Choosing The Best Payment Gateway in Malaysia For Your eCommerce Website or Mobile App

Malaysia is fast becoming a digital juggernaut, with web and mobile app developers at the forefront of this growing online market. But even the most innovative app can stumble and fall if it does not offer a smooth, secure and versatile payment experience.

As such, choosing the right payment gateway in Malaysia is crucial for app developers seeking to grow their business and establish themselves as a major player in the digital market.

But making a choice can be daunting, with Malaysian payment gateways offering their own unique features, security measures, and integration capabilities.

This comprehensive guide aims to simplify this process, providing app developers with a list of the best Malaysia payment gateway providers, letting you compare their features and decide which one is best suited for your business.

What is a payment gateway?

A payment gateway is an online tool used by merchants to securely process debit/credit card payments, digital wallets and bank transfers from customers. The term covers both physical card-reading devices found in retail stores and payment processing portals found in online stores.

A payment gateway essentially acts like a bridge; it collects customer information for a purchase and securely sends the info to a payment processor. The processor will then use that information to contact the customer’s bank account, completing the transaction authorisation and settlement process.

Using a payment gateway is vital for online businesses as it provides a safe and efficient means of enabling eCommerce transactions and maintaining the integrity of the payment process.

How does an online payment gateway benefit your website or mobile app?

An online payment gateway enhances your website or mobile app by providing a secure and efficient way for customers to complete transactions, boosting their confidence and satisfaction.

It simplifies the payment process, reduces cart abandonment rates, and supports multiple payment methods, leading to increased sales and a better user experience.

Choosing the right payment gateway Malaysia, therefore, offers more than just a quick and easy means of accepting payments. It is essential for enhancing the customer’s experience, providing security and improving your business’s growth.

Here's why getting a suitable online payment gateway is crucial for Malaysian app developers:

1. Improved customer experience: Imagine a potential customer attempting to make a transaction only to be frustrated by a confusing or unfamiliar payment process, prompting them to find another online shop to do business. The right payment gateway will offer a seamless checkout, with minimal steps and quick processing times, keeping customers happy and conversions high.
2. Improved security: Data breaches are a developer’s worst nightmare. With a secure payment gateway, you and your customers can rest easy knowing that their financial information is shielded by robust security measures. Look for providers that adhere to stringent security standards, like the PCI DSS.
3. Multiple payment options: Some customers use e-wallets like GrabPay or TouchNGo, while others prefer using their credit or debit cards. The ideal payment gateway supports a wide range of payment options, ensuring that your customer’s diverse needs are met as well as expanding your market reach.
4. Flexibility and adaptability: In the fast-growing digital market, having a payment gateway provider that grows with your business is a necessity. A flexible online payment gateway will scale with your company’s growth, accommodating increased transaction volumes and supporting international currencies and payment methods.
5. Reliable customer support: An ideal payment gateway should have a reliable customer support service that responds to technical issues quickly and effectively. This minimises downtime and ensures the smooth running of your operation.
6. Global expansion: For web and mobile app developers seeking to expand their reach globally, a payment gateway is an invaluable tool. Many payment gateways support multiple currencies, enabling businesses to accept payments in the local currency of their customers.

How to choose the best payment gateway in Malaysia?

Selecting the ideal payment gateway for your web apps and mobile app development business in Malaysia involves considering the following key factors:

• Security compliance: A secure payment gateway should adhere to international security standards such as the PCI DSS.
• Ease of integration: A payment gateway with a user-friendly API and clear documentation makes integration a breeze. This frees you up to focus on other aspects of web or app development, such as building new features or functionalities.
• Payment methods supported: Look out for payment gateways that provide multiple payment options, including credit and debit cards, e-wallets and online banking.
• Subscription fees: Different payment gateways offer different subscription fees. Compare the fee structures, including setup, monthly, and per-transaction fees, to find a cost-effective provider.
• Customer support: Opt for a provider offering an efficient and responsive customer support service that will quickly fix any problems that may arise.
• Speed of transaction processing: Find a payment gateway with fast transaction processing. Faster checkouts will lead to happier customers.
• Multi-currency support: If you plan to expand into international markets, ensure the gateway supports multiple currencies.
• Reputation and reliability: Read reviews and testimonials from customers and other web or app development groups. Positive reviews are a good indication of the provider’s reliability and service quality.

The top payment gateways in Malaysia

Here’s a look at some of the best payment gateway providers (in no particular order) used by the majority of Malaysian web and mobile app developers:

PayPal

PayPal is easily the most well-known online payment gateway provider, as it’s widely used by both local and international sellers due to its flexibility and ease of use.

PayPal Malaysia does not require any sign-up fee or yearly fee to use their online credit card processing Malaysia feature, making it highly recommended for new web and mobile app development startups hoping to begin accepting credit/debit card payments from customers immediately. Setting up a PayPal Malaysia account to accept payment is quick and easy; just go to PayPal Malaysia’s site and sign up for a business account. Then key in your details and remember to link your PayPal account to your online store to start accepting online payments.

However, note that PayPal’s transaction fee is 3.9% + RM2 for credit/debit card online transactions for Malaysian customers, whereas international customers buying from you will be charged 4.4% + RM2 per transaction.

Additionally, you will need to transfer the funds from your PayPal account to your local bank account. If the amount is less than RM400, there’s an RM3 charge by PayPal. There’s no charge if the amount is RM400 and above.

Braintree

Braintree was acquired by PayPal in 2013 with the idea of growing the payment platform to a global scale. Braintree’s experience in working with new business models has made it popular with web and mobile app developers.

Signing up for a Braintree Malaysia account may take a while. This is because the company requires your business registration details (Malaysian IC, Business Registration Forms, 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 is that Braintree does not charge any setup or yearly fee, and its credit/debit card transaction fees are cheaper (3.4% + RM2) compared to PayPal (3.9% + RM2). Additionally, all payment is automatically pushed to your local bank account on a daily basis.

Stripe

Stripe is another international payment gateway provider that comes with no setup or annual fee charges for opening a merchant account with them. This is on top of its short onboarding time, only taking about 1 or 2 days to complete. Perfect for web or app developers who want to create an account quickly.

At 3% + RM1 per, Stripe’s transaction fees are a good deal better than PayPal or Braintree’s However, with international payment gateways, transaction fees tend to be higher compared to our own Malaysian payment gateway providers.

Note the following: Local Credit / Debit card for Visa/Master: 3% + RM1 Foreign credit card for Master/Visa: 4% + RM1 IF Currency conversion is required: an additional 2% Online Banking (FPX): 3% + RM1 GrabPay : 3% AliPay: 2.9% + RM1

If your work requires you to accept multiple foreign currencies to your local Malaysian eCommerce website or mobile app, the transaction fees may add up to a big sum, since currency conversion is required to convert into Malaysian Ringgit.

Please note that there will be an RM90 charge per dispute (also known as chargebacks for card transactions).

iPay88

iPay88 is another leading payment gateway providers in Malaysia. It provides secure payment, whether on mobile or desktop and is easy to integrate into your existing online presence, thanks to its innovative payment solutions through mobile apps, POS integration, and terminals.

It currently offers three different plans to fit your business needs.

SME Plan: Comes with online banking, credit/debit card (UnionPay at 2.7%) and e-wallets. Setup fee: RM488 Annual fee: RM500

Enterprise Plan: Offers online banking, credit/debit card processing (Visa/Master/UnionPay) and e-wallets. Setup fee: RM1888 Annual fee: RM600

Credit/debit card application: For credit card processing (Visa/Master/UnionPay), Stripes will use local banks to process your payments at a lower transaction rate (2.3%), while debit card (Visa/Master) is at 2%, which is better than you using a direct PayPal account (3.9% + RM2 per transaction). Setup fee: RM2888 Annual fee: RM900

senangPay

senangPay is a Malaysia payment gateway that caters to local small- and medium-sized businesses. Its simple yet user-friendly interface supports multiple payment methods and provides affordable pricing plans (with no setup fees), making it a popular choice for startups and SMEs.

senangPay offers the following three membership plans tailored for online business web and mobile app developers:

Starter: Annual fee: RM300

Advance: Annual fee: RM450

Special: Annual fee: RM1500

Commission (per transaction): Credit/debit cards: 2.5% or a minimum of RM0.65, whichever is higher FPX: 1.5% or a minimum of RM1, whichever is higher Special package: 1.8% or a minimum of RM0.65, whichever is higher

Razer Merchant Services

Razer Merchant Services (RMS), formerly MOLPay, is Southeast Asia’s premier payment gateway provider, facilitating the connection between international brands and consumers across the region since 2005.

One of RMS’s biggest advantages over its competitors is its seamless payment system. Buyers do not need to leave the seller’s site in order to pay, as the entire payment process is conducted on-page. Another big advantage Razer has over other subscription-based providers is its automated charging system, ensuring that you will never be late with your payments.

The Razer payment gateway offers two membership plans for web and mobile app developers:

Lite: Setup fee: RM499 Annual fee: RM99, waived for 1st year Credit cards: 3.8% Online banking: 3.8%, or minimum of RM0.60, whichever is higher

Premium Plan: Setup fee: RM400 Annual fee: RM499 Visa/Mastercard credit/debit card: 2.4% per transaction FPX online banking: 2.4% per transaction or minimum RM 0.60, whichever is higher Razer Cash at 7-Eleven: 2.4% per transaction or minimum RM 0.80, whichever is higher DuitNow QR: 1.2%

eGHL

eGHL was founded in 2013 and it functions as the internet payment arm of GHL Systems Berhad. This Malaysia payment gateway offers a secure internet payment solution covering both card and non-card payment channels for online businesses throughout the Southeast Asia region. Additionally, it is easy to integrate into an eCommerce website or mobile app.

eGHL offers a lower transaction fee for credit/debit cards (1.4% – 2.4%) and FPX payments (1.6% – 2.4% or RM0.60, whichever is higher), depending on the plans you take.

Here’s a rundown of their three plans with e-wallet rates:

Standard Plan: Credit / Debit card for Visa/Master: 2.4%

• 1% for non-MYR processing
• RM0.50 (for transactions less than RM40) Online Banking: 2.4% or RM0.60 (whichever is higher) Boost, MCash, GrabPay, TouchnGo, ShopeePay: 1.5% Maybank QRPay (MAE): 1% Monthly Fee: RM25 + 8% SST per month (waived IF total monthly transaction volume more than RM15k per month upon request)

Premium Plan: Credit card for Visa/Master: 2.0% Debit card for Visa/Master: 1.8% International Credit/Debit for Visa/Master: 3%

• RM0.50 (for transactions less than RM40) Online Banking: 2.0% or RM0.60/transaction OR Fixed Rate RM1.50/transaction Boost, MCash, GrabPay, TouchnGo, ShopeePay: 1.3% Maybank QRPay (MAE): 1% Monthly Fee: RM25 + 8% SST (waived IF transaction volume exceed RM15k per month upon request)

Corporate Plan: Credit card for Visa/Master: 1.6% Debit card for Visa/Master: 1.4% International Credit/Debit for Visa/Master: 3%

• RM0.50 (for transactions less than RM40) Online Banking: 1.6% or RM0.60/transaction OR Fixed Rate RM1.00/transaction Boost, MCash, GrabPay, TouchnGo, ShopeePay: 1.2% Maybank QRPay (MAE): 1% Monthly Fee: RM60 + 8% SST (waived IF transaction volume exceed RM15k per month upon request)

Processing fee for all three plans: Refund: RM0.50 per transaction Chargeback: RM5 per transaction Settlement: No charge to Malaysian local bank, USD30 to Foreign Bank

Payments are automatically pushed to your local bank account on a weekly basis with no minimum amount requirement.

Kiple Pay

KiplePay is a rapidly growing e-wallet in Malaysia and is fast becoming a market leader for fintech in an increasingly cashless society.

Kiple Pay offers a simple and straightforward SME Plan for web developers:

SME Plan: Credit card for Visa/Master: 1.5% Debit card for Master/Visa: 1% Foreign credit card for Master/Visa: 2.5% Online Banking (FPX): RM1 Boost, KiplePay, Maybank MAE, GrabPay, TouchnGo, ShopeePay, WeChatPay, AliPay: 1.5% Setup Fee: RM500 Annual Fee: RM500 (first year WAIVED)

Billplz

Billplz has been gaining lots of eyeballs due to its no-frills online payment gateway service.

Unlike other Malaysian payment gateways, Billplz does not charge any annual or setup fee for their Basic Plan, which is a big help for startups setting up payment options in their app or website.

Billplz offers three membership plans for web and mobile app developers to choose from:

Basic Plan: Credit card for Visa/Master: 1.8% Debit card for Master/Visa: 1% Foreign credit card for Master/Visa: 4.4% Online Banking (FPX): RM1.10 Per Payment Order Fee: RM1.10 Billing API: RM0.60 per SMS Setup Fee: FREE Annual Fee: FREE

Standard Plan: Credit card for Visa/Master: 1.8% Debit card for Master/Visa: 1% Foreign credit card for Master/Visa: 4.1% Online Banking (FPX): RM0.70 Per Payment Order Fee: RM0.70 Billing API: RM0.60 per SMS Setup Fee: FREE Annual Fee: RM999 + 8% SST (wef 1st March 2024)

eWallet rates: MaybankQRPay: 1% ShopeePay: 1.1% TouchnGo, GrabPay: 1.2% Boost: 1.4% Shopify Transaction Fee: 0.3% (charged by Shopify)

For Buy Now and Pay Later: Grab Pay Later: 6.5% for 1-4 monthly instalments Atome: 6% for 3 monthly instalments

FiuuPay (Formerly RazerPay)

FiuuPay has been a trusted payment gateway provider since 2005. With a proven track record in handling large scale payment volume with zero downtime, it is an excellent choice for Malaysian web and mobile app developers looking for a strong and stable payment gateway provider.

Fiuu provides a complete suit of payment options including credit/debit card, online banking, e-wallets, Buy Now Pay Later, and over-the-counter cash payment for businesses across Southeast Asia.

Among the benefits of Fiuu’s online payment solutions are easy integration with the whole of Southeast Asia, scalable processing capabilities and a superior payment experience including server API where Fiuu FinTech is transparent in the payment process.

PayHalal

PayHalal is the first Shariah-compliant payment gateway in the world. This makes it perfect for businesses that adhere to Islamic principles, as it offers halal-certified payment processing services. Its HalalKitty QR Pay enables you to create your own QR code in three easy steps. Supporting credit/debit cards, FPX, Islamic Buy Now Pay Later and e-wallet, it is the perfect choice for smaller mobile apps. PayHalal offers the following three membership plans: Pay-per-use: Annual fee: Free Credit card commission: 2.80% + RM1.00 FPX commission: 2.60% + RM2.00

SME Gold: Annual fee: RM365 Credit card commission: 2.60% FPX commission: 2.40% + RM2.00

Platinum Pro: Annual fee: RM1200 Credit card commission: 2.40% FPX commission: 1.88 – 2.00% + RM2.00

2C2P

2C2P is a full-suite payment gateway provider helping fast-growing enterprises like tech giants, online marketplaces, and global retailers accept payments from billions of people everywhere. Its mission is to help the world's leading companies in emerging markets accept and make payments seamlessly.

2C2P provides API integration for quick and seamless integration into your website or mobile app and offers multiple payment options to satisfy your customers’ diverse payment needs. On top of that, buyers can also choose to pay in their preferred currency, granting your business an opportunity to expand globally.

Setup fee: RM500 Annual fee: RM500 Credit card commission: 2.5% – 3% per transaction Bank transfer commission: RM1.50 flat rate

Choosing the best payment gateway Malaysia for web and mobile apps

Finding the best Malaysia payment gateway provider depends on your mobile app or eCommerce website’s needs.

Consider factors such as transaction fees, supported payment methods, ease of integration, robust security features, and reliable customer support.

If you need something fast without having to pay setup or annual fees, PayPal Malaysia, Braintree Malaysia, Stripe and Billplz’s Basic Plan are perfect for you.

If you need to process a tonne of online and physical retail transactions in rapid succession, then Kiple Pay and eGHL are suitable for those needs.

If you want an online payment gateway that is quick and easy to integrate into your website or app’s features, then pick 2C2P or iPay88.

Regardless of the volume of transactions, it’s vital that any web or app developer business must have an online credit card processing Malaysia feature on their site, as the majority of buyers prefer to pay with credit/debit.

Remember, a payment gateway is an integral part of your web or mobile app’s operation, not an afterthought.

By prioritising best-fit features, you'll create a secure and user-friendly payment experience that keeps Malaysians happy and enables your website or app to thrive in an increasingly competitive digital marketplace.

If you have any questions or feedback about the mentioned payment gateways, please reach out to us at Techies, as we’re constantly working to help web and mobile app developers set up their online payment methods.

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