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 — so you can accept 160+ payment methods in 180+ countries and settle in 20+ currencies without unnecessary FX conversion

Finding the best online payment processor in Malaysia is important. The processor you choose shapes how money moves from your customer to you, and what each transaction costs you.

This guide explains how processing works in Malaysia, breaks down the fees involved, and compares the processors that support Malaysian businesses well. We also tell you which processors don’t work well in Malaysia, although they’re well-known globally.

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 — the card network, or a local payment rail like FPX or DuitNow — 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 — whether paid by Visa, Mastercard, GrabPay or FPX — 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 — a card, e-wallet, or FPX online banking — 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 networ

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 in practice, you may not need to manage them separately.

If you've heard of options like SenangPay or HitPay, these are primarily payment gateways rather than full payment processors — we cover them in detail in our guide to payment gateways in Malaysia.

If you want a deeper breakdown of how processors vs gateways work together, we cover this in a dedicated guide on payment gateways vs payment processors in Malaysia.

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 is what each model means in practice.

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 — you're paying the same rate whether your customer uses a basic debit card or a premium rewards card.

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

Not every processor is built for the Malaysian market. Before you commit, check these six things:

1. Support for Malaysian payment methods

Your processor needs to support the methods your customers actually use. In Malaysia, that means FPX, DuitNow, and local e-wallets — Touch 'n Go, GrabPay, Boost, and ShopeePay. A processor that only covers Visa and Mastercard will leave a significant share of transactions on the table.

2. Pricing model and total cost

Look beyond the headline rate. Compare the full fee stack — base transaction fees, monthly fees, chargeback fees, and FX conversion fees — across your expected transaction volume and payment mix. A lower headline rate does not always mean a lower total cost.

3. Multi-currency and cross-border capability

If you sell to customers outside Malaysia, or pay international suppliers, currency handling matters. Check whether the processor supports collecting payments in foreign currencies, what conversion fees apply, and whether you can hold balances in multiple currencies to avoid converting funds unnecessarily.

4. Settlement speed

How quickly funds reach your account affects your cash flow. Settlement timelines vary significantly between processors — from same-day to three or more business days for card payments. For businesses with tight working capital, this is worth checking before you sign up.

5. Platform integrations

Check that the processor integrates with your existing tools — your eCommerce platform (Shopify, WooCommerce, Magento), accounting software, or ERP. A processor with pre-built plugins reduces setup time and ongoing maintenance.

6. Security and regulatory compliance

Any processor you use should be Payment Card Industry Data Security Standard (PCI DSS) compliant. For processors operating in Malaysia, also check their licensing status with Bank Negara Malaysia. You can verify registered payment service providers on the BNM website.

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 before the full breakdown:

1. Airwallex

Airwallex acts as a payment gateway, payment processor, and acquirer in one platform — which means you get a single dashboard you can use for payments, currency management, and payouts.

For Malaysian businesses selling internationally, like-for-like settlement lets you collect and hold funds in the currency your customer pays in, so you're not forced to convert every transaction back to RM. It integrates directly with Shopify, WooCommerce, and Magento, and uses machine learning to optimise authorisation rates across markets.

Fees:

• Domestic cards (Visa, Mastercard, Amex, Apple Pay, Google Pay): 1.90% + RM1.50

• International cards: + 1% surcharge

• Local payment methods (GrabPay, FPX, DuitNow, 160+ others): from 1.4% + RM1.50

• No monthly fee

Worth knowing: Airwallex Global Accounts let you receive and hold funds in 20+ currencies without opening separate bank accounts in each market. Applecrumby, a Malaysian brand expanding globally, reduced its payment gateway fees by 0.5% after switching to Airwallex.

2. Stripe

Stripe is a developer-friendly payment processor available in 195 countries, 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 coverage from a single integration.

Fees:¹

• Domestic cards and FPX: 3% + RM1.00 per transaction

• International cards: + 1% surcharge

• Currency conversion: + 2%

• GrabPay: 3%

• Alipay: 2.9% + RM1.00

• Chargeback fee: RM90.00 per dispute

• No setup or monthly fees

Worth knowing: The cumulative FX fees — 2% conversion plus 1% international card surcharge — can add up quickly for businesses with a significant share of overseas customers. Custom pricing is available for high-volume businesses.

3. Adyen

Adyen is a global payments platform built for larger businesses that want a single integration for online and in-person payments. It uses Interchange++ pricing — you pay a fixed processing fee plus the underlying payment method cost — which gives you full visibility into what each transaction actually costs.

Fees:²

• Fixed processing fee: US$0.13 per transaction, plus the payment method fee

• FPX (online): US$0.13 + 1.5%

• Touch 'n Go eWallet: US$0.13 + 1.60%

• No setup or monthly fees, but a minimum invoice amount applies²

Worth knowing: Interchange++ pricing is transparent, but rates vary by card type and issuer — harder to forecast than flat-rate pricing. Contact Adyen's sales team before signing up to confirm the minimum invoice threshold for your business.²

4. Adaptis

Adaptis is NTT DATA Payment Services' ecommerce payment suite, combining what was previously offered under the iPay88 and eGHL brands. It supports local Malaysian payment methods including FPX, DuitNow, and local e-wallets, and is one of the most established payment processors in the Malaysian market.

Fees: Adaptis does not publicly disclose its fee schedule. Contact their sales team directly for a quote.

Worth knowing: Adaptis also supports offline point-of-sale and business financing for SMEs, making it an option if you need omnichannel coverage beyond online payments.

5. Fiuu

Fiuu is a Malaysia-based payment processor that has operated in Southeast Asia since 2005. It supports 110+ payment methods across the region, including FPX, DuitNow, Apple Pay, Google Pay, local e-wallets, Buy Now Pay Later, Direct Debit, and Alipay+.

Fees: Fiuu does not publicly disclose its transaction fees or FX conversion terms.³ Contact their sales team for a tailored quote.

Worth knowing: Fiuu supports cash payments through its over-the-counter Fiuu Cash network — useful if you serve customers who prefer cash-based payment options alongside digital methods.

6. PayPal

PayPal is a globally recognised payment processor, licensed by Bank Negara Malaysia as an e-money issuer. It has no monthly or setup fees and is familiar to international shoppers, making it a useful option if a meaningful share of your customers are overseas.

For businesses selling primarily to local Malaysian customers, however, its coverage is limited — it does not support FPX, DuitNow, or local e-wallets.⁴

Fees: PayPal does not list its full Malaysia merchant fee schedule on its business overview page. Visit paypal.com/my directly for current rates.

Worth knowing: PayPal's default checkout redirects customers to a PayPal-hosted page, which can add friction. It works best as a supplementary option for international transactions rather than a primary processor for the Malaysian market.

Payment processors with limited Malaysia support

Square currently operates in the US, UK, Australia, Canada, France, Ireland, Japan, and Spain.⁵ Malaysian businesses cannot sign up for a Square merchant account.

Worldpay is a major global payments processor handling US$2.3 trillion in annual transactions,⁶ primarily for large enterprise clients. It does not offer standard direct merchant onboarding for Malaysian businesses through its public-facing channels.

Why Malaysian businesses use Airwallex as their payment processor

Airwallex combines payment gateway, processor, and acquirer capabilities in a single platform. That means you're not stitching together separate vendors for each function — everything from checkout to settlement runs in one place.

Here what’s you can do with Airwallex:

Accept the payment methods your customers expect

Airwallex supports FPX, DuitNow, GrabPay, Touch 'n Go, WeChat Pay, and 160+ other local and global payment methods. Offering the methods your customers already use reduces checkout drop-off and improves conversion.

Settle in the currency you're paid in

With like-for-like settlement across 20+ currencies, you collect funds in the currency your customer pays in — no forced conversion back to RM every time. If you have overseas suppliers or staff to pay, you can use those funds directly without converting back and forth, saving you FX fees.

Reduce unnecessary FX costs

Airwallex Global Accounts give you local bank details in 21 countries, so international customers can pay you as if you were a local business in their market. If you do have to convert, Airwallex’s highly competitive FX rates help you save up to 80% on FX fees.

Improve payment success rates

Airwallex's ML-powered optimisation engine — Optimize 360 — applies intelligent routing, automatic retries, and 3D Secure logic to reduce failed payments and lower fraud risk across every market you sell in.

Scale without adding complexity

As your business grows into new markets, Airwallex's local acquiring network in 35+ markets means you can process payments locally — reducing cross-border fees and improving card acceptance rates — without setting up new entities or banking relationships.

Simple to get started, with no hidden costs

There is no monthly fee, no setup fee, and no minimum balance required. You can sign up entirely online and start accepting payments once your account is approved.

Frequently asked questions (FAQs)

What is the most affordable payment processor in Malaysia?

It depends on your transaction volume and payment mix. For low-volume businesses, flat-rate pricing from providers like Stripe (3% + RM1.00¹) is simple and predictable. For higher volumes, interchange-plus pricing can work out cheaper over time. Airwallex starts from 1.90% + RM1.50 for domestic cards and from 1.4% + RM1.50 for local payment methods like FPX and DuitNow — with no monthly fee.

Is Stripe available in Malaysia?

Yes — Stripe is available to Malaysian businesses and supports local payment methods including FPX and GrabPay. You can sign up directly through Stripe's website. The standard rate for Malaysian accounts is 3% + RM1.00 per successful domestic card or FPX transaction,¹ with additional fees for international cards and currency conversion.

What payment processor fees should I expect in Malaysia?

Fees vary by provider and pricing model. As a general guide, domestic card fees in Malaysia range from 1.90% to 3% per transaction, with a small fixed fee on top. Local payment methods like FPX and DuitNow are typically cheaper than card transactions. Watch out for additional costs: international card surcharges, FX conversion fees, chargeback fees, and monthly or setup fees where applicable.

Which payment processors support FPX and DuitNow in Malaysia?

Airwallex, Stripe, Adyen, Fiuu, and Adaptis all support FPX. Airwallex and Fiuu also explicitly support DuitNow. PayPal does not support FPX or DuitNow for Malaysian merchants.

Do I need to be licensed by Bank Negara Malaysia to use a payment processor?

No — as a merchant, you do not need your own licence. The payment processor you use must hold the relevant licence from Bank Negara Malaysia. Before signing up with any provider, confirm their licensing status on the BNM website.

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

This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Malaysia) Sdn Bhd is licensed in Malaysia as a MSB Class B (remittance business only) licensee and is regulated by Bank Negara Malaysia (licence number 00318).