Merchant of record friction for EU/German B2B SaaS sales

Merchant of record friction for EU/German B2B SaaS sales targets a $6.0B = 300,000 global SaaS vendors x $2,000 ACV (annual subscription for compliance/onboarding tooling) total addressable market with medium saturation and a year-over-year growth rate of 12-18% - driven by growth in digital subscriptions and regulatory enforcement.

Key trends driving demand: Merchant-of-record adoption -- startups choose MRRs like Paddle to outsource tax and compliance, increasing demand for interoperability layers.; Stricter VAT and digital tax enforcement -- regulators and platforms are prioritizing correct VAT handling, raising the cost of errors for sellers.; Public sector procurement digitization -- more institutions publish vendor requirements online, so standardized onboarding artifacts become valuable.; Globalization of SaaS sales -- more EU vendors sell worldwide monthly, making recurring billing compliance an ongoing operational task..