Loofa provides a unified SDK that allows businesses to switch between Paddle and Stripe for payment processing, optimizing sales tax compliance and reducing payment fees. This solution addresses the challenge of overpaying sales tax and fees by enabling users to leverage jurisdictional thresholds effectively while managing complex payment workflows without extensive coding.
Funding
Funding not disclosed
Founders
Product
Problem
Many SaaS and e-commerce businesses face challenges with global sales tax and VAT compliance, often overpaying due to jurisdictional thresholds and the complexities of managing multiple payment processors. Relying solely on merchant-of-record services like Paddle can lead to unnecessary tax collection and fees in regions where they aren't legally required. Conversely, using only Stripe may result in non-compliance and potential penalties due to its limited sales tax filing capabilities.
Solution
Loofa provides a unified SDK that enables businesses to intelligently route transactions between payment processors like Paddle and Stripe based on customer location and sales tax thresholds. This allows companies to leverage Paddle's sales tax compliance features where necessary while using Stripe to minimize payment fees in jurisdictions where sales tax collection isn't required. Loofa simplifies complex payment workflows by providing a single integration point, handling webhooks from different sources, and offering a workflow builder for implementing custom payment logic.
Target Audience
Loofa targets SaaS and e-commerce businesses that want to optimize their global sales tax compliance and reduce payment processing fees by strategically using both Paddle and Stripe.
Features
- Unified SDK for seamless integration with Paddle and Stripe
- Workflow builder for defining custom payment routing logic based on location and tax thresholds
- Automated webhook handling from both Paddle and Stripe through a single API
- Sandbox environment for testing payment configurations before deployment
- Dashboard for connecting and managing Paddle and Stripe accounts
- Free tier for up to 50 successful transactions per month