Paddle, a merchant of record (MoR) for digital product companies, has raised $25 million. The funding round, led by CIBC Innovation Banking, will help finance Paddle’s ongoing global expansion and product growth. As an MoR, Paddle handles payments, sales tax, refunds, fraud, and compliance for more than 6,000 Software-as-a-Service (SaaS), AI and App companies, “replacing the need for a complex and fragmented payment technology stack.” The company says it helps those businesses scale faster by lowering operational hurdles and helping them enter new markets faster. “In an ever-connected world, it’s important that digital product companies can receive payment from customers in any location without the hassle of navigating multiple payment processes in different geographies,” Sean Duffy, managing director of CIBC Innovation Banking, U.K. and Europe, said. The funding comes at a pivotal moment for the company, with Paddle experiencing rapid growth in 2025 thanks to both the growth in new AI products, and the opening up of Apple’s app ecosystem to web payments.