In eCommerce, payment gateways are vital for businesses to safely and efficiently process online payments. Many payment gateways in Malaysia offer different payment processing solutions for businesses of all sizes. These gateways provide a reliable and secure way to process payments, accepting various forms of payment such as credit and debit cards, bank transfers, mobile payments, and digital wallets. Malaysia-based payment gateways are adaptable to the changing needs of eCommerce, enabling businesses to receive payments from customers around the clock and across multiple locations. Whether your business is, a small startup or a large corporation is OK. There are payment gateways in Malaysia that can accommodate your payment processing requirements.
Role of a Payment Gateway in eCommerce
In eCommerce, a payment gateway is an intermediary that enables secure online transactions between merchants and customers. In Malaysia, payment gateways provide various digital payment solutions, such as online shopping, bill payments, and money transfers. As the number of payment gateways in Malaysiacontinues to grow, consumers have various choices to conduct online transactions securely.
Payment Gateways – How Do They Work?
Imagine finishing a delightful meal at a fancy restaurant and receiving a bill from your waiter. Instead of reaching for your wallet, you use your phone to transfer the payment from your bank account to the restaurant. This is where payment gateways come into play.
When you purchase on a merchant’s website, you enter your payment details, which are securely transmitted to the payment gateway. The payment gateway processes the transaction and sends it to the relevant financial institution for approval. After the transaction is authorized, the payment gateway notifies the merchant, completing the payment process.
Best Payment Gateways in Malaysia – Banks
Third-party payment gateways were not a notion when credit and debit cards were initially launched. Banks carried out the honors. Since they were proficient at managing transactions, they became payment gateways by locating the point of sales and utilizing IT infrastructure.
So, let’s start with the banks providing online payment gateways in Malaysia.
Maybank
Maybank provides payment gateway solutions in Malaysia for businesses called Maybank2u Pay. Maybank2u Pay enables businesses to accept online customer payments via various payment methods such as credit and debit cards, online banking, and e-wallets like Maybank2u Wallet and Boost e-wallet. Maybank2u Pay is designed to be user-friendly and can be integrated easily with popular eCommerce platforms such as WooCommerce and Magento. It also comes with fraud detection and prevention measures, ensuring secure payment processing for businesses and customers.
Setup Fee
Recurring Fee per Month
Transaction Fee
Merchant Discount Rate
Settlement Period
RM 100
None
1.5%
Varies
2 – 3 Business Days
Pros
Cons
Maybank is a well-established and reputable bank in Malaysia that can provide customers with a sense of security when making online payments.
Maybank2u Pay is primarily designed for businesses operating within Malaysia, so it may not be the best option for businesses selling products or services internationally.
Maybank2u Pay is equipped with fraud detection and prevention measures, which can help to protect businesses and customers from online fraud.
While Maybank2u Pay is designed to be user-friendly, businesses may still need to invest time and resources in setting up and integrating the payment gateway.
It supports various payment methods, including credit and debit cards, online banking, and e-wallets, giving customers flexibility in choosing their preferred payment method.
CIMB Bank
CIMB Bank is a financial institution that provides various services, including online payment gateways in Malaysia. Some potential advantages of using CIMB Bank’s payment gateway may include its strong security measures, user-friendly interface, and the ability to accept multiple forms of payment. It offers competitive pricing for its payment gateway services in Malaysia, which may make it an attractive option for businesses looking to minimize costs.
Setup Fee
Recurring Fee per Month
Transaction Fee
Merchant Discount Rate
Settlement Period
RM 488
None
2.7%
Varies
3 Business Days
Pros
Cons
CIMB Bank’s payment gateway accepts a variety of payment methods, including credit and debit cards, online banking, and e-wallets like Boost and GrabPay
CIMB Bank’s payment gateway may not offer as many features or integrations as some other payment gateway providers in Malaysia, which could limit its usefulness for certain businesses
It is designed to be user-friendly and easy to navigate, which may help to increase customer satisfaction.
As with any payment gateway service, there is always a risk of transaction failure or fraud, which may impact the customer experience and damage a business’s reputation.
RHB Bank
RHB Bank is a leading commercial bank in Malaysia with a strong presence in the ASEAN region. The bank offers comprehensive financial services and solutions, including personal, business, investment, wealth management, and Islamic banking. It provides one of the best payment gateway solutions in Malaysia.Some potential advantages of using RHB Bank’s payment gateway may include its fraud prevention measures, the ability to process multiple currencies, and integration with various eCommerce platforms.
Setup Fee
Recurring Fee per Month
Transaction Fee
Merchant Discount Rate
Settlement Period
RM 500
Varies
2.8%
Varies
3 Business Days
Pros
Cons
RHB Bank’s payment gateway is designed to help prevent fraud by verifying transactions and detecting potential security threats
Like any payment gateway, RHB Bank’s payment gateway is subject to technical difficulties and system outages that can impact its reliability and usability.
It can process payments in multiple currencies, which can be helpful for international businesses.
Transactions may take longer to process with RHB Bank’s payment gateway depending on the specific payment method, leading to payment processing and fulfillment delays.
The payment gateway can be integrated with various popular eCommerce platforms, making it easier for businesses to set up and use.
Public Bank
Public Bank provides online payment gateway services in Malaysia to businesses, allowing them to accept customer payments via various methods such as credit and debit cards, online banking, and e-wallets. Public Bank’s payment gateway also offers fraud detection and prevention, real-time transaction monitoring, and easy integration with different types of websites and shopping carts.
Setup Fee
Recurring Fee per Month
Transaction Fee
Merchant Discount Rate
Settlement Period
RM 488
RM 30
2.8%
Varies
2- 3 Business Days
Pros
Cons
A reputable financial institution offers it, which can provide trust and reliability to customers and merchants.
It may not be as widely accepted as other payment gateways, limiting its availability to some customers and businesses.
It supports various payment methods, including credit and debit cards, FPX, and mobile payments.
Integrating PBePay with an online store or website may require technical knowledge and support, which can challenge smaller businesses.
It provides a range of security features, such as two-factor authentication, fraud detection and monitoring, and encryption to safeguard transactions and customer information.
The customer service provided by Public Bank may not be as responsive or accessible as some other payment gateway providers in Malaysia.
Best Payment Gateways in Malaysia – Fin-Tech Companies
Financial technology companies, or fin-tech companies, are crucial in Malaysia for utilizing technology to improve and automate financial services. Their payment gateway solutions in Malaysia are critical to the digital economy, making transactions more efficient and aiding businesses in the modern digital age. Let’s delve deeper into some of the innovative fin-tech companies created to simplify transactions in the country.
iPay88
iPay88 is one of the largest payment gateways in Malaysia, providing online payment solutions for businesses of all sizes. It enables companies to accept online customer payments using various payment methods, such as credit and debit cards, online banking, and e-wallets. It has been operating since 2006 and has processed millions of transactions for businesses in various industries. The company continuously expands its range of payment methods and services to serve businesses and customers better.
Function
Focus Area
To provide businesses with a secure and reliable platform for accepting online payments
Catering to businesses of all sizes, from small startups to large corporations, and providing a range of payment solutions to meet their needs
Pros
Cons
iPay88 supports various payment methods, including credit and debit cards, online banking, and e-wallets, making it easy for businesses to accept payments from customers
Integrating iPay88 into a website or online store can be complex for companies without technical expertise
It uses advanced security measures to ensure safe and secure business and customer transactions.
Its customer support is limited to certain hours, which can be a disadvantage for businesses that need assistance outside of these hours
It supports transactions in multiple currencies, allowing companies to accept customer payments worldwide.
iPay88 charges fees for its services, which can be a disadvantage for companies with small profit margins
MOLPay
MOLPay is a prominent payment gateway in Malaysia that offers comprehensive online payment solutions to businesses, regardless of size. The payment gateway caters to different payment methods, including credit and debit cards, online banking, and e-wallets. With its establishment in 2005, MOLPay has successfully processed millions of transactions for various industries. The platform allows companies to integrate their payment gateway using an API on their website or online store, providing their customers with multiple payment options and ensuring secure and seamless transactions at checkout.
Function
Focus Area
To provide businesses with an API that allows them to integrate MOLPay’s payment gateway into their website or online store
We are serving businesses in Malaysia and Southeast Asia.
Pros
Cons
MOLPay supports transactions in multiple currencies, allowing businesses to accept customer payments worldwide.
MOLPay’s payment page may not be fully customizable for businesses to reflect their branding.
It uses advanced security measures to ensure safe and secure business and customer transactions.
Its dispute-resolution process may not be as robust as some businesses would like
It supports multiple payment methods, making it easy for businesses to accept customer payments.
Billplz
Billplz was founded in 2012 and has become a popular choice for businesses in Malaysia and Southeast Asia. It is a payment gateway in Malaysia that caters specifically to SMEs.The platform allows companies to accept payments using various payment methods, including credit and debit cards, online banking, and e-wallets. It also provides a simple and customizable payment page, making it easy for customers to complete their transactions.
Function
Focus Area
To provide businesses with a user-friendly platform that allows them to accept payments from customers online
serving companies in Malaysia, particularly those in the eCommerce, education, and charity sectors
Pros
Cons
Billplz offers advanced features such as automatic reconciliation, real-time reporting, and mobile optimization.
Billplz’s payment solutions are primarily designed for businesses operating in Malaysia, which could be an issue for companies with an international customer base.
Billplz charges lower fees than many other payment gateways, which can benefit businesses with small profit margins.
Its payment page may not be fully customizable for businesses to reflect their branding.
It provides a user-friendly interface that makes it easy for businesses to manage their payments and customers to complete their transactions.
eGHL
GHL (Also known as eGHL) is one of the best payment gateways in Malaysia that provides online payment solutions for businesses. It was founded in 2013 and has since become a popular choice for businesses in Southeast Asia. It offers seamless and secure payment solutions and supports various payment methods, such as credit and debit cards, online banking, and e-wallets.
Function
Focus Area
To provide businesses the ability to accept payments through various channels
To provide a reliable and efficient payment gateway in Malaysia that offers businesses the ability to accept payments online through various channels
Pros
Cons
eGHL offers broad coverage across Southeast Asia, supporting over 15 different currencies and allowing businesses to accept payments from customers in multiple countries
It may not be the best choice for businesses that primarily operate in countries outside of Southeast Asia
It offers a variety of payment channels, including credit and debit cards, online banking, e-wallets, and direct debit.
Some users may find the setup process to be more complex than other payment gateways
It provides a user-friendly and secure platform that is PCI DSS compliant.
Here’s a little summary of some of the top payment gateways in Malaysia for 2023:
Payment Gateway
Pros
Cons
Transaction Fee
Setup Cost
iPay88
Provides a secure and reliable payment platform
Higher setup costs
3.0% per transaction
MYR 488 one-time setup fee and MYR 388 annual fee
MOLPay
Offers a customizable payment processing experience
Limited acceptance outside of Malaysia
2.8% per transaction
MYR 488 one-time setup fee
Billplz
Provides a simple and easy-to-use payment platform
Limited acceptance outside of Malaysia
1.5% per transaction
Free
eGHL
Offers a variety of payment options, including popular e-wallets
Higher transaction fees for international payments
2.8% per transaction
Free
PayPal
Widely accepted globally, with a user-friendly interface
Higher transaction fees for international payments
In summary, payment gateways facilitate secure and streamlined online transactions for eCommerce businesses. With many options available, selecting the appropriate payment gateway can be daunting, but it is essential as all of a company’s transactions will be processed. This guide offers an overview of the best payment gateways in Malaysia, catering to the needs of seasoned online shoppers, eCommerce businesses, and even newcomers to the online world. Feel free to contact us to assist you in determining the most suitable payment gateway in Malaysia for your business needs!
Frequently Asked Questions
What is a payment gateway?
A payment gateway is a technology that enables online merchants to securely and efficiently process electronic payments, such as credit card transactions, through their website or mobile app.
How does a payment gateway work?
When a customer submits their payment information on an online store, the payment gateway encrypts it and sends it to the payment processor for authorization. The processor then communicates with the customer’s bank to verify the transaction and send the funds to the merchant’s account.
How do I choose the right payment gateway for my business?
When choosing a payment gateway, consider transaction fees, security features, ease of use, integration options, and customer support. Selecting a payment gateway that supports your customers’ preferred payment methods is also essential.
Are there any transaction fees associated with payment gateways?
Yes, most payment gateways charge a per-transaction fee and a percentage of the transaction amount. Fees can vary depending on the payment gateway and the type of transaction.
What security measures do payment gateways have in place to protect sensitive data?
Payment gateways use various security measures, such as encryption, tokenization, and fraud detection tools, to protect sensitive data from unauthorized access or theft.
Can payment gateways be integrated with my existing website or eCommerce platform?
Most payment gateways offer integration options with popular eCommerce platforms and website builders. It’s essential to check the compatibility of the payment gateway with your existing setup before choosing a provider.
What happens if a customer disputes a charge?
If a customer disputes a charge, the payment gateway provider will work with the merchant and the customer’s bank to investigate and resolve the issue. The merchant may be required to provide evidence of the transaction to support their case.
Do I need a merchant account to use a payment gateway?
Yes, most payment gateway providers require you to have a merchant account to process transactions. However, some providers, such as PayPal, offer integrated merchant accounts as part of their service.
