“Can an open-source Merchant of Record become the default monetization layer for developers building digital products?”
Polar is an open-source Merchant of Record platform for developers, positioning itself as an alternative to Stripe by absorbing international sales tax liability. The company sits one layer above traditional PSPs — Polar becomes the legal reseller of digital goods, taking on VAT/GST/US sales tax obligations globally, then payouts to sellers via Stripe Connect Express.
Polar processes payments through Stripe and Stripe Connect.
Polar uses Stripe Connect for FX and cross-border payouts.
The Embedded Finance Index 2026 maps 2 layers in Polar's stack: Payments / PSP (Stripe and Stripe Connect); FX & payouts (Stripe Connect).
Polar is founded in 2022 and headquartered in San Francisco, CA, USA.
Get a read on where your own stack stands against Polar and the rest of its category — what they built versus bought, which providers they use, and where the gaps in your own strategy and competitive set actually are.