. But as our customers’ demands and needs evolve, we sometimes need to refocus our efforts to have the greatest impact on revenue delivery and growth.

Please click here to download a guide on how to use webviews and the Pay Link API to continue facilitating purchases in-app, and for a simple lambda function to help you get going. You can also contact the team at sellers@paddle.com where we'll be glad to help.

New

As part of Paddle’s growth around the world - including in the United States where we support hundreds of software sellers - we have introduced a new US entity called Paddle.com Inc.

This has allowed us to make some improvements:

• To drive the best possible payment acceptance following the release of Paddle Pilot, all end customers located in the US will now purchase from this new entity
• This means ‘Paddle.com Inc.’ will now appear on the checkout compliance bar, invoices, and receipts where applicable, creating a more 'local' experience for US customers
• You will now receive a US payout invoice and a Rest of World payout invoice, which break down the sales in each region. This will also be accompanied by a ‘remittance advice’ document, which summarizes the amount paid out across those two. You will continue to receive a statement as well, which breaks down your revenue and fees. Read more about these documents on our support page
• You can now download all payout documents and statements from within your Paddle dashboard for the first time

If you have any questions about what this means for yourselves or the end customers please email sellers@paddle.com.

Improvement

We’ve changed the final - and arguably most important - button in the Paddle Checkout to help convert subscribers onto free trials. Previously when a subscription had a set Trial Period, the final step of the Checkout said "Subscribe Now". This occasionally had a negative impact on conversions, creating confusion about whether cards would be charged immediately.

From now on the wording in this case will say “Start Your Free Trial”, as on the image below. This is designed to reassure subscribers that they're not immediately charged.

Paddle is committed to helping you improve your conversions and acquisition. That's why we have a team on the Checkout to optimize changes like this. If you have any questions, please contact our team.

Improvement

To provide the best experience for customers and to meet 'best practice' on sales tax compliance, we've improved the display of tax in the Overlay checkout when selling into the United States and Canada.

For customers judged to be in those countries, where tax is often expected to be displayed alongside the total price, the Overlay checkout will now break out the tax amount and the rate charged as specified values. Showing these separate from the total product price better caters to US and Canadian customers and upholds tax standards. Note that:

• This is unaffected by your pricing settings of whether tax is 'inclusive' or 'exclusive' of the product price. We are simply displaying the amount of tax charged and the sales tax rate alongside the total price
• The Inline Checkout is unaffected because it never shows pricing. Instead you can show these details through your implementation
• This also doesn't apply to free items, where no tax is collected
• This will only display for US & Canadian customers

If you have any further questions please contact our team.

Improvement

In September of last year, the Irish Tax Authorities announced a temporary reduction in their standard VAT from 23% to 21%. As of February 28 the rate change has expired, and so Paddle have also reverted the Ireland VAT rate back to 23%.

Alongside this update we have amended the VAT rates in the Canary Islands, Channel Islands, and Livigno with all now set to the required 0%.

As part of Paddle's revenue delivery platform, Paddle Comply ensures sales tax rates are up-to-date and that all transactions are compliant. This includes staying on top of both permanent and temporary rate changes.

If you have any questions, you can get in touch with our team via sellers@paddle.com.

Announcement

Today we’re pleased to announce the launch of Paddle Pilot, a product that works to increase the amount of successful payments, whether at checkout, subscription renewal, or upgrade.

SaaS companies lose revenue to declined payments caused by overly sensitive fraud checks and technical hiccups. Pilot now gives payments multiple chances to convert. Using Managed Payments’ multi-acquirer banking infrastructure and high payment volume, Pilot :

1. routes payments to the acquirer with the best track record with similar payments

2. and then cascades any payments that do get blocked to fallback acquirers, to try again

Pilot has already driven increased payment acceptance for some software sellers by as much as 4%.

Routing and cascading payments for more chances of success means converting new subscriptions, retaining customers, and expanding them over time, capturing more of your hard-won revenue and supporting your scale-up effort.

Please ask our team if you have any questions!