Created: December 29, 2022

Online Payment Gateway Providers in Malaysia

Maria Zaichenko

Maria Zaichenko

Head of Marketing Department

FinTech
Online Payment Gateway Providers in Malaysia

The rise of online banking and payments has revolutionized the way consumers conduct their business transactions. It has also greatly impacted the traditional banking industry. As more companies in Malaysia open their own e-commerce websites, the country's e-commerce sector is expected to grow even more.

A payment gateway is an essential part of any online business in Malaysia. It can help you accept payments from your customers.

It is very important that you choose a reliable and secure payment gateway for your online business. These payment gateways can help you run an online business, such as selling products or services through an e-commerce website.

In this article, we will talk about the cashless payment methods in Malaysia, various types of payment gateways in Malaysia, and provide payment gateway comparisons in Malaysia.

Malaysian popular payment methods 

In Southeast Asia, Malaysia is considered to be one of the fastest-growing digital countries. The country's population is 32.98 million, with over 89.6 percent mobile internet penetration.

The payment industry is now more focused on the new generation of consumers due to the rise of smartphones. Traditional wallets are no longer able to meet the needs of the new generation of consumers with smartphones and E-Wallets. According to statistics, over 90% of Malaysians use mobile devices to access the internet. The e-commerce market is expected to reach US$30 billion by 2025.

Let's look at the top online payment methods in Malaysia.

Credit cards

With a credit card, customers borrow money from a bank and agree to pay the interest on the borrowed funds in the future. According to the Global Payments report, over 27% of all sales transactions in Malaysia are made through credit cards, and 19% of e-commerce transactions are made through them.
Payment gateways are commonly used by banks in Malaysia to facilitate credit card transactions. They have partnered with various payment brands such as Mastercard, Visa, American Express, and Maestro. Over 200 countries have accepted Mastercard and VISA.

Bank transfers

A bank transfer transaction is a type of financial transaction that allows businesses to send and receive funds from one bank to another. It's very secure as it allows them to send and receive unlimited amounts of money.
In Malaysia, bank transfers are preferred for business-to-business (B2B) fund transfers. They account for over 30% of e-commerce transactions.

Top Banks in Malaysia:

Digital wallets

In total, digital wallets have contributed to over 15% of all transactions made by the country's population. This demonstrates the rising popularity of mobile wallet usage. Some of the popular local E-Wallets are here:

DuitNow

With DuitNow, users can send and receive money without an account. It is a real-time fund transfer service that allows people to send and receive money. Through its QR feature, DuitNow allows users to make payments using their mobile devices. The payment details are stored in a QR code, which users need to scan to process the transaction. Malaysia is one of the countries where QR payments are generally feasible.

Buy Now Pay Later (BNPL)

Through a BNPL, consumers can purchase products with just a small down payment. The rest of the payments are made in installments without interest. This method is very popular among young people as it allows them to easily afford the products they purchase. Unlike credit cards, the payments made through this method don't have to be interest-free.
According to estimates, the total amount of money that will be spent on e-commerce in Malaysia through BNPL will triple by 2025. Some of the major platforms that provide this type of service include myIOU, Atome, and Pine Labs.

Financial Process Exchange (FPX)

Malaysia-based payment option Financial Process Exchange allows customers to conduct transactions online using their bank credentials. It is jointly owned by several financial institutions, including Bank Negara Malaysia. The process of making payments through FPX is carried out through the bank's online banking applications. In this way, the customer's experience with the payment process is directly affected by the environment of their bank.
The FPX platform is an intuitive and user-friendly platform that enables people to conduct their banking transactions without going through the endless steps of online transactions.

Malaysia payment gateways benefits you should know

One of the most critical factors that a merchant needs to consider when it comes to running an online business is a payment gateway. It allows them to accept payments from customers in various payment modes, such as credit cards, bank transfers, and crypto.

Stacking payment gateways can help you eliminate or reduce some of the weaknesses. This process works by using multiple payment gateways on your website to increase the number of products that your customers can purchase.

Besides protecting the card information of customers, payment gateways also help prevent unauthorized access to the funds of a merchant.

Having more payment options will allow customers to make purchases more easily and reduce the friction at the checkout process.

Criteria to look out for in the best payment gateway in Malaysia

Malaysia online payment gateways comparison

We have created a table to help you navigate through the various payment gateway providers in Malaysia that are available for your business.

Most of them are local, but there are also prominent brands - PayPal and Stripe.

iPay88

IPay88 is a leading payment gateway for Southeast Asian merchants, such as those in Malaysia, the Philippines, Thailand, Singapore, and Indonesia. It processes all major credit card and e-money transactions, and it allows merchants to transfer their funds to their local bank accounts. It also offers two subscription plans, namely the SME Plan and the SOHO Plan.

IPay88's comprehensive feature suite is ideal for both small and large businesses, as it can handle various types of transactions. Its ability to support e-commerce businesses and marketplaces makes it a preferred choice for both startups and large organizations.

Services E-commerce payment, Retail payment, O2O, Payouts Support.
Setup Fee iPay88 SME Plan – RM 488
iPay88 Individual/SOHO Plan – RM 488
Annual Fee SME Plan: RM500 per year
SOHO Plan: FOC
Supported currencies RM only (other currencies go through iPay88 multicurrency getaway)
Minimum amount of withdrawal RM 100

Online banking accepted by iPay88

Affin Bank

Agro Bank

AmBank

Alliance Bank

Bank Islam

Bank Rakyat

Bank Muamalat

BSN

CIMB Clicks

HongLeong Connect

HSBC

Kuwait Finance House

Maybank

OCBC Bank

RHB

Public Bank

Standard Chartered

UOB

E-Wallet accepted by iPay88

Alipay

Boost

Grab Pay

MAE

MCash

NETS

Presto Pay

Setel

Shopee Pay

Touch'nGo

Union Pay

WeChat Pay

Credit & debit cards accepted by iPay88

Visa

MasterCard

American Express

Union Pay

eGHL

EGHL Systems was established in March 2013 to provide a secure payment solution for Southeast Asia. It allows merchants to accept credit and non-card payments through its network. It complies with Malaysia's Financial Services Act and is regulated by Bank Negara Malaysia.

Services Credit Card, Online Banking, E-Wallet payments, O2O, Payouts Support.
Setup Fee RM 499
Annual Fee RM 25.00 for transaction volume less than RM 15,000 per/month
Waived if monthly volume exceed RM 15,000
Supported currencies Over 48 currencies
Minimum amount of withdrawal No minimum

Credit and debit cards accepted by eGHL

Visa

MasterCard

American Express

JCB

Union Pay

Online banking accepted by eGHL

FPX

AFFIN BANK

Agro Bank

Alliance Online

AmBank

Bank Muamalat

Bank Islam

Bank of China

BNP PARIBAS

BSN

CIMB Clicks

CITI

Deutsche Bank

HongLeong Connect

HSBC

Bank Rakyat

Kuwait Finance House

Maybank

OCBC Bank

PBe

RHB

Standard Chartered

UOB

E-Wallets & BNPL accepted by eGHL

Boost

Grab Pay

MAE

Touch'nGo

Shopee Pay

MCash

Razer Merchant Services (RMS)

With a wide range of payment methods and payment processing options, RMS Merchant Services is a leading provider of payment solutions in Southeast Asia. It enables merchants to accept credit and debit cards, as well as E-Wallets and online banking. It also provides online payment services for some of the region's most popular brands, such as Starbucks, Amazon, Expedia, and Grab.

With a proven track record of providing high-volume payment processing services, RMS Merchant Services is able to offer two payment gateway plans: the RMS Premium and the RMS Lite.

Services Credit Card, Online Banking, E-Wallet payments, Payouts Support.
Setup Fee RMS Premium: RM 400
RMS Lite: RM 499
Annual Fee RMS Lite: RM 99 (waived for the first year)
RMS Premium: RM 499
Supported currencies RM only
Minimum amount of withdrawal RM 100

Payment methods and credit/debit cards accepted by Razer Merchant Services (RMS)

Visa

MasterCard

American Express

GPay

Apple Pay

Pay with Crypto

Huawei Pay

Samsung Pay

Online banking accepted by Razer Merchant Services (RMS)

FPX

Maybank

CIMB Bank

AmBank

BSN

Bank Islam

Hong Leong Bank

RHB

Bank Muamalat

Affin Bank

Affin Islamic

Public Bank

UOB

Bank Rakyat

Standard Chartered

Alliance Bank

HSBC

OCBC Bank

Kuwait Finance Houce

E-Wallets accepted by Razer Merchant Services (RMS)

Grab Pay

Boost

MAE

Shopee Pay

WeChat Pay

Razer Cash

Eleven

99 Speedmart

KK Buka Jam

Atome

PayLater by Grab

myIOU

pace

MyDebit

DuitNow

Touch'nGo

Billplz

One of the most popular payment gateways in Malaysia is Billplz, due to its low transaction fees. It also allows users to accept various types of payments.

Billplz's most notable feature is its integration with PayPal, which allows users to receive payments from the company without having to pay a special transaction fee. This is applicable to both foreign and domestic transactions. Also, it allows users to accept payments through EasyStore, a well-known local e-commerce platform.

Services Credit Card, Online Banking, E-Wallet payments, Payouts Support.
Setup Fee Free
Annual Fee Free
Supported currencies RM only
Minimum amount of withdrawal N\A

Payment methods accepted by Billplz

Maybank

Public Bank

OCBC Bank

Bank Islam

FPX

PayPal

Visa

MasterCard

Union Pay

2C2P

senangPay

paydee

Razer Cash

Touch'nGo

Grab Pay

Boost

Stripe

With its powerful payment processing tools, which are built on a flexible and modular platform, Stripe is able to help businesses run their online businesses smoothly. It can support various types of transactions, such as credit cards, payments through local and international cards, and in-app checkouts. Its ability to create a variety of forms and customize them with pre-built components makes it a great choice for small and large organizations.

With the ability to charge recurring payments, you can easily streamline your payments with the help of Stripe's recurring billing feature.

At Mad Devs, we use Stripe & Stripe Connect to enable billing for our products. Here is the article to describe some of our lessons learned so that when you integrate Stripe Connect for your business, that can save you time and resources.

Services Online payments, Tax, Invoicing, Billing.
Setup Fee Free
Annual Fee Free
Supported currencies RM + Up to 100 currencies
Minimum amount of withdrawal RM 5

Paypal

PayPal creates better ways to manage and move money, and offers choices and flexibility when sending payments, paying or getting paid. PayPal is committed to democratizing financial services and empowering people and businesses to join and thrive in the global economy. The popularity of PayPal has largely been due to the ease and security that it provides. In PayPal, you pay only when you sell. In this way, you are protected.

Services Credit Card, Online Banking, E-Wallet payments, Email & Online invoice.
Setup Fee Free
Annual Fee Free
Supported currencies RM + 23 more currencies
Minimum amount of withdrawal RM 40

To Wrap Up

Today, payment gateways are convenient and effective techniques that help businesses manage their finances more easily. We hope that this list will help you find the best payment gateways in Malaysia.

If you have any other questions, please feel free to contact us. We will be happy to help you as soon as possible. 

Before you leave, you can also read our article about Leading Payment Gateways in Vietnam to Start Your Business.