A guide to payment methods in Malaysia (2026)

Key takeaways

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

• The right payment gateway should support local and international payment methods, offer seamless integration, and help you manage FX costs.

• With Airwallex, you can accept payments via 160+ local payment methods, including DuitNow, GrabPay, and WeChat Pay.

Payment methods in Malaysia have evolved rapidly in the past few years.

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.

For businesses, offering the right mix of payment methods can make it easier for customers to complete purchases.

This guide explores the most popular payment methods in Malaysia, how they work, and what businesses should consider when choosing which options to offer.

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

Here’s a quick overview of the most popular payment methods used in Malaysia:

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 5 Oct 2026.

DuitNow

DuitNow is Malaysia’s national payment system, operated by Payments Network Malaysia (PayNet).

It enables instant payments through participating banks and e-wallets, including transfers using mobile numbers and QR codes. DuitNow QR is widely accepted across Malaysia, with almost 3 million registered QR touchpoints at the end of 2025.¹

DuitNow also supports cross-border QR payments across participating markets, including Singapore, Thailand, Indonesia, Cambodia, China, and South Korea.²

Worth taking note of: Cross-border DuitNow QR availability depends on the participating bank, e-wallet, and market. It is not a substitute for international card acceptance if you sell to customers outside Malaysia.

Interbank GIRO (IBG)

Interbank GIRO (IBG) is Malaysia’s interbank transfer system for sending money between accounts at participating financial institutions. It is commonly used for business payments such as supplier transfers, payroll, and other account-to-account payments.

IBG payments can be made through internet and mobile banking, ATMs, phone banking where available, and over-the-counter services. PayNet currently lists 43 participating banks.³

Unlike DuitNow, IBG transfers are not generally instant. PayNet lists a standard fee of RM0.10 for transfers made through internet or mobile banking, although fees and limits can vary by bank.³

Worth taking note of: IBG is better suited to bank-to-bank business transfers than online checkout. For customers paying directly from their bank account, FPX or DuitNow is generally more relevant.

Financial Process Exchange (FPX)

FPX is an online banking payment method that lets customers pay directly from participating Malaysian bank accounts. At checkout, customers select their bank and complete the payment through online banking.

FPX supports retail and corporate banking customers, with more than 20 participating financial institutions.⁴ Payments are available around the clock at most participating banks, although operating hours can vary.

FPX is primarily designed for payments from Malaysian bank accounts and is denominated in Malaysian ringgit. Businesses selling internationally should offer additional options such as cards or international wallets.

Worth taking note of: FPX is a domestic payment method, so it is not suitable as a standalone option for accepting payments from overseas customers.

Credit and prepaid cards

Credit and debit cards remain an important payment method in Malaysia, particularly for online purchases and transactions from international customers. Unlike domestic bank-transfer methods such as FPX, cards can accept payments from customers without a Malaysian bank account.

Card payments are processed through networks such as Visa and Mastercard, with merchants typically paying a percentage-based processing fee. The exact rate varies by card type, payment provider, acquiring arrangement, and pricing plan.

Worth taking note of: Card processing fees can be higher than some domestic bank-transfer methods, particularly for certain card types or international transactions. Compare the full processing and currency-conversion costs when choosing a payment provider.

Digital wallets

Digital wallets let customers pay using funds or payment credentials stored in a mobile app. In Malaysia, they can be used for both online purchases and in-person payments, including QR code transactions.

Popular digital wallets include:

• Touch 'n Go eWallet: Supports payments, money transfers, bill payments, and other everyday transactions.

• GrabPay: Grab’s digital wallet, which can be used for payments across Grab and participating merchants.

• ShopeePay: Shopee’s digital wallet, supporting payments on Shopee and at participating merchants.

• Boost: A Malaysian e-wallet supporting payments and other financial services.

Businesses generally need a compatible payment gateway or, for physical stores, a payment terminal or QR-enabled acceptance setup.

Worth taking note of: Fees, supported transaction types, settlement arrangements, and customer coverage vary between wallets, so businesses should choose the options that match their target customers.

Buy now, pay later (BNPL)

Buy now, pay later (BNPL) services allow customers to split a purchase into multiple instalments or defer payment. BNPL has become increasingly popular in Malaysia, with 7.5 million active BNPL accounts in 2025.⁵

Popular BNPL services include:

• Atome: A BNPL provider that allows customers to split eligible purchases into instalments.

• SPayLater: Shopee’s BNPL service, allowing eligible customers to pay in instalments over different repayment periods.

• PayLater by Grab: Grab’s BNPL service, which lets eligible customers split purchases into instalments or defer payment, depending on the option available.

For businesses, BNPL gives customers more flexibility when paying for purchases. Merchant fees and other commercial terms vary between providers.

Worth taking note of: BNPL is a form of credit rather than a simple payment method. Malaysia’s BNPL sector is also subject to increasing regulatory oversight, so businesses should check the current terms and regulatory status of any provider they work with.

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

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.

• 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?

Before choosing a payment provider, ask:

• What payment methods do you support? Make sure the provider supports the payment methods your customers use today, as well as options you'll need if you expand into new markets.

• What fees should I expect to pay? Ask for a full breakdown of transaction, currency conversion, settlement, account, and other fees so you can understand the total cost. Singaporean PC company Dreamcore, for example, reduced its payment gateway costs after switching to Airwallex Checkout and now saves 5% on transactions processed through its website.

• How easily will it integrate with my existing tools? Check whether the provider works with your eCommerce platform, accounting software, inventory systems, and CRM, and whether setup requires developer support.

• How quickly will I receive my funds? Find out how long transactions take to settle into your account and whether settlement times vary by payment method or currency.

• How do you handle security, disputes, and chargebacks? Ask what measures the provider uses to protect payment information and prevent fraud, as well as how refunds, disputes, and chargebacks are handled.

Why Malaysian businesses choose Airwallex to accept payments

Airwallex makes it easy to accept payments from customers in Malaysia and internationally, with the payment methods and currencies they already use. With Airwallex Payments, you can:

• Accept 160+ local payment methods: Offer familiar options such as DuitNow, GrabPay, WeChat Pay, cards, and more across markets.

• Accept payments in multiple currencies: Give international customers the option to pay in their preferred currency and manage your funds across multiple currencies.

• Create payment links without code: Start accepting payments quickly without building a full checkout.

• Integrate with your eCommerce platform: Connect Airwallex with your existing eCommerce stack for a branded checkout experience.

• Protect transactions from fraud: Use Airwallex’s AI-powered fraud prevention tools to identify and block suspicious transactions.

• Track and reconcile payments: Get visibility into transactions and payment activity from a central dashboard.

You can set up your Airwallex Business Account fully online. There are no setup fees, monthly fees, or minimum balance requirements.

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?

The cost of setting up a payment method varies by provider and payment type. Some providers charge a setup or monthly fee, while others only charge a transaction fee when you receive a payment. You may also need to pay fees for currency conversion, settlement, or specific payment methods such as cards and digital wallets. Check the provider’s full fee structure to understand the total cost before signing up.

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