Top Payment Methods in Malaysia Every Business Should Know

Top Payment Methods in Malaysia Every Business Should Know

The rise of e-commerce has ushered in a myriad of payment options for Malaysian consumers. Today, customers have a plethora of user-friendly and straightforward payment methods at their disposal, greatly simplifying their lives.

For a business to thrive in Malaysia, understanding and incorporating various payment methods into its payment framework is vital for enhancing the overall user experience.

Malaysia’s Payment Trends for 2022

With over 86% of the Malaysian population online, and the continuous growth of this trend, e-commerce is thriving. More than half of the population is engaging in online shopping, with high mobile device usage contributing significantly to this growth. By 2025, Malaysian e-commerce is set to double, with consumers increasingly favoring digital payment methods.

The government of Malaysia has rolled out initiatives to promote the e-commerce market, creating significant opportunities for businesses to establish themselves in the country. The tech-savvy younger generation is embracing online payments, with digital wallets, net banking, credit cards, and “buy now pay later” (BNPL) features playing a pivotal role in the digital transaction landscape.

Top 10 Payment Methods in Malaysia

Cash: Cash payments remain one of the easiest and most traditional methods, with 39% of the market share. However, it’s projected to decrease to 15.1% by 2025 as cashless options gain prominence.

Credit Cards: Covering 27% of sales and 19% of e-commerce payments, credit cards are popular, and many payment gateways offer secure credit card transactions. Major Malaysian banks have partnered with renowned credit card providers, making them a widely accepted option.

Bank Transfers: Ideal for secure B2B transactions, bank transfers account for over 30% of e-commerce payments in Malaysia.

Debit Cards: Deducting payments directly from the user’s checking account, debit cards cover 12% of e-commerce and 13% of sales payments.

Digital/Mobile Wallets: With over 15% of transactions, digital wallets are on the rise. Popular Malaysian e-wallets include Boost, GrabPay, and TouchnGo.

DuitNow QR: This real-time fund transfer service, coupled with QR payments, offers a convenient way to make online transactions. Cross-border QR payments are becoming accessible.

Direct Debits: These are commonly used for recurring payments and allow pre-authorized payments with scheduled instructions.

Cash on Delivery (COD): Customers pay after receiving their ordered products, constituting 9% of e-commerce payments.

Buy-Now-Pay-Later (BNPL): BNPL allows consumers to make affordable down payments and pay the rest in interest-free installments. Its popularity is on the rise, projected to triple e-commerce spending by 2025.

Financial Process Exchange (FPX): This payment option enables online transactions with existing bank credentials. It’s jointly owned by 11 financial entities, offering convenience and security for users.

Local Payment Methods and Business Challenges

The proliferation of local payment options in Malaysia has brought both opportunities and challenges. Managing a plethora of local payment methods is complex, expensive, and demands a skilled team.

Fraud prevention is another concern. Payment frauds pose significant risks, resulting in penalties and losses for businesses.

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How Web Technology Expert Can Simplify Malaysian Payment Methods

Web Technology Expert offers a comprehensive solution to manage local and global payments, streamlining the complexities of integrating various payment methods into your e-commerce platform. With our user-friendly interface, you can effortlessly access 300+ payment methods globally and create custom payment UIs without the need for extensive technical expertise.

Our platform is straightforward and can be integrated into your business site in under an hour, saving you from technical jargon and complexities. You can offer multiple payment choices to your customers while ensuring their data is secure.

With Web Technology Expert, managing Malaysian payment methods becomes simple, efficient, and cost-effective, enabling your business to thrive in the ever-evolving e-commerce landscape.

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