6 best online payment processors in Malaysia (2026)

Key Takeaways:

• A payment processor is the engine behind every online transaction. It routes payment data between your customer's bank, the card network, and your account.

• The fee structure you choose (flat rate, interchange-plus, or tiered) has a direct impact on your processing costs, especially at higher transaction volumes.

• Airwallex combines payment processing, gateway, and multi-currency collection in one platform. With Airwallex, you can accept 160+ payment methods in 180+ countries.

Finding the best online payment processor in Malaysia is important. The processor you choose affects how payments are handled behind the scenes, from the moment a customer pays to the moment the money reaches your business, as well as what each transaction costs you.

This guide explains how payment processing works in Malaysia, breaks down the fees involved, and compares the processors available to Malaysian businesses.

Looking for a payment gateway instead? A gateway is the technology that connects your website or checkout to a payment processor.

If you're comparing gateways and trying to decide which to use, our guide to payment gateway providers is a better starting point.

What is an online payment processor?

A payment processor is the company that manages the back end of every digital transaction your business accepts.

When a customer pays online, the processor takes their encrypted payment data and routes it to the right place to get authorisation from the customer's bank. Once approved, it initiates the transfer of funds into your account.

Think of it this way: the payment gateway is the front door; it collects your customer's payment details at checkout. The payment processor is what happens after that door closes. It handles the communication between banks, confirms the funds are there, and moves the money.

Without a payment processor, you have no way to accept card or digital wallet payments online. Every transaction your business completes runs through one.

How payment processing works in Malaysia

Malaysia has one of the more varied payment ecosystems in Southeast Asia.

Alongside Visa and Mastercard, a large share of online transactions run through local rails: FPX for direct bank transfers, DuitNow for real-time payments, and e-wallets like Touch 'n Go, GrabPay and Boost.

Your payment processor needs to support these methods, or you'll lose customers at checkout.

Here is what happens from the moment a customer hits "Pay now":

Step 1: Customer initiates payment

The customer selects their payment method at checkout and submits their details.

Step 2: Payment gateway captures and encrypts the data

The payment gateway collects the payment information, encrypts it, and passes it to the payment processor. This happens in the background, invisible to the customer.

Step 3: Processor routes to the right network

The processor identifies the payment type and routes the data to the correct network. For Visa or Mastercard payments, it goes through the card network.

For FPX, it routes through Paynet, the national payments network co-owned by Bank Negara Malaysia and Malaysia's member banks. For DuitNow, it routes through the real-time payment infrastructure.

Step 4: Issuing bank approves or declines

The customer's bank checks whether funds are available and whether the transaction looks legitimate. It sends an approval or decline back through the network to your processor.

Step 5: Settlement and payout

Once approved, the processor batches the transaction and initiates the transfer of funds to your account, minus any fees. Settlement timelines vary by processor and payment method, typically between one and three business days for cards. FPX and DuitNow transfers can settle faster.

Payment processor vs payment gateway: what's the difference?

These two terms are often used interchangeably, but they refer to different parts of the payment process.

In short, the gateway gets the data, the processor moves the money. Most modern platforms combine both functions, so you may not need to manage them separately.

Airwallex provides both payment gateway and payment processing capabilities, so you can use one platform to connect your checkout to payment processing and handle the transaction itself. Airwallex supports payment acceptance in 180+ countries.

Payment processor fee structures & payment models

The headline rate a processor advertises is rarely the full picture; your actual cost depends on your pricing model, transaction volume, payment methods, and whether your customers are paying in RM or a foreign currency.

Here’s an explanation of each model:

Flat-rate pricing

With flat-rate pricing, you pay a fixed percentage plus a small per-transaction fee on every payment, regardless of card type or payment method. For example, a processor might charge 3% + RM1.00 per transaction across the board.

This is the simplest model to understand, and it makes your costs easy to forecast. It works well if your transaction volume is low or your average order value is modest.

At higher volumes, however, flat-rate pricing tends to be more expensive than the alternatives.

Interchange-plus pricing

Interchange-plus (sometimes called cost-plus) pricing is more transparent. You pay the actual interchange rate set by the card network, plus a fixed markup from your processor.

Interchange rates vary depending on the card type, the issuing bank, and the transaction method. Your processor's markup stays constant. This means your costs fluctuate slightly, but you always know exactly what you're paying and why.

For businesses processing higher volumes, interchange-plus is usually cheaper than flat-rate over time.

Tiered pricing

Tiered pricing groups transactions into buckets (typically "qualified," "mid-qualified," and "non-qualified"), each with a different rate:

• Qualified transactions (usually standard debit card payments) attract the lowest rate

• Non-qualified transactions (often premium or international cards) attract the highest

The problem with tiered pricing is opacity. Processors decide which tier a transaction falls into, and the criteria aren't always clear. You can end up paying non-qualified rates more often than you expect.

If a processor offers tiered pricing, ask for a full breakdown before signing up.

Other fees to watch for

Beyond the base pricing model, keep an eye on these:

• Monthly or annual fees: Some processors charge a platform fee on top of transaction fees. Factor this into your total cost, especially if your volume is low.

• Chargeback fees: When a customer disputes a transaction, you pay a flat fee per case, regardless of the outcome.

• FX conversion fees: If you accept payments in currencies other than RM, most processors apply a conversion fee on top of the base rate (up to 2%) per transaction. For businesses with international customers, this adds up quickly. Some processors, including Airwallex, let you hold funds in foreign currencies to avoid converting every payment back to RM.

• Settlement speed: Faster settlement sometimes comes at a cost. Check whether your processor charges for same-day or next-day payouts, or whether standard settlement timelines suit your cash flow needs.

What to look for in a payment processor for your Malaysian business

There are plenty of payment processors to choose from, but the right one depends on more than just the headline transaction rate. Here are the main things to check before you sign up.

1. Pricing model and total cost

Don't stop at the advertised transaction fee. Look at the full cost, including international card surcharges, FX conversion, chargebacks, and any monthly or setup fees. Then consider how those costs fit your typical transaction volume and payment mix.

The pricing model matters too. Flat-rate pricing is easy to understand, while Interchange++ pricing separates the processor's fee from the underlying card costs. Tiered pricing can be harder to assess because transactions are grouped into different pricing tiers.

2. Fee transparency

It's not always easy to work out what you'll actually pay for each transaction. Ask the processor for a sample fee breakdown based on your expected payment mix, rather than relying only on the advertised headline rate.

A clear breakdown can also help you compare providers on an apples-to-apples basis.

3. Acquiring capability

Check whether your processor has local acquiring capabilities in Malaysia. A local acquirer connects directly to Malaysian payment networks and can help you avoid some cross-border costs associated with routing transactions through an overseas acquirer.

It's also worth checking which local payment methods the processor can acquire.

For example, Airwallex supports local payment methods including FPX and DuitNow in Malaysia, alongside international cards and other payment methods.

4. Multi-currency settlement

If you sell internationally, check whether the processor automatically converts foreign-currency payments into MYR or lets you settle in the currency your customer paid in.

If you regularly receive and spend foreign currencies, being able to hold those balances can reduce the number of conversions you need to make.

5. Compliance and licensing

Make sure the processor is authorised to provide the relevant payment services in Malaysia. Check its licensing status with the relevant Malaysian regulator before signing up, particularly if the provider is less established in the market.

Best online payment processors in Malaysia

The right processor depends on your business model, transaction volume, and who your customers are. Here is a quick overview:

This information is based on publicly available information accessed on 24 Sep 2026. Information reflects Airwallex's own research and has not been independently verified.

1. Airwallex

Airwallex is a global payments platform that helps businesses accept online payments in Malaysia and from customers worldwide.

It supports local payment methods such as FPX, DuitNow, GrabPay and Touch 'n Go eWallet alongside major international card networks, with integrations ranging from hosted checkout and payment links to plugins and APIs.

Its Optimize 360 product also uses real-time AI to help improve payment approval rates through intelligent routing, smart retries and fraud optimisation.

Pricing: Airwallex offers both Blended and Interchange++ pricing for card payments, with the model and rates depending on your business and payment setup. See the table above for current Malaysia rates.

Worth knowing: Airwallex lets you accept 160+ payment methods across 180+ countries.

2. Stripe

Stripe is a developer-friendly payment processor with tools for online businesses ranging from standard card acceptance to subscription billing and fraud prevention.

In Malaysia, it supports FPX alongside major card schemes, making it a practical option for businesses that want both local and international payment methods through a single integration.

Pricing: Stripe uses flat-rate, pay-as-you-go pricing in Malaysia. International card payments and currency conversion incur additional fees, while custom pricing is available for businesses with larger payment volumes. See the table above for current rates.

Worth knowing: Stripe offers a broad range of payment and billing tools, which can be useful if you need more than basic online payment acceptance. Its developer-focused tools also make it a common choice for businesses building customised checkout and payment flows.

Information in this section is based on Stripe’s official website as of 24 Sep 2026.

3. Adyen

Adyen is a global payments platform built for larger businesses that want a single integration for online and in-person payments.

It supports cards, bank transfers, e-wallets and other payment methods, with payment processing, fraud prevention and other tools available through the same platform.

Pricing: Adyen uses Interchange++ pricing, combining a fixed processing fee with the underlying payment method cost. Card costs therefore vary depending on the transaction rather than following a single flat rate. See the table above for current Malaysia pricing.

Worth knowing: Adyen is designed primarily for larger businesses and offers a broad set of payment and payment-management tools. Its pricing model can give businesses visibility into the different components of their payment costs, but the variable costs can make them harder to forecast than flat-rate pricing.

Information in this section is based on Adyen’s official website as of 24 Sep 2026.

4. Adaptis

Adaptis is NTT DATA Payment Services' ecommerce payment suite, combining what was previously offered under the iPay88 and eGHL brands. In Malaysia, it supports local payment methods including FPX, DuitNow and e-wallets, alongside card payments.

Pricing: Adaptis does not publicly disclose its standard transaction fees, so businesses need to contact its sales team for a quote.

Worth knowing: Adaptis also offers offline point-of-sale and other business payment services, so it may be relevant if you need to support both online and in-person payments.

Information in this section is based on Adaptis’s official website as of 24 Sep 2026.

5. Fiuu

Fiuu is a Malaysia-based payment processor that has operated in Southeast Asia since 2005. It supports a wide range of payment methods, including FPX, DuitNow, Apple Pay, Google Pay, local e-wallets, Buy Now Pay Later, Direct Debit and Alipay+.

Pricing: Fiuu uses different rates depending on the payment method and card type, so there isn't one standard card-processing rate. See the table above for current Malaysia pricing.

Worth knowing: Fiuu also supports cash payments through its Fiuu Cash network, giving businesses an option for customers who prefer to pay over the counter alongside digital payment methods.

Information in this section is based on Fiuu’s official website as of 24 Sep 2026.

6. PayPal

PayPal is a globally recognised payment platform that lets businesses accept payments through PayPal and other supported payment methods.

In Malaysia, it can be useful for businesses selling to international customers who are already familiar with PayPal, although its local payment-method coverage differs from providers that support Malaysian options such as FPX and DuitNow.

Pricing: PayPal's Malaysia merchant fees vary depending on the transaction and whether currency conversion is required. See the table above for current rates.

Worth knowing: PayPal can be added as a payment option alongside other processors, which may be useful if you want to offer PayPal to international customers without making it your only payment method.

Information in this section is based on PayPal’s official website as of 24 Sep 2026.

Payment processors with limited Malaysia support

Square currently supports payment processing in the US, UK, Australia, Canada, France, Ireland, Japan and Spain. It does not support payment processing in Malaysia.

Why Malaysian businesses use Airwallex as their payment processor

Airwallex combines payment gateway, processor, and acquirer capabilities in one platform, so you don't need separate providers for each part of the payment process. Here's what you can do with Airwallex:

• Accept the payment methods your customers use. Airwallex supports FPX, DuitNow, GrabPay, Touch 'n Go, WeChat Pay, and 160+ other local and global payment methods, giving customers more ways to pay at checkout.

• Improve payment success rates. Optimize 360 uses machine learning to optimise payment routing, retries, and 3D Secure decisions, helping businesses reduce failed payments and manage fraud across different markets.

• Get started without monthly or setup fees. There is no monthly fee, setup fee, or minimum balance requirement. You can sign up online and start accepting payments once your account is approved.

Frequently asked questions (FAQs)

What's the difference between a payment processor and a payment gateway?

A payment gateway connects your website or checkout to the payment processor and securely sends payment details for processing. The payment processor handles the transaction between your business, the customer's bank, and the payment network. Some providers offer both services. For a deeper explanation, see our guide to payment gateways vs payment processors.

What is the most affordable payment processor in Malaysia?

There is no single cheapest payment processor for every Malaysian business. The total cost depends on your transaction volume, payment methods, card mix, and whether you need currency conversion. Compare the full fee structure, including processing fees, international card fees, FX charges, and any fixed fees, rather than looking at the headline transaction rate alone.

Is Stripe available in Malaysia?

Yes. Stripe is available to businesses in Malaysia and supports local payment methods such as FPX, alongside international cards. Malaysian businesses can sign up for a Stripe account online and use its payment, billing, and other tools to accept payments.

What payment processor fees should I expect in Malaysia?

Payment processor fees in Malaysia vary by provider and payment method. You may pay a percentage of each transaction plus a fixed fee, with additional charges for international cards, currency conversion, or other services. Check the provider's full fee structure rather than comparing headline transaction rates alone.

Which payment processors support FPX and DuitNow in Malaysia?

Several payment processors support FPX and DuitNow in Malaysia, including Airwallex. Other providers may support one or both depending on their current payment method offering, so check each processor's supported payment methods before choosing a provider.

Can I use more than one payment processor for my business?

Yes. Some businesses use multiple processors to increase payment method coverage, improve success rates, or have a backup if one provider experiences downtime. The trade-off is added complexity in reconciliation and reporting. If you want broad coverage from a single integration, Airwallex supports 160+ local and global payment methods from one platform.

Sources:

1. stripe.com/en-my/pricing

2. adyen.com/pricing

3. fiuu.com

4. paypal.com/my/business

5. squareup.com/help/us/en/article/5628-countries-where-square-is-available

6. worldpay.com/en