Payhip lets you sell digital products with no monthly fee. You list your course, set a price, and Payhip takes 5% of each sale on the free plan. That's half of what Gumroad charges, and it comes with a feature most simple checkout tools skip entirely: automatic EU VAT handling. For course creators selling internationally, that alone can save hours of compliance headaches every quarter.
What you’ll walk away with:
- A course product with basic lesson structure (text, video, file downloads)
- Automatic EU VAT calculation, collection, and remittance on every sale
- A built-in affiliate program to expand your reach at no extra cost
- Direct payouts through Stripe or PayPal — Payhip doesn't hold your money
Why Payhip for course sales
The core pitch is simple: sell digital products without paying a monthly fee. Unlike Gumroad, the cut is 5% instead of 10%, and Payhip handles EU VAT automatically. If you sell a $79 course to someone in Germany, EU law requires you to charge and remit VAT at the German rate. Payhip calculates the correct VAT, adds it to the buyer's total, collects it, and files it on your behalf. Your listed price stays the same.
Step-by-step: Selling your course on Payhip
Create your Payhip account
Sign up at payhip.com. The free plan includes unlimited products with a 5% transaction fee. Connect your Stripe or PayPal account for payouts — funds go directly to your payment processor, minus the Payhip fee.
Set up your course product
Create a new product and select "Online Course." Payhip gives you a basic course builder where you can add lessons with text, embedded video, and downloadable files. Organize material into sections with clear, descriptive titles. You can also choose "Digital download" if your course is simpler.
Configure your checkout
Payhip's checkout is clean and mobile-friendly by default. Add a cover image, a clear description, and social proof. Enable EU VAT if you sell internationally (on by default for digital products). You can also set up discount codes, limit copies, and add an affiliate program.
Set your pricing
Payhip supports fixed pricing, "pay what you want," and subscriptions. For a standalone course, fixed pricing is simplest. A $100 course nets you $95 minus payment processing. At $3,000/month, you're paying $150 in Payhip fees — still less than Gumroad's $300.
Add Payhip to your website
Every product gets a hosted page on your Payhip storefront. You can also embed a checkout button or overlay widget on your own website. The embed approach keeps buyers in your world rather than sending them to a separate domain.
Promote your course
Share your product link in email newsletters, social media, and community forums. Payhip doesn't have a built-in marketplace, so all traffic comes from your own marketing. Activate the affiliate program to give partners an incentive to promote your course.
Tips for course creators
Use the free plan until the math stops working
The 5% fee is a good deal when starting out. But once you consistently earn more than $580/month, the Plus plan at $29/month with a 2% fee costs you less. Above $1,650/month, the Pro plan at $99/month with zero transaction fees wins. Do the math for your revenue level before upgrading.
Take advantage of EU VAT handling
If even a fraction of your audience is in Europe, enable EU VAT collection. Doing this manually requires VAT One-Stop Shop registration and quarterly filings across 27 member states. Payhip does all of it, on the free plan.
Set up an affiliate program early
Payhip includes built-in affiliate management at no extra cost. Set a commission rate (10-30% is common), share the signup link with colleagues and past students, and let others drive sales. This is especially valuable on a platform with no marketplace discovery.
Limitations
Percentage fees add up
At $2,000/month, you're paying $100 in Payhip fees on the free plan. A platform like Ruzuku charges a flat monthly fee with zero transaction fees — your costs stay predictable as sales grow. The percentage model works when revenue is low. It works against you when revenue is consistent.
Minimal course features
Payhip's course builder covers the basics — text, video, file downloads — but lacks progress tracking, completion certificates, quizzes, drip scheduling, discussion forums, and live session integration. Students get a page of lessons, not a guided learning path.
Analytics limited to sales data
You can see revenue, sales count, and checkout conversion rates. You can't see how far students get through your course, where they drop off, or which lessons they spend the most time on. You know who bought, but not who learned.
Frequently asked questions
How much does Payhip charge per sale?
On the free plan, 5% of every transaction on top of standard payment processing fees. The Plus plan ($29/month) drops it to 2%, and the Pro plan ($99/month) eliminates it entirely. The free plan makes sense when testing or selling at low volume.
Does Payhip handle EU VAT for digital products?
Yes. Payhip automatically calculates, collects, and remits EU VAT on digital sales to European customers. The VAT amount is added on top of your listed price, so your margins stay intact.
Can I build a structured course with lessons on Payhip?
Payhip offers a basic course builder with text lessons, embedded video, and file attachments. It covers the basics, but there's no progress tracking, certificates, quizzes, drip scheduling, or discussion forums.
Related guides
- How to Sell Your Course Using Gumroad — compare Gumroad's 10% fee and marketplace discovery with Payhip's approach
- How to Set Up Course Payments Using Stripe — use Stripe directly for lower per-transaction costs
- How to Optimize Course Checkout Conversion — improve your checkout flow
- How to Create Your First Online Course — complete guide from planning to launch
When you outgrow Payhip
Once students start asking for progress tracking, discussions, certificates, or a more structured learning path, a product page with embedded videos won't be enough. Ruzuku gives you unlimited courses with zero transaction fees, built-in community, progress tracking, and the teaching tools Payhip lacks. Start free and build a course your students actually complete, not just purchase.