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Using Pay with Paddle Billing

Paddle Billing is Paddle's new subscription billing platform. It differs quite a bit from Paddle Classic. This guide will help you get started with implementing it in your Rails application.

  • Checkout only happens via iFrame or hosted page
  • Cancelling a subscription cannot be resumed
  • Payment methods can only be updated while a subscription is active

Creating Customers

Paddle now works similar to Stripe. You create a customer, which subscriptions belong to.

# Set the payment processor
@user.set_payment_processor :paddle_billing

# Create the customer on Paddle
@user.payment_processor.api_record

Prices & Plans

Paddle introduced Products & Prices to support more payment options. Previously, they Products and Plans separated.

Subscriptions

Paddle subscriptions are not created through the API, but through Webhooks. When a subscription is created, Paddle will send a webhook to your application. Pay will automatically create the subscription for you.

Configuration

Paddle API Key

You can generate an API key here for Production or here for Sandbox

Paddle Client Token

Client side tokens are used to work with Paddle.js in your frontend. You can generate one using the same links above.

Paddle Environment

Paddle has two environments: Sandbox and Production. To use the Sandbox environment, set the Environment value to sandbox. By default, this is set to production.

Paddle Signing Secret

Paddle uses a signing secret to verify that webhooks are coming from Paddle. You can find this after creating a webhook in the Paddle dashboard. You'll find this page here for Production or here for Sandbox.

Environment Variables

Pay will automatically look for the following environment variables, or the equivalent Rails credentials:

  • PADDLE_BILLING_ENVIRONMENT
  • PADDLE_BILLING_API_KEY
  • PADDLE_BILLING_CLIENT_TOKEN
  • PADDLE_BILLING_SIGNING_SECRET