Digital River Alternatives for 2024

Estimated read time: 10 minutes, 22 seconds

There are a lot of Digital River alternatives on the market, and you may not know what makes any of them stand out in particular.

It’s especially important to note that Digital River is a merchant of record (MoR), which means that many payment service providers may not include the kind of comprehensive services you’re used to with an MoR.

In this post, we cover:

What a merchant of record is, and why it’s so important to make sure your MoR-level service isn’t disrupted if you’re thinking of switching providers.
Why FastSpring is an excellent Digital River alternative.
Three other payments options in 2024.

FastSpring handles the entire payment process from checkout to remitting end-of-year taxes for SaaS companies. To learn more about how FastSpring can help you scale quickly, sign up for a free account or request a demo today.

Why the Best Digital River Alternative Is a Merchant of Record

If you’re familiar with Digital River but aren’t familiar with the term “merchant of record,” you might not be familiar with exactly how many benefits come with using one.

Here’s a refresher on what an MoR is and why — if your business is currently using one to monetize your SaaS, software, or other digital product — you probably want to ensure you keep using one.

What Is a Merchant of Record?

A merchant of record (MoR) is the entity that actually sells the goods and services to the customer. Companies can serve as their own MoR, but many opt to outsource that responsibility to a company like Digital River or FastSpring to sell goods and services on their behalf.

The MoR takes on the liability of SaaS transactions for you, meaning they handle everything from payment processing, to chargeback management, to collection and remittance of taxes, and even compliance with local laws and regulations. And because the MoR is liable for issues in those areas, they handle resolving those issues so you don’t have to.

Digital-commerce-reliant businesses that utilize an MoR can focus less on ecommerce and more on making great software, SaaS, video games, mobile games, or other digital goods.

What Makes a Merchant of Record Different From Payment Service Providers?

Payment service providers (PSPs), like MoRs, serve as a bridge between businesses that want to sell a product, and the specialized networks and services that are needed on the back end to make those transactions happen. Those specialized networks and services may include payment gateways, payment processing, a merchant account to accept debit and credit card payments, and others.

PSPs usually also include some sort of ecommerce platform and/or integration functionality (such as APIs, plugins, special integrations, etc.) to integrate their payments platform or checkout with your online store or website, but options will vary.

However, payment service providers usually stop short of managing risk, handling taxes, and assisting with chargebacks. If rules and regulations change in any of the regions or countries where you sell your product, you’d be responsible for keeping track of those changes and updating your PSP processes and checkout accordingly.

Some PSPs may offer upgradeable payment solutions to get their services closer to those that an MoR includes automatically, but they are often bolt-on features, and they will come with upgrade fees. For example, Stripe has a fraud prevention upgrade called Radar, but it comes with additional costs per transaction fees.

Grow With FastSpring, an Experienced Merchant of Record

FastSpring is the leading merchant of record for global software companies, powering over a billion dollars in worldwide transactions every year.

Here are just a few of the reasons we’ve earned that reputation.

We Have Decades of Experience

Founded in 2005, FastSpring has two decades of experience with enabling global payments, and we’ve been a part of the SaaS landscape as it has grown.

Because of this, our team deeply understands the complexities of selling digital goods and software, including subscription management and all of the nuanced needs that come with it.

We’re Backed by Great Investors

You don’t need to worry about FastSpring being profitable or reliable. Along with our experience, we also offer the peace of mind that comes with being backed by a top-performing, highly reputable investment firm.

Thanks to Accel-KKR, FastSpring has the resources and proceeds needed to help scale your business with online payments, while providing excellent corporate, privacy, and security governance.

We Grow When You Grow

Our many years in the global payments platform industry has also enabled FastSpring to grow over time — but that growth has only happened because of our great customers.

That’s for two reasons: because we work on a revenue-sharing model, and because we’re a partner who wants to help you continue growing.

1. FastSpring Makes Money When You Make Money

Thanks to FastSpring’s revenue sharing model, we make money when you do. When your buyer makes a purchase, we charge a small commission fee on that transaction.

That means that if you’re not transacting, we’re not charging that commission.

Our team will work with you to determine simple, flat-rate pricing based on your volume of business and transaction time, and that pricing includes all of our platform’s features and tools.

Learn more about FastSpring’s pricing here, or request a meeting to discuss more details.

2. FastSpring Wants to Be Your Partner, Not Just Your Payments Solution

Stardock was able to make the transition to SaaS subscriptions thanks to FastSpring’s ready-to-use existing subscription infrastructure, but they saw the mutual investments that we were putting back into our own platform to continue developing new features and products.

This made Brad Sams of Stardock feel secure in Stardock’s partnership with FastSpring, because he could see we were in it for the long haul. “Because the better we do, the better FastSpring is going to do. We’ve got to make sure that everybody’s winning, and things with FastSpring just felt aligned.”

“FastSpring was on that path of continued investment and wasn’t just collecting the paycheck every month and doing nothing.”

– Brad Sams, Stardock

TestDome has also been very happy with FastSpring’s support, noting that it goes from assistance with buyer issues and chargebacks all the way up to the top of the company and our CEO.

TestDome CEO and co-founder Mario Zivic is happy to have been using FastSpring for a decade, saying that FastSpring has been the clear and easy choice for their merchant of record needs.

Besides more common support for buyer issues like chargebacks, credit card issues, and refund requests, Mario even received an offer of advice from FastSpring’s CEO. That resulted in a personal phone call and “an extremely valuable piece of advice,” noting that he has seen firsthand that “the willingness to help and support was not limited to Support — it went all the way up to the CEO.”

Award-Winning Customer Support and Customer Success

The high level of support and service has not only been recognized by our customers — it has also been recognized in our industry.

In April of this year, FastSpring’s support team won a Silver Stevie® award for Front-Line Customer Service Team of the Year in the “Technology Industries – Computer Software” category.

Then in June, FastSpring’s customer success team won a gold Globee® award for Customer Excellence in the “Achievement in Team Customer Success” category.

We don’t just say we want to be a partner — we set out to prove it.

Our Hands-On Migration Team Strives for Your Success

FastSpring support isn’t only there for you after you’ve onboarded — we want to ensure you get up and running on our payments platform as quickly and easily as possible.

Our implementation team of hands-on, highly efficient sales engineers are experts in FastSpring’s pre-built web storefront solution, the flexible and extensive FastSpring API, webhook features, and more. They’re there to help you make a seamless transition through migration and integration.

FastSpring has powerful integrations with best-in-class third-party solutions, including WordPress, Zapier, and multiple Google services. Learn more about FastSpring integrations here.

Other Great FastSpring Features

Here are a few more great reasons to use FastSpring:

You’ll automatically be compliant with sales tax, VAT, and privacy regulations around the world.
FastSpring accepts the top 98% of payment methods that are used in 185 countries across the globe, in 21+ languages.
You can customize seamless embedded or modal popup checkout experiences on your website.
We make it easy to offer coupons, discounts, and dynamic price points for promotions.
Checkout can be streamlined to a single click with 1ClickPay.
Strong documentation that includes AI-powered search for precise, relevant responses in real time.
And so much more!

To learn more, check out our product overview, or sign up to check out our platform yourself. Want personalized answers? Request a demo with one of our experts.

3 More Digital River Alternatives

The following options are common alternatives you might look at if you’re assessing Digital River competitors. Keep in mind that none of the below options are merchants of record, so you may need to supplement their services, either internally or with additional vendors and services.

Stripe

Stripe is a well-known payment processor that allows businesses to accept debit cards, credit cards, and mobile payments, with features such as:

Payment processing.
A customizable UI and pre-built checkout flows.
Simple subscription management.
Online invoicing.

You may be wondering if it’s an option for your business simply because it’s so ubiquitous, and it may appear at first to have lower pricing than the merchant of record you’re currently using. But that’s because Stripe isn’t a merchant of record.

If you’re looking to lower your transaction costs and you have the scale, expertise, time, and teams to support the many services you’ll be losing by switching from an MoR to Stripe, this may be a good option for your business. But you’ll need to make up the difference in services lost, including tax compliance, fraud management, and more. Stripe does offer products to cover some of those needs, but they are add-ons that will increase your overall cost — so any initial cost savings might quickly disappear.

However, if you want to switch from Digital River to a business in the same category with the features and peace of mind an MoR provides, Stripe probably isn’t the right Digital River competitor for you.

Adyen

Adyen bills itself as an “end-to-end payments, data, and financial management in a single solution.” Its payment solutions and financial services include features and products such as:

In-person and online payments in one system.
Revenue optimization with intelligent payment routing to improve conversion rates.
Subscription management features like dunning automation.
Risk management with fraud detection and prevention.

While Adyen has some of the features a merchant of record offers, you will still need to manage your own company accounts and merchant accounts.

PayPal for Business

PayPal is a well-known digital wallet for personal online payments, but they also offer a payment processing option for small business. PayPal for Business is both an in-person and ecommerce solution.

(SaaS companies using FastSpring can also process payments using PayPal.)

Other features of PayPal for Business include but are not limited to:

Built-in integrations with major online shopping carts (such as Shopify).
QR code and POS systems.
Invoicing.
Chargeback protection (only available for business accounts with Advanced Credit and Debit Card checkout).

Besides PayPal for Business, PayPal also has a payment processor specifically for SaaS called Braintree.

How FastSpring Can Help

Need a merchant of record to help you grow your business internationally? FastSpring is a full-stack, all-in-one payment solution for SaaS, software, video games, and other digital product businesses.

Our services include VAT and sales tax calculation, collection, and remittance; payment localization; regulation compliance; award winning consumer support; and so much more!

Results from fastspring.com

Digital River Alternatives for 2024