Find out how offering FPX as a payment option can benefit your online store in Malaysia
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As Malaysia's e-commerce landscape continues to evolve rapidly, businesses are looking for robust, secure, and efficient ways to process payments. Financial Process Exchange (FPX), a payment gateway system by PayNet, has emerged as an exceptional solution in this context. In this article, we will explore the advantages of FPX for Malaysia's e-commerce stores and compare its benefits to other popular payment methods, such as credit/debit cards, e-wallets (like GrabPay and Touch n Go), and PayPal.
1. Real-time Transactions: FPX supports real-time payments, enabling instant order confirmation for customers and immediate fund availability for merchants. This speed outperforms most credit/debit card transactions, which can often take longer to process.
2. Broad User Base: FPX is backed by over 29 banks in Malaysia, including Maybank, CIMB, Public Bank, and others, enabling businesses to reach a vast customer base that these banks cater to. Unlike e-wallets, which require users to download an app and set up an account, FPX uses existing bank accounts, making it more accessible to a broader range of consumers.
3. High Transaction Limits: FPX has high transaction limits, going up to RM1,000,000 for individuals and RM10,000,000 for corporations. In comparison, e-wallets like GrabPay and Touch n Go typically have much lower transaction limits, which can be restrictive for higher-value purchases.
4. Security: FPX transactions are highly secure, with two-factor authentication mandated by the participating banks. This security level is higher than what is typically offered by credit/debit card payments and can be more secure than e-wallets and PayPal, depending on the user's settings.
5. Lower Transaction Costs: FPX typically charges lower transaction fees compared to payment gateways like PayPal. This lower cost can significantly impact a merchant's bottom line, particularly for businesses with a high volume of transactions.
While debit/credit cards, e-wallets like GrabPay and Touch n Go, and PayPal are widely used payment options, FPX provides certain benefits that these methods often do not.
Debit/Credit Cards: Card transactions often involve several parties, including the issuing bank, the card network, and the acquiring bank, resulting in higher fees. Also, the risk of chargebacks is a significant concern for merchants. In contrast, FPX transactions are direct bank-to-bank, lowering fees and eliminating the risk of chargebacks.
E-wallets: While e-wallets offer convenience, they require users to preload funds or link a bank account or card, creating an additional step for the consumer. Also, transaction limits for e-wallets are often lower than what FPX offers. While e-wallets may provide promotional offers to attract users, FPX's broader reach and higher transaction limits can offer more substantial long-term advantages.
PayPal: As a well-established global payment gateway, PayPal offers a trusted brand and international reach. However, PayPal's fees are generally higher than FPX's, and payments can take longer to process. Additionally, FPX, being a local payment gateway, is more aligned with Malaysian banking habits, which could lead to higher conversion rates for local businesses.
Here's a list of a few foreign and local Malaysia payment gateways which we are intgrated with which offer FPX as a payment method option for online store's here in Malaysia:
You might also be interested in BNPL or Buy Now Pay Later, which is gaining popularity among online shoppers, especially among Malaysia webstore merchants.Conclusion:
As Malaysia's e-commerce scene grows, the FPX provides a compelling option for merchants. With its real-time transactions, broad user base, high transaction limits, and robust security, it can give e-commerce stores an edge in a competitive landscape.
Click this link to see a comparison chart of popular Malaysia payment gateways.