Difference Between Gumroad and Payhip

Gumroad is an online store building platform that helps makers to sell their products hassle-free. Purchasing and selling are made easy using Gumroad.

Payhip is also an e-commerce platform that helps product creators to sell it directly to customers. Ideally, you might have to upload the product and start selling using social media platforms or using your website too.

Comparison Table Between Gumroad and Payhip

Parameters of ComparisonGumroadPayhip
Time to OnboardGumroad is a touch faster to onboard than Payhip.Payhip is slightly slower than Gumroad.
Products SoldDigital as well as Physical products and also takes pre-orders for the products to be made and sold later.Only digital and physical products
Custom DomainThe facility is available.The facility is not available.
Payment ProcessingGumroad processes the payment only when the payment threshold of $10 is reached.There are no threshold criteria with Payhip.
Payment durationPayment is processed every Friday.Once the product is sold, you shall receive the funds in a week.

What is Gumroad?

Gumroad is an e-commerce platform that helps product builders to sell their products directly to their customers. The company was established in the year 2011.

  1. Musicians
  2. Movie Makers
  3. Software developers

And anyone who comes under this category. If you have a social media account, creating a subscription or onboarding to Gumroad becomes rapid.

Gumroad essentially sells

  1. E-Books
  2. Videos
  3. Software
  4. Physical Products

The good news is, the consumers can pre-order the items from the seller. You are also paid for it once the product is sold.

Gumroad has a strict procedure for the payment processing system. The payment is processed every Friday. Not only that, the payment threshold must reach $10 for the process to happen.

Most importantly, all the items are charged in USD, while the products are also labelled with GBP. Moreover, Gumroad supports Paypal and only PayPal.

However, you shall receive your funds in your bank account if you live in the below-mentioned countries.

  1. USA
  2. UK
  3. Australia
  4. Canada

What is Payhip?

Payhip is an excellent e-commerce platform that allows product creators to sell their products to their followers. Incidentally, they function the same as Gumroad.

You can host your product on Payhip’s platform and start selling it. The payment processing and the product delivery is done by Payhip.

Yes, once your product is sold, you shall receive the payout in a week. Payhip supports Paypal and Stripes for payments. Payhip promotes the product online. It uses social media websites to promote the business.

Payhip has a monthly pricing plan. They have three types of payment plans. The features remain the same for all three plans. However, the transaction fee differs from plan to plan.

You can readily choose Payhip if you are looking for

  1. Instant payout without any payment threshold
  2. Transparent price plans

Main Differences Between Gumroad and Payhip

  1. Gumroad is not as impressive as Payhip for brand promotion through online social media platforms.
  2. Gumroad charges customers in USD, while Payhip can charge in GBP.


The Online store builders have been in the market since 2004. Though these platforms are in the market for close to 10 years, they have still opportunities to improvise on. Most importantly, the customization part.

Also, the price plan needs to be revised as well. Gumroad has more complicated price plans compared to Payhip. The excellent benefit the seller can relish is that they can avoid the Digital VAT.

  1. https://www.theseus.fi/handle/10024/108645
  2. https://link.springer.com/chapter/10.1007/978-1-4842-2829-6_7
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