A guide to payment methods in Malaysia (2026)

Key takeaways

1. With digital payments being the norm in Malaysia, businesses that offer local options like DuitNow, FPX, and GrabPay often see stronger conversion rates and higher repeat sales.

2. The right payment gateway should support local and international payment methods, offer seamless integration, and help you manage FX costs – while meeting compliance needs across markets.

3. Airwallex helps you accept payments like a local and grow globally. With Airwallex, you can accept payments using 160+ local payment methods, settle like-for-like in 20+ currencies, and use one global Business Account to manage it all.

With over 67% of Malaysians adopting a cashless lifestyle¹ and over half using non-cash payment methods for food, beverage, and online purchases², it’s clear that digital payments are now the norm in Malaysia. 

According to our report with Edgar, Dunn & Company³, digital payment options also make people feel more confident buying from businesses anywhere in the world. Whether you’re focused on Malaysia or expanding into new countries, it’s essential to offer the payment methods your customers prefer in each market. 

In this guide, you'll learn about the most popular payment methods Malaysian consumers use today, with tips to help you choose the right options for your business. We'll also help you evaluate payment processors to ensure you can collect payments smoothly.

What is a payment method?

A payment method refers to the way money moves from a customer to your business when they make a purchase. These include traditional options like cash and cards, as well as digital solutions like digital wallets, buy now, pay later (BNPL) services, and QR code payments.

In Malaysia, digital payments have seen strong growth. 87% of Malaysian consumers now use mobile wallets for their transactions⁴, and the total monthly value of electronic payments in Malaysia crossed RM120 billion in November 2025.⁵

As a business owner in Malaysia, offering a wide mix of payment methods helps you stay competitive. It lets you meet local expectations, attract international customers, and increase sales and retention.

6 Popular payment methods in Malaysia

Let's explore the most popular payment methods used in Malaysia.

1. DuitNow

2. Interbank GIRO (General Interbank Recurring Order)

3. Financial Process Exchange (FPX)

4. Prepaid and credit cards

5. Digital wallets

6. Buy now, pay later (BNPL)

To accept digital payments, you’ll need to work with a payment gateway provider, which is a platform that securely moves money from your customers’ accounts to your business. The right provider, like Airwallex, lets you support multiple local and international payment methods through a single integration. This way, you can offer a wide range of options without juggling multiple systems.

Note: Merchant fees are indicative ranges for Malaysian merchants and vary by payment gateway, bank, and pricing plan. The information in this table has been reviewed to be accurate as of 14 January 2026. 

DuitNow

DuitNow is Malaysia’s national real-time payment system. Like PayNow in Singapore and PromptPay in Thailand, DuitNow lets you transfer money instantly between Malaysian bank accounts using a mobile number, QR code, or NRIC number. With 2.6 million acceptance points⁶, DuitNow makes it easy for Malaysian businesses to offer fast, low-cost digital payment methods to customers.

The information in this table has been reviewed to be accurate as of 14 January 2026. 

Interbank GIRO (IBG)

Interbank GIRO is Malaysia’s electronic transfer system and is currently supported by 43 financial institutions across the country⁷. With IBG, you can make one-off or recurring payments between participating banks, so it’s commonly used for scheduled supplier payments, payroll, and other recurring business transfers.

You can initiate IBG payments via online or mobile banking, at ATMs, by phone banking (where offered), or by submitting a form at your local bank branch.

The information in this table has been reviewed to be accurate as of 14 January 2026. 

Financial Process Exchange (FPX)

FPX (Financial Process Exchange) is a Malaysia-based online banking payment method that lets customers make real-time transfers from their bank accounts, without entering card details at checkout. Because FPX only supports MYR transfers from participating Malaysian banks, you’ll still need other options – such as credit and debit cards or digital wallets – to accept payments from international customers. 

The information in this table has been reviewed to be accurate as of 14 January 2026. 

Credit and prepaid cards

Credit and prepaid cards remain widely used in Malaysia, especially for online purchases. However, credit cards carry processing fees of up to 3% or more per transaction⁸, which impacts your profit margins. 

The information in this table has been reviewed to be accurate as of 14 January 2026. 

Digital wallets

Digital wallets are secure platforms that allow your customers to store their payment details on their phones.  Customers can pay in-store by scanning a QR code or with a quick tap, reducing friction at checkout. To accept these payments, your business will need a compatible point of sale (POS) system or payment gateway.

Some of the most widely used digital wallets in Malaysia include:

• Touch 'n Go (TNG): TNG is one of the most widely-used digital wallet in Malaysia. The service started as a payment method for public transport, parking, and toll fares, and has since expanded to cover fund transfers and bill payment services. 

• GrabPay: A digital wallet by Grab that lets you pay for everything from e-hailing rides to groceries, while earning GrabRewards points on your transactions. It also offers a BNPL service known as PayLater by Grab.

• ShopeePay: A digital wallet by eCommerce marketplace Shopee that supports in-store QR code payments with ShopeePay, as well as a BNPL service known as SPayLater.

• Boost Wallet: Operated by telco conglomerate Axiata Group, Boost Wallet offers cashless payment methods to over 500,000 merchants.⁹ Users can also earn cashback and rewards points on their transactions.

The information in this table has been reviewed to be accurate as of 14 January 2026. 

Buy now, pay later (BNPL)

BNPL services let shoppers pay for their purchases in smaller instalments. This payment option is popular among younger Malaysians. There are over 6.5 million active BNPL accounts nationwide, which reflects more than a two-fold increase in two years.¹⁰ 

For businesses, BNPL helps increase average order value and improve checkout conversion, particularly for higher-priced items. However, BNPL usually comes with higher processing fees.

Here are some popular BNPL services:

• Atome: A Singapore-headquartered BNPL service that lets shoppers divide their purchase amount into three interest-free instalments.

• SPayLater: A BNPL service by Shopee that lets you spread out monthly repayments with its 1-, 3-, 6-, or 12-month options on Shopee, and at selected in-store ShopeePay merchants. 

• PayLater by Grab: PayLater by Grab lets customers split payments into 4 interest-free monthly instalments, or into 8 or 12 monthly instalments with a small processing/interest fee. Customers can also defer the entire payment to the following month. 

The information in this table has been reviewed to be accurate as of 14 January 2026. 

How do I choose the right payment methods for my business?

Offering multiple trusted local payment methods improves the checkout experience and boosts conversions. But choosing the right mix depends on how your customers shop, what fees you’re willing to absorb, and how well your payment setup fits your operations.

Step 1: Understand your customers’ preferences

Out of all the payment methods we’ve discussed, which ones are the best fit for your business? To figure this out, you should: 

• Assess your target market: Identify your primary audience segments and research their preferred payment habits. Some customers prefer traditional banking methods like cash and bank transfers, while others choose digital solutions.

• Gather customer feedback: Run a poll on your website, ask customers as they pay in-store, or check recent customer service tickets to see which payment methods they prefer and why.

• Analyse transaction data: Look at how your customers pay across different markets to see which payment methods they use most.

With Airwallex Payments, you can display exact prices in your customer’s local currency and let them pay using the methods they already trust. That familiarity at checkout reduces friction and improves your completion rates across markets.

Step 2: Compare payment processing fees 

Different payment methods will come with different fees, which can eat into your profit margins, especially as your transaction volumes grow. When deciding which payment methods to offer, pay attention to processing fees such as:

• Transaction fees: The percentage or flat fee charged per transaction

• Currency conversion fees: Additional costs when converting currencies

• Account maintenance fees: Recurring subscription or platform fees 

• Settlement fees: Charges for transferring funds to your bank account

• Hidden fees: Chargebacks or non-compliance fees

To avoid unexpected fees, factor these costs into your payment strategy from the get-go. 

Step 3: Invest in security and fraud protection measures

One in three Malaysians cite payment fraud as a top financial crime concern.¹¹  Be sure to choose secure payment methods and providers to help you avoid losses, protect your reputation, and build trust with your customers. 

What makes a payment system secure? Consider these three aspects:

• Identify verification: Choose a provider that offers strong authentication tools, like 3D Secure (3DS) and two-step verification, to prevent unauthorised transactions. Airwallex uses smart 3DS optimisation to automatically apply the best strategy based on risk level, local regulations, and exemption rules, helping you stay compliant while improving payment success rates.

• Data protection: Make sure your provider meets international compliance standards, such as PCI DSS. Airwallex maintains PCI DSS, SOC1, and SOC2 compliance, and meets local regulatory requirements in every market we operate. For digital wallets, check that your provider is licensed by Bank Negara Malaysia and offers PIN protection to secure customer accounts and transactions.

• Transaction security: Look for systems that monitor transactions in real time and detect suspicious behaviour. Airwallex’s AI-powered fraud engine analyses millions of transactions to flag and block fraudulent activity before it happens, helping you protect revenue and reduce chargebacks.

Step 4: Consider integration with your existing systems

Consider how your chosen payment gateway or payment methods work with tools you already use,  such as eCommerce platforms, accounting software, inventory systems, and customer relationship management (CRM) platforms. Your payment processing provider should help you:

• Sync transactions and reconcile books automatically

• Process payments and track inventory to reduce admin work

• Save on currency conversion fees by accepting payments in your customers’ local currencies and preferred payment methods

What questions should you ask your payment methods provider?

Here are some helpful questions to get you started.

What fees should I expect to pay?

Some charges are obvious, others are buried in the fine print, and they all add up. Ask for a full breakdown of costs so you know exactly what you’re paying for, including transaction fees, currency conversion fees, monthly account charges, settlement and withdrawal fees, and other hidden costs. 

These small fees can eat into your bottom line, as Singaporean PC company Dreamcore discovered. After switching to Airwallex Checkout, Dreamcore cut its payment gateway costs and now saves 5% on all transactions processed through its website. 

How do you keep payment information safe and secure?

To protect your customers’ sensitive information and data, check with payment providers on their data security measures, fraud prevention, and compliance with security standards.

What payment methods do you support?

Customers trust businesses that let them pay in their local currency using familiar payment methods. Airwallex Checkout supports 160+ local payment methods globally, such as GrabPay and Atome in Southeast Asia, and ACH in the US. For businesses that sell overseas, choose a payments provider with broad payment method coverage from day one, so you don't need to switch platforms later when you want to add new payment options or expand to new regions.

How easily will your system integrate with your current business tools?

Your gateway should work smoothly with your eCommerce platform, accounting software, inventory systems, and CRM. Ask what setup is required, and whether integrations are no-code, plug-and-play, or require developer support.

How quickly do you process transactions?

To prevent disruptions to your cash flow, find out how long funds take to be deposited in your account. 

What customer support do you offer?

You need effective customer support to quickly resolve payment issues or downtime. Some questions to help you evaluate the level of customer support provided include: 

• Availability: What are their support hours and days of operation?

• Customer support channels: What channels do they use to provide customer support? (e.g. email, hotline, live chat, social media) 

• Response times: How quickly do they resolve payment issues?

How do you handle transaction disputes, refunds, and chargebacks?

To build customer trust, you need a clear process for handling refunds and disputes. Ask payment providers about their chargeback management system and support measures in place to protect your business from unexpected fees and technical issues.

Do you offer other features?

A payment processing partner should offer more than basic transaction data. Choose providers that give you analytics, reporting tools, and marketing insights to help improve customer experience, manage inventory better, and save on transfer and currency conversion fees through like-for-like settlement.

How Airwallex can help your business with accepting payments

Deciding what payment methods to offer in Malaysia can feel overwhelming. Each one comes with different fees, limits, and setup requirements – and not every provider makes it easy to manage them all in one place. Ultimately, you need a solution that supports the payment methods your customers trust while giving you control over how you get paid.

Airwallex helps you do just that. From DuitNow in Malaysia to WeChat Pay in China, our platform supports 180+ local payment methods across 130+ currencies, so you can offer payment methods that feel familiar to your customers. You can also accept payments in their local currency without forced conversions, eliminating unnecessary FX fees.  

Behind the scenes, Airwallex takes care of the complexity. From easy setup and fraud prevention to tracking and reconciliation, our platform simplifies payment operations across markets. Use no-code payment links to get started quickly, or integrate with your eCommerce stack for a fully branded checkout experience. Every transaction is protected by our AI–powered fraud engine, with real-time insights and full visibility from your dashboard.

It doesn’t stop at payments. With multi-currency accounts, low-cost global transfers, corporate cards, expense management, and more, Airwallex gives you the tools to manage your business finances globally – all on a single platform.

Curious to see how it all works? Sign up for your free Airwallex Business Account to see how we can help you offer your customers their preferred payment methods and grow internationally.

Frequently asked questions (FAQs)

What are the popular payment methods in Malaysia?

Popular payment methods in Malaysia include credit and prepaid cards, direct bank transfers through FPX, QR code payment methods like DuitNow, mobile wallets like Touch ‘n Go, and ShopeePay, and BNPL services like Atome and Grab PayLater.

How long does it take to set up a payment method?

Set-up times vary by payment method. While you can activate services like DuitNow and IBG GIRO in a few days, setting up BNPL options like Atome may need more time. A payment gateway like Airwallex lets you integrate and manage multiple local and international payment methods through a single platform, reduce manual setup, and go live faster. 

How much does it cost to set up a payment method?

Most providers charge some combination of setup fees, monthly fees, and per‑transaction fees to support card payments, online banking, wallets and BNPL.

To accept a comprehensive range of payment methods – including digital payments from customers in Malaysia and overseas – you’ll need a payment gateway. Different providers structure their gateway pricing differently, with varying processing fees and recurring charges. With Airwallex, our transparent fee structure shows you exactly what you’ll pay, with no setup fees, no maintenance fees, and no hidden costs.

Can I integrate a payment method with my existing website or eCommerce platform?

Yes. Airwallex makes it easy to add local and international payment methods to your website using pre-built plugins or developer-friendly APIs.

We support platforms like Shopify, WooCommerce, Magento, and BigCommerce, and offer direct integration support to help you go live quickly. Whether you’re working with an existing site or building something new, Airwallex gives you the tools to deliver a fast, secure, and fully branded checkout experience.

Sources:

1. https://www.visa.com.my/about-visa/research/consumer-payment-attitudes-study.html

2. https://www.ipsos.com/sites/default/files/ct/news/documents/2024-01/%5BIpsos%20Press%20Release%5D%20-%20Non-Cash%20Economy%20%26amp%3B%20Payment%20Evolution.pdf

3. https://www.airwallex.com/newsroom/cross-border-ecommerce-2024-report

4. https://www.visa.com.my/about-visa/research/consumer-payment-attitudes-study.html

5. https://data.gov.my/dashboard/electronic-payments

6. https://www.bnm.gov.my/documents/20124/17493532/ar2024_en_ch1e.pdf

7. https://www.hsbc.com.my/ways-to-bank/interbank-giro/faq/

8. https://curlec.com/blog/guides/guide-accept-online-payments-malaysia-2025/

9. https://myboost.co/feature

10. https://ccob.my/industries/

11. https://investors.fico.com/news-releases/news-release-details/fico-survey-1-3-malaysians-worried-about-being-scammed-real-time

​​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 regulated by Bank Negara Malaysia as a licensed remittance business and a licensed merchant acquirer.