Difference between Gumroad and Payhip

Difference between Gumroad and Payhip

E-commerce has revolutionized the way people do business today. It has enabled small-grade sellers to have an opportunity to start their businesses. An online business can attract both sellers and buyers in equal measure. Various brands are offering such services among them are Gumroad and Payhip. They are quite similar in terms of their dashboard, but they have a myriad of differences.

Gumroad Vs. Payhip

One major distinguishing factor between the two is the modes you are allowed to sell. The two platforms will enable the sell physical and digital products. Gumroad has a preorder option, while Payhip does not have this feature. When you look at pricing, you will also see a significant difference.

Gumroad offers a free tier; the transaction is 8.5% plus 30. It also provides ten dollars a month tier where this fee is for fewer than one thousand customers. This tier has a reduced cost of 3.5% with a plus of 30 with other advantages. Payhip, on the other hand, is more on the generous end. It has no feature for upgrades but is cheap in terms of fees. It offers a free tier of five percent, 29 dollars per month with a 2 percent fee, and 99 dollars per month with no transaction fee.

Another difference comes in switching in currency. Payhip charges consumers in GBP while Gumroad displays prices in GBP, but consumers are charged in US dollars. It can sometimes confuse because consumers are not sure if they were charged in dollars. They also don’t know if they were charged the conversion fee and so forth.

Both platforms will relieve you of EU Digital VAT to the seller. You also are allowed to choose whether or not you can add EU Digital VAT on the list price or even absorb it into the price.

What is Gumroad?

Gumroad is an online business that assists small grading businesses in selling their products to consumers. The firm was formed in 2011 and was initially a digital product distribution site. The eCommerce was to help creative artists sell their artwork. They include musicians, software developers, and movie makers.

It helps any artist in this category. Getting a subscription or onboarding becomes rapid when you have a social media account. You can also create an account with a different username and password. You may need to have an email address to create an account. Here are items that Gumroad usually sells; e-books, software, videos, and physical products.

The site is that you can preorder for items that are yet to be made or paid for sold items. The rules are quite strict when it comes to payment processing systems. They are usually processed every Friday once the funds have surpassed the ten-dollar threshold. If you reach the threshold on Monday, payment will be processed only.

All items are sold in USD, but the products have price tags in GBP. It also supports PayPal. Funds are transferred to your bank account when you live in the USA, Australia, Canada, and the UK.

What is Payhip?

Payhip refers to an e-commerce platform that makes it possible for different creators to have a chance of selling their goods to extra followers. Its function in a similar manner as Gumroad. However, it’s not possible to sell preorders, as with Gumroad. With Payhip, you have a chance of selling both physical and online products. It also provides one with the opportunity of being a member when it comes to digital software goods.

It starts with hosting your products on the Payhip platform, after which you can immediately start selling your products. However, the payment and delivery process is handled by Payhip. Despite the fact t that you will not have your custom domain like Gumroad, the payment options for Payhip are encouraging, especially for new product producers.

Once your product gets sold, you will receive the payment after a week. The best thing is that Payhip supports Stripes and PayPal payments. Payhip will also promote good online through the use of social media.

Payhip also features a pricing plan that is done monthly. They also feature three types of payment options. However, the payment features are all the same, only the transaction fee. The higher you can subscribe, the lesser the Payhip changes.

Payhip should be your first choice if you wish to gain:

  • Instant payments with no payment threshold.
  • Transparent pricing methods.

Difference Between Gumroad and Payhip

  • The significant difference between Gumroad and Payhip arises from the payment plans. With Gumroad, the payment is processed weekly on every Friday. Payhip on the same will make the payment instantly.
  • Gumroad makes use of bank transfers or PayPal as payment options, while Payhip makes use of stripes and PayPal.
  • Gumroad makes it possible for preorders while such an option is not available with Payhip.
  • Gumroad is not a better option for brand promotion when compared to Payhip, which offers online brand promotion through social media.
  • Gumroad charges are based on the USD. Payhip, on the other hand, charges in GBP.


These online markets have been in existence for more than ten years. However, as much as they have years of foundation, they still have to improve appropriately. This includes the customization aspects as a seller would wish to launch their product quickly.

Also, the prices have to be revised, with Gumroad having a more complicated price plan when compared to Payhip. These platforms also boost many customers, with Gumroad promoting having made over $272mn and Payhip having not less than 1.3 lakh clients on their platform.

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