Online Payment Methods in Malaysia
Malaysia is one of the top 3 richest countries in Southeast Asia. Over the past five years, there has been a marked increase in the share of online payments. In the country, you can pay with bank cards, direct transfers, e-wallets and other alternatives supported by BillBlend.
We will tell you about popular Malaysia payment methods, why the number of users is growing and why it is important to choose a reliable business partner.
Why Malaysia is promising for business and online payments
E-commerce in Malaysia is actively developing. The country is among the leaders in Southeast Asia. Among the trends to the growth in the number of active users are:
- Expanding internet user base, especially in rural areas. More people and businesses are using e-commerce to reach a wider market.
- Growth of mobile commerce. The use of smartphones has changed shopping habits, with mobile commerce accounting for more than 50% of all online transactions.
- The rise of social commerce. Social media platforms such as Facebook, Instagram and TikTok are fuelling the growth of e-commerce in Malaysia.
- Growth in online shopping among the elderly. This is supported by digital literacy programmes and campaigns.
- Development of export e-commerce. Malaysia's export e-commerce grew by 19 per cent in 2024.
Statica, an authoritative publication, estimates that the number of users will increase by 8.1 million between 2024 and 2029, which is 75.91 per cent of the current figure. If you’ve been thinking about connecting online transactions in the region, details of integration and fees can be found on Telegram.
The five most popular payment methods are
Bank transfers, cards, digital wallets, cash payments and Apple Pay are the five most popular payment methods in Malaysia.
Bank transfers
The reason for its popularity is the accessibility of the payment method. Up to 90% of the paying population has access to banking services. This means that bank transfer is an affordable and convenient payment method for the vast majority of consumers. Note that some banks are developing their own payment solutions, for example Maybank has introduced Maybank2U Pay, a payment gateway for businesses of all sizes.
Debit and credit cards
Bank cards have not lost their relevance despite the emergence of alternative payment options. Despite higher fees compared to e-wallets, users trust cards. The payment tool became more accessible after the launch of virtual credit card or digital card projects.
E-wallets and digital wallets
Malaysia has become one of the leaders in the region in terms of demand for alternative payment methods. E-wallets have many advantages for Malaysian consumers. Instant transfers, the ability to use the wallet for online and offline purchases, and bonus programmes. The most popular wallets are PayPal, Alipay, WeChat and Google Pay, GrabPay, Boost.
Cash on Delivery (COD).
This is a popular form of cashless payment that allows customers to pay at the time of delivery. Malaysian courier services GDex and Pos Laju provide cash on delivery service. This means that customers of online shops can pay cash on receipt, even if they prefer not to use electronic payment methods. This way, shops can attract more customers who are more comfortable paying in cash.
Apple Pay
This electronic payment method came to the country in 2022, with only Singapore having introduced the service before Malaysia in Southeast Asia. The main advantages are the contactless payment method and the ability to link the balance to a card or wallet.
BillBlend supports all the payment methods mentioned above. In total, we provide support for 50+ options in 70+ currencies. Businesses in Malaysia can use local currencies as well as other currencies, which will ensure a greater influx of users.
Importance of payment gateways for businesses in Malaysia
A gateway allows you to accept a variety of payment types, be it credit cards, debit cards or e-wallets, providing the flexibility needed to meet the needs of a wide audience. An efficient and secure payment process significantly reduces bounce rates at the checkout stage while building customer confidence. Payment gateways open the door for businesses to expand internationally.
Key features when choosing a payment gateway:
- Protecting customer data is a top priority. Look for gateways that use advanced encryption methods to ensure the confidentiality and integrity of information.
- Wide range of payment options. The more payment methods the gateway supports, the wider the audience you can reach.
- Easy integration. The availability of ready-made APIs or plugins greatly simplifies implementation and speeds up launch.
- Transparency of tariffs. Pay attention to the fee structure for transaction processing, setup costs, and any hidden fees.
- Quality support. Choose a provider with responsive support ready to help at any time to minimise customer losses and frustration.
Choosing the right payment gateway is a strategic decision that affects all aspects of your business. It sets the stage for a reliable and hassle-free payment process, which ultimately leads to increased customer loyalty and revenue growth.
Answers to common questions
Why is Malaysia attractive for online payment development?
This is due to the availability of banking services and the growing popularity of alternative payment methods. Experts believe that by 2029, the user share will grow by 75.91 per cent.
What are the most popular payment methods?
The top 3 in terms of popularity include bank transfers, debit and credit cards, as well as international and local e-wallets.
Why is it important to choose a reliable partner to process online payments?
A reliable partner ensures secure transactions, reduces order cancellations and increases customer confidence. It also provides support for various payment methods, which increases audience reach and improves customer experience. Choosing a trusted payment processing gateway like BillBlend ensures the stable operation and reliability of your business.
What is COD (Cash on Delivery)?
COD (Cash on Delivery) is a payment method in which the customer pays for goods directly upon receipt. This method is particularly popular with those who prefer to pay in cash or don’t trust electronic payments. Courier services such as GDex and Pos Laju offer this service, allowing shops to attract more customers.
What are the benefits of using e-wallets in Malaysia?
E-wallets such as PayPal, Alipay, WeChat, Google Pay and GrabPay offer instant transfers, ease of use for online and offline purchases, and participation in rewards programmes. They are particularly popular with young people and those looking to reduce the time it takes to process payments.
