Is there room for Gumroad competitor?

I would also go for different, not better.

Like, for legal reasons, they don't let people charge money for services. Is there a Gumroad like service that does that?

What is the problem with Gumroad?
What pain points can you help others with?

In general, I would say: there's always room for more. People are different, they want different features, for different reasons. Sometimes, it might just be the design and ux of your site, sometimes it might be a feature, that's not well enough covered by existing players on the market.

But you should have an idea about what you want to be better at.

Have you used gumroad yourself before? What did you use it for? Did it match your expectations, or did you miss anything?

If you think something could be improved, chances are others will think so too.

I like PayHip better.

Yes but I wouldn’t say “better” but you could defiantly build a similar product geared towards another niche Of customers or move the product in a direction different then gumroad. Or from a marketing perspective position it differently.