Payment gateways provide the service to process online payments from customers to merchants securely. When integrated with any ecommerce website, the role of payment gateways is to allow customers to pay for their online purchases using either credit or debit cards or via online banking smoothly.
Here’s a look at some of the best Malaysia payment gateway providers used by the majority of Malaysian online sellers.
You’ll find the best Malaysia payment gateway comparison chart at the later part of this article.
PayPal is well known internationally as it’s widely used by both local and international sellers.
Customers DO NOT NEED to have a PayPal Malaysia account to make payment on a website that is using PayPal as their payment gateway processor.
Customers can just use their credit or debit card when they land on PayPal’s site during the checkout process by clicking the “Pay with credit card” link.
PayPal is a flexible payment gateway Malaysia that is both popular and easy to manage.
PayPal Malaysia does not require any sign up fee or yearly fee to use their online credit card processing Malaysia feature making it highly recommendable for new startups to begin accepting credit / debit card payments from customers.
However, please note that while PayPal is easy to set up and use, their transaction fee is 3.9% + RM2 for credit / debit card online transactions for Malaysian customers whereas international customers buying from you will be charged at 4.4% + USD0.30 per transaction.
However, setting up a PayPal Malaysia account to accept payment is easy and fast.
Just go to PayPal Malaysia’s site and sign up for a business account.
Key in your details and remember to link your PayPal account to your online store to start accepting online payments.
PayPal Malaysia does not offer FPX online banking.
You’ll need to transfer the funds from your PayPal account to your local bank account.
If the amount is less than RM400, there’s a RM3 charge by PayPal. There’s no charge if the amount is RM400 and above.
Braintree is a payment gateway that was acquired by PayPal in 2013 with the goal of propelling the payment platform on a global scale.
All kinds of businesses use Braintree to accept payments in mobile apps and websites as they have experience working with new business models.
Merchants in Malaysia can accept PayPal, Apple Pay, Android Pay, and cards on the Visa and Mastercard networks as long as the cards are enabled for online use.
Please note there’s a RM90 flat rate for chargebacks.
Signing up for a Braintree Malaysia account may take a bit of time as the company requires your business registration details (Malaysian IC, Business Registration Forms, Utility Bills with business registered address, Malaysian Bank Account Statement that is registered with the business, etc) to verify that you’re a valid legal business before opening a Braintree account for you.
The good thing about Braintree is that they offer a lower credit / debit card transaction fee (3.4% + RM2) compared to PayPal (3.9% + RM2) and that all payment is pushed to your local bank account on a daily basis.
And like PayPal, Braintree does not charge any Setup Fee or Yearly Fee at all.
Braintree Malaysia does not offer FPX online banking.
Braintree will automatically push all payment amount to your local bank account on a daily basis with no minimum amount.
iPay88 is one of Malaysia’s leading payment gateway providers.
Their headquarters is located in Kuala Lumpur, Malaysia and they have a presence in Cambodia, Indonesia, the Philippines, Thailand and Singapore.
iPay88 was acquired by NTT DATA, a Japanese system integration company in 2015 and continues to strengthen their presence in the ecommerce and mobile commerce field in the whole of South East Asia.
iPay88 Malaysia offers 3 different plans to meet your business needs.
If you’re only looking for a payment gateway Malaysia FPX feature to accept payment via online banking from customers, then iPay88 comes highly recommended as their current SOHO Plan is FREE with NO SIGNUP FEES, NO YEARLY FEES.
Bear in mind their FPX rate for the SOHO plan is 3.5% or RM0.60 per transaction whichever is higher.
For credit / debit card processing with iPay88’s SOHO Plan, they’ll be using PayPal to process those payments at a lower transaction rate (3.2%) which is better than you using a direct PayPal account (3.9% + RM2 per transaction).
The other 2 plans (SOHO + Credit Card Plan and SME Plan) will be using local Malaysian Banks to process credit / debit cards.
These 2 plans come with a Setup Fee of RM488 along with Credit Card Application Fees of RM900 (waived by iPay88 for selected merchants).
Their SOHO + Credit Card Plan offers credit card (3.2%), debit card (2.8%), UnionPay credit / debit card (3.2%) while FPX is at 3.2% or RM0.60 whichever higher.
iPay88’s SME Plan comes with an Annual Fee of RM500 and offers credit card (2.7%), debit card (2.5%), UnionPay credit / debit card (2.7%) while FPX is at 2.7% or RM0.60 whichever higher.
All plans include Boostpay (0% till end 2018) and Vcash (1.2%) e-wallet features.
iPay88 will pay out on a weekly basis to your local bank account but the minimum amount is your iPay88 account must be RM10 for them to do so.
iPay88 Malaysia claims to have a proven fraud prevention system and monitoring in over 14 years which has resulted in fraud ratio far below the industry threshold.
eGHL was founded in 2013 and functions as an internet payment arm of GHL Systems Berhad.
You’ll notice quite a number of physical card payment terminals in physical stores and retail using GHL as their credit / debit card payment processor.
So it comes as no surprise that the company entered the ecommerce payment gateway market with their internet payment arm, eGHL.
eGHL is a Malaysia payment gateway that offers a secure internet payment solution which covers both card and non-card payment channels for online businesses throughout the South East Asia region.
eGHL offers a lower transaction fee for credit / debit card (2.5% – 2.8%) and FPX payments (2.5% – 2.8% or RM0.70 whichever is higher).
Do take note that there’s a One Time Setup Fee of either RM399 or RM599 depending on the plan you pick.
Coupled with that, there’s a Yearly Fee of RM399 (waived for first year) or RM599 (waived IF annual volume exceeds RM60,000).
eGHL is an excellent payment gateway provider to consider if your business has consistent growing volume to justify the yearly fee while you enjoy lower transaction fee for credit / debit card and FPX payments.
On top of that, eGHL offers AliPay and MCash with the following rates :
One time set up fee: RM300
Transaction fee: 3%
No set up fee
Transaction fee: 0.5%
Payments are pushed to your local bank account on a weekly basis with no minimum amount requirement.
MOLPay is one of the leading payment gateway in South East Asia that has been connecting international brands to consumers across the region since 2005.
MOLPay Malaysia offers a full range of alternative payment methods such as online banking, cash at 7-Eleven (MOLPay Cash), e-wallet and more as their single API serves as a connector for clients to reach all consumers across South East Asia.
MOLPay Malaysia offers a Lite Plan and Premium Plan for ecommerce businesses.
There’s a One Time Setup Fee of RM499 (Lite Plan) and RM400 (Premium Plan) and a Yearly Fee of RM99 (waived for 1st year – Lite Plan) and RM499 (Premium Plan).
Also for Lite Plan, if previous year’s total payment processing volume is more than RM5000, the Yearly Fee will be waived.
Serious sellers would go for their Premium Plan as it offers a lower transaction fee for credit / debit card (2.8%) and FPX (2.8% or RM0.60 whichever higher).
To enable credit card processing, merchants need to pay a One Time Bank Processing Fee for credit card channel of RM900 (waived until 15th October 2018) for both plans.
While they do pay out on a weekly basis, please note that there’s minimum payout amount of RM100 before they’ll process the payout to your local bank account.
There’s also a RM2 Settlement Fee if you go with their Lite Plan which also have a minimum payout amount of RM100.
MOLPay also offers Alipay and UnionPay channel as an add-on for Malaysian merchants who wish to receive online payment from China customers :
One Time Setup Fee (non-refundable) : RM499
Yearly Maintenance Fee : None
Alipay Online : 3% per transaction
UnionPay Online : 3% per transaction
Processing Currency :
Alipay – USD, RMB, MYR, SGD
UnionPay – USD, RMB, MYR
Minimum Settlement : RM100
Settlement Currency : Malaysian merchant (MYR), Non-Malaysian Merchant (USD, USD10 for Settlement Charge)
MOLPay claims to achieve one of the lowest dispute transaction ratio in the online payment industry.
Best Malaysia Payment Gateway Comparison Chart
The Best Malaysia Payment Gateway Comparison Chart gives an overview of the payment gateway Malaysia fees for credit / debit card and FPX online banking, set up fees, yearly fees and minimum withdrawal amount to local bank account giving new and existing merchants the choice to sign up or switch to different providers.
Merchants who are interested to enjoy the transaction rates mentioned can contact us and we will help them register for a new account with the respective Malaysia payment gateways.
For Ecommerce Startups And New Businesses
For startups and new businesses who are very budget conscious, we would normally recommend that they sign up with a PayPal direct account first while pending their application for any of the payment gateway providers of their choice.
Most like the word ‘FREE’ so they’ll usually go for iPay88’s SOHO Plan where they do not need to pay any set up or yearly fee while enjoying access to both credit / debit card processing by iPay88’s PayPal and FPX Online Banking.
For Ecommerce Sites With Volume Transactions
For ecommerce businesses that have a considerable amount of daily, weekly and monthly volume transactions, they would usually go for eGHL as they offer one of the lowest credit / debit card and FPX transaction fees.
The other option would be MOLPay where those businesses have both an ecommerce and physical presence as MOLPay offers a range of payment processing features across different channels.
Which Payment Gateway Options In Malaysia Should I Choose?
The best Malaysia payment gateway provider really depends on the merchants’ business needs.
If you want something fast and ‘free’ without the hassle of paying setup fees and yearly fees, PayPal Malaysia, Braintree Malaysia and iPay88’s SOHO Plan are suitable.
If you have a tonne of transactions to process for both online and physical retail, then eGHL and MOLPay will be able to meet those needs.
Regardless of volume transactions, it’s vital that any ecommerce business must have an online credit card processing Malaysia feature on their site as majority of buyers prefer to pay with credit / debit cards.
This payment gateway Malaysia comparison chart acts as a guide for new and existing sellers to consider which Malaysia payment gateways can best meet their business needs.
If you have any question or feedback about the mentioned payment gateways, please reach out to us at InstanteStore as we’re constantly working to help businesses sell more online.
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