Top 12 Payment gateways In Malaysia That You Need To Know About

Malaysia is a rapidly growing economy, and businesses are starting to notice. However, with the growth comes increasing complexities, as companies must deal with different payment solutions and gateways. This is especially important as businesses today operate in a more complex environment with multiple currencies and cross-border sales. 

In this blog post, we will discuss the current payment landscape in Malaysia and list 12 of the best payment gateways currently available. We will also discuss some key criteria businesses should look out for when choosing a payment gateway.

Current Payment Solution Landscape in Malaysia

With a mobile and internet penetration rate of over 80 percent and an average population age of 28.7, Malaysia is among the fastest-growing digital economies in Southeast Asia. The payment industry's paradigm has shifted substantially to suit a new generation of consumers. Smartphones (E-Wallets) are replacing traditional wallets.

It is estimated that the digital wallet transactions in 2020 were 1.4 billion in transactions and RM10.6 billion in value. COVID-19 only accelerated this pace further into digitization. The Movement Control Order (MCO) and #StayAtHome as the new normal changed the way Malaysia does business. While it induced a temporary setback, it also spurred a ripple effect on the growth of M-Commerce, thereby leading to more cashless payments.

Over 70% of Malaysian consumers today prefer to visit merchants that accept digital payments over those that only accept cash. There will undoubtedly be continued development of a broader range of self-checkout options. As consumers become more comfortable linking their payment cards with their e-Wallets, a no-touch and more efficient payment ecosystem will be created.

Malaysian companies across the ecosystem-including traditional banks, financial services firms, newer fintech challengers, and established companies in adjacent sectors such as big tech and telecommunications-sought various avenues for expansion. A fundamental change in how the market approaches commerce affected the success of certain players over others.

Criteria to Look Out For Payment Gateways in Malaysia

When you are looking for a payment gateway in Malaysia, there are several criteria that you need to keep in mind. These include:

Reliability: The payment gateway must be reliable and able to handle high volumes of transactions without any issues.

Supported currencies: The payment gateway should support the major currencies used in Malaysia, such as the Malaysian Ringgit (MYR) and the US Dollar (USD).

Payment options: The payment gateway should offer various payment options, such as credit cards, debit cards, and online banking.

Market integrations: The payment gateway should be able to integrate with your existing e-commerce platform or shopping cart.

Security: The payment gateway should be secure and have robust fraud prevention measures.

Pricing and other fees: The payment gateway should be transparent about its pricing and any additional costs that may apply.

12 Best Payment Gateways in Malaysia

In Malaysia and anywhere else, a successful e-commerce business is built on a foundation of solid payment processing. Fast, secure, and easy-to-use payment processing is essential for a smooth online customer experience—likely to drive retention and customer growth.

Payments are essentially the lifeblood of an eCommerce business, and choosing the right payment gateway is critical to the success of your online business. Numerous payment gateway options are available, and choosing the right one can be a daunting task. However, some key areas to consider will help you make the best decision for your business.

• First, consider the fees associated with each gateway.
• Second, look at each gateway's features and decide which are most important for your business.
• Third, evaluate the security and fraud protection offered by each gateway.
• And finally, consider the ease of use for you and your customers.

By considering all of these factors, you can choose a payment gateway that will provide a positive experience for you and your customers. We have compiled a list of 12 of the best payment gateways in Malaysia.

1) iPay88 

iPay88 is a leading online payment gateway provider in Malaysia, offering both local and international payment options. iPay88 is an excellent option for businesses looking for a reliable and feature-rich payment gateway. However, they should be aware of the fees associated with using this service.

Pricing and Other Fees

Setup Fee 

• SME – RM 488
• Startup – 488

Annual fee

• SME – RM 500
• Startup – Zero Fee Lifetime

Charges on Refunds: Information Available on request

Commission per transaction.

• SME – 2.9%
• Startup – 3.5%

Accepted Payment Methods 

• Visa, MasterCard Credit/Debit Card
• FPX, Malaysia Online Bank Transfer Alliance Online, CIMB Clicks, Am Online, installments Online, EON Online, RHB Online
• Other Payment Methods: PayPal, Grabpay, TouchnGo pay, Boost Wallet, KipplePay, Vcash Wallet.

Supported Currencies

Only RM (other currencies, including USD, are supported in iPay88 multi-currency gateway)

Approvals & Onboarding Time

• For internet bank transfer: 7 – 14 working days
• For credit card gateway: 1 - 2 months
• eCommerce Platform Integration: Shopify, EasyStore, WooCommerce

2. Worldpay

Worldpay is a leading global payment processor that offers many features and services. On the other hand, dealing with Worldpay is like dealing with any large provider. While its customer service is hit-or-miss, especially if you have account issues, its payment gateway products are highly reliable.

Pricing and Other Fees

Setup Fee: Free

Annual fee:

• Free-Pay as you go Plan 
• Monthly subscription plan at £19.95 per month

Charges on Refunds: No extra charges

Commission per transaction: 2.75% + £0.20

Accepted Payment Methods: 

• Credit/Debit CardVisa, MasterCard, Discover American ExpressMalaysia Bank Transfer
• Other Payment Methods Contactless, Apple Pay, Wallet Galore, Amazon pay

Supported Currencies: up to 120 International Currencies

Approvals & Onboarding Time: 5 working days

eCommerce Platform Integration: Magento, BigCommerce (hosted), WP Commerce, Shopify, WooCommerce.

Good Read: 10 Best Payment Gateways in Bangladesh

3. PayPal

PayPal is one of the most popular and easily recognizable payment gateway providers. The good news is that it's also one of the simplest. All you need is a PayPal account, and you're ready to start processing payments on your website. In Malaysia, PayPal is not commonly used due to its high processing costs and the lack of locally favored payment solutions. There are only three ways to accept payments: PayPal, credit cards, and debit cards.

Pricing and Other Fees

Setup Fee: Free

Annual fee: Free

Charges on Refunds: No extra charge

Commission per transaction

• Domestic 3.9% + RM2.00
• Cross border 4.4% + Fixed fee based on the currency received

Accepted Payment Methods: Credit/Debit Card Visa, MasterCard, Discover American Express Malaysia Bank Transfer

Supported Currencies: 24 Currencies (USD, RM, Euros, GBP, Yen, SGD, d more currencies)

Approvals & Onboarding Time: Immediate

eCommerce Platform Integration: Magento, Shopify, EasyStore, BigCommerce WooCommerce, and more.

4. Billplz

Another popular and rapidly growing payment gateway in Malaysia is Billplz, which is particularly popular for the low transaction fees and the wide selection of payment methods it offers. Among Billplz's many advantages is its PayPal integration. Additionally, Billplz integrates with EasyStore, a well-known local eCommerce platform.

Pricing and Other Fees

• Setup Fee: Free
• Annual fee: Free
• Charges on Refunds
• The commission per transaction: RM 1.50 per transaction

Accepted Payment Methods

• Visa, MasterCard Credit/Debit Card 
• Malaysia Online Bank Transfer Alliance Online, Am Online, CIMB Clicks, EON Online, Hong Leong Online, Maybank2u, RHB Online, FPX

Supported Currencies: RM only

Approvals & Onboarding Time: 2 weeks

eCommerce Platform Integration: EasyStore, WooCommerce

5. Rapyd

With Rapyd, you can accept and disburse funds using various payment methods in Malaysia to focus on growing your business. It’s a favourite choice of many Malaysian citizens to transfer funds inter-banks and abroad.  It’s easy to use user-interface makes it even more convenient for the user to transfer funds. This payment gateway offers fintech services within the app itself, making it better than any other local payment method.

Pricing and Other Fees: 

Setup Fee - No set-up fees

Annual fee - No annual charges

Charges on Refunds - No charges

Commission per transaction - 3.35%

Accepted Payment Methods: 900+ local payment method like debit and, cash, transfers instant, payments bank, local ewallets, etc  

Supported Currencies: 103+ currencies

Approvals & Onboarding Time: 1-2 days

eCommerce Platform Integration: EasyStore, Magento, WooCommerce, etc

6. Dlocal

Dlocal is a wonderful payment gateway, hosting various local payment methods. The payment platform offers the facility to make payments via credit cards, digital wallets, bank transfers etc - all at one integrated platform. The gateway is available in a variety of countries, allowing users to perform international transfer conveniently. Moreover, it's less complicated dashboard, makes the overall user experience convenient. 

Pricing and Other Fees: 

Setup Fee - No setup fees

Annual fee - No Annual fees

Charges on Refunds - No charges

Commission per transaction - Free of cost

Accepted Payment Methods: ARS, BRL, CLP, COP, CRC, DOP, USD, MXN, PAB, PYG, PEN, UYU

Supported Currencies: USD/EUR, etc

Approvals & Onboarding Time: 1-7 days

eCommerce Platform Integration: EasyStore, Magento, BigCommerce, WooCommerce, etc

7. Stripe

Dlocal is a wonderful payment gateway, hosting various local payment methods. The payment platform offers the facility to make payments via credit cards, digital wallets, bank transfers etc. - all in one integrated platform.  The gateway is available in a variety of countries, allowing users to perform international transfers conveniently. Moreover, its less complicated dashboard makes the overall user experience convenient. 

Pricing and Other Fees: 

Setup Fee - No setup charges

Annual fee - No annual charges

Charges on Refunds - None

Commission per transaction - No commission

Accepted Payment Methods: Supports all major methods

Supported Currencies: 135+ currencies

Approvals & Onboarding Time: 1-2 days

eCommerce Platform Integration: Magento, Shopify, EasyStore, BigCommerce WooCommerce, and more.

8. eGHL

eGHL Systems Berhad (eGHL) was founded in March 2013. It provides a safe and easy-to-use online payment solution for internet companies in Southeast Asia, including card and non-card payment options. eGHL is regulated by the Central Bank of Malaysia as a non-bank acquirer under Malaysia's Financial Services Act 2013.

The eGHL payment gateway has full Level 1 PCI compliance and is built with cutting-edge technology.

Pricing and Other Fees

Setup Fee:

• Starter – RM 399
• Small Biz – RM599

Annual fee

• Starter – 1st year waived; 2nd year onwards RM 399Small 
• Biz – 1st year waived; 2nd year onwards waive if transaction volume exceeds RM60000 per year)

Charges on Refunds

The commission per transaction:

• Starter – 2.8%
• Small Biz – 2.5%

Accepted Payment Methods

• Visa, MasterCard Credit/Debit Card 
• Malaysia Online Bank Transfer Maybank2U, RHB Online, HL Online, Standard Chartered, Alliance Online, CIMB Clicks, Bank Islam, UOB, PbeBank, Ambang, Affin Online, Bank Muamalat, Bank Rakyat, OCBC, KFH 
• Other Country Debit

Supported Currencies: Only RM

Approvals & Onboarding Time: 7–14 working days

eCommerce Platform Integration: EasyStore, SiteGiant, WooCommerce.

9. 2C2P

Founded in 2003, Payment Gateway provider in Asia. It is a regional leader in integrated payments solutions with a direct presence across 11 countries in Southeast Asia, South Asia, and the Middle East.

‍Pricing and Other Fees

Setup Fee:

• Starter – RM 500

Annual fee

• RM 500

Charges on Refunds

The commission per transaction:

• 2.5% – 3% per transaction for credit cards
• RM1.50 flat rate for bank transfers

Accepted Payment Methods

• Visa, MasterCard
• Credit/Debit CardMalaysia Online Bank Transfer
• Alliance Online, Am Online
• CIMB Clicks, EON Online
• Hong Leong Online, FP
• Maybank2u, RHB Online

Supported Currencies: RM (MYR), US, Singapore, Hong Kong $, Thailand

Approvals & Onboarding Time: 1-2 weeks

eCommerce Platform Integration: Ruby, Java, Python, PHP.

10. Asiapay

Asiapay is a premier digital payment gateway in Asia, offering integrated, advanced and cost-effective digital payment services and solutions to individuals, e-businesses and banks worldwide. Our integrated payment solutions cover debit cards, over-the-counters, etc. They have headquarters across 13 operating offices in Asia. Compared to other payment gateways in Malaysia, it has captured a comparatively larger customer base.

Pricing and Other Fees: 

Setup Fee - 2000 RM

Annual fee - 1200 RM

Charges on Refunds - No charges

Commission per transaction - None

Accepted Payment Methods: Visa, JCB, Mastercard, American Express, Alipay, etc

Supported Currencies: All major asian currencies

Approvals & Onboarding Time: 1-2 days

eCommerce Platform Integration: WP Commerce, Shopify, WooCommerce.

11. Adyen

A wonderful payment gateway to support your financial transfers and various banking needs. With the platform, you receive financial management, data facilities and end-to-end payments, everything at one wonderful place. Moreover, the platform allows you to accept payments, control your finances and protect your revenue, as an individual or business. The best part, it's a super economic gateway and won't leave a dent on your pocket.

Pricing and Other Fees: 

Setup Fee - No setup fees

Annual fee - No annual charges

Charges on Refunds - €0.20

Commission per transaction - €0.10

Accepted Payment Methods: 7-Eleven Malaysia, Affirm, Afterpay & Clearpay, BankAxept, Boleto, etc.

Supported Currencies: AED,  BGN, AUD, BHD, CAD, BRL, CHF, CZK, CNY

Approvals & Onboarding Time: 1-2 days

eCommerce Platform Integration: Magento, BigCommerce, WooCommerce, etc

12. Directa24

Another amazing payment gateway in our list is Directa24. It offers the best payment solutions in Asia, Africa, India and Latin America. It's a single integration, giving you access to almost every international market.  The best thing is that all the transactions are safe and secure with them. The least you have to worry about is insecurity in terms of transaction. They support a wide range of payment options, making it a favourite choice of so many people.

Pricing and Other Fees: 

Setup Fee - No setup charges

Annual fee - No annual fee

Charges on Refunds - Nothing is charged

Commission per transaction - None

Accepted Payment Methods: Various local payment methods like cards, ewallets, bank transfers, and cash 

Supported Currencies: EUR/USD

Approvals & Onboarding Time: 1-7 days

eCommerce Platform Integration: WooCommerce, Magento, BigCommerce, Shopify, etc

Local Payment Gateways and the Rising Complexity for Businesses

The ongoing epidemic has aided in speeding up the adoption of BNPL in several ways. First and foremost, as commerce increasingly occurs online, individuals seek alternatives to manage their money better. The traditional banking system is not as equipped to handle the growing complexities of businesses. This has led to a search for more efficient and secure payment gateways.

Therefore, the BNPL payment option enables consumers to avoid increasing credit cards and other debts as many BNPL solutions offer interest-free with no hidden costs. By enabling customers to control their spending, BNPL can help avoid the debt trap that so many people find themselves in. With interest-free periods and transparent terms and conditions, BNPL offers a much better deal for consumers than traditional forms of credit.

And by keeping track of payments and providing reminders, BNPL can help customers stay on top of their finances and avoid late fees. For these reasons, BNPL is a great way to help consumers avoid debt. In Malaysia, zero-interest accessible payment services are not new. Many credit cards and financial institutions already offer such services for purchasing electrical devices, mobile devices, furniture, jewelry, and more.

Essentially, these services allow consumers to purchase and pay for items over time without accruing any interest. This can be a great way to finance big-ticket purchases or spread the cost of an item over a more extended period.

How inai Helps You Address Multiple Payment Gateway Integrations in Malaysia?

The inai platform is uniquely designed to integrate more than 300+ international payment methods, including those widely popular in Malaysia. Our payment platform provides a single source of integration and connects to multiple payment gateways and numerous local payment methods.

Inai's developer-friendly payment integration model helps support flexible business models, including e-commerce and other digital marketplaces. Besides supporting seamless pay-ins and pay-outs, our platform helps business owners improve their conversion rates during the checkout process by offering a localized checkout experience (be it payment methods, language, or currency).

Fully customizable front-end and best-in-class CXO dashboards ensure alignment with your brand design and assist you in refund management and assessing failed transactions. Every checkout option we provide securely captures payment method data while fully embedded on your site or in your app. With customizable integration and Enterprise Grade security built-in, our technology makes PCI-DSS and GDPR compliance simple.

Conclusion

The conducive adoption of various payment methods in Malaysia has created a healthy competition in the digital payment method market. Local providers such as MOLPay, iPay88, and AirPay offer exemplary services at reasonable rates. However, they might not be able to provide the same customization, flexibility, or international coverage as some of the more established global providers. When selecting a payment gateway for your business, it is crucial to consider your needs and objectives.