Lemon Squeezy is a merchant of record for software and digital products. A merchant of record is the company that legally sells the product to the customer: it takes the payment, handles fraud and merchant fees, pays sales tax and VAT in each country, and pays the rest to the business. Stripe acquired Lemon Squeezy in 2024.
A business sells through hosted checkout links, a checkout embedded in its own website, or a ready-made online store. Lemon Squeezy accepts payments from more than 135 countries with over 20 payment methods, including PayPal. It runs subscriptions charged weekly, monthly or yearly, with upgrades, free trials and usage-based billing, and it retries failed payments (dunning). After each sale it can issue a software license key automatically and serve signed download links. Other tools cover email marketing, discount codes, affiliates and revenue reports, and developers connect through an API.
Lemon Squeezy is a hosted service with no monthly fee; it keeps a percentage plus a fixed fee from each sale. In January 2026 its CEO wrote that the team now builds Stripe Managed Payments and plans an easy migration for Lemon Squeezy users.