What is an FPX transfer and how does it work? (2026)

Key takeaways:

• FPX is Malaysia’s real-time online payment gateway that lets customers pay merchants directly from their bank accounts with instant confirmation, without needing cards or digital wallets.

• It’s widely used across eCommerce, bill payments, subscriptions, and travel, offering real-time settlement and bank-level security at generally lower cost than cards.

• With Airwallex, businesses can accept FPX alongside 160+ local payment methods via checkout plugins or APIs, with like-for-like MYR settlement and optional FX at interbank rates.

FPX is Malaysia's real-time online payment gateway that lets consumers pay directly from their bank account when shopping online or paying bills.

This guide explains how FPX transfers work, where you can use them, and how businesses can accept FPX payments through Airwallex's platform.

What is FPX?

FPX is Malaysia’s real-time online payment gateway. It lets your customers pay directly from their bank accounts, without needing a credit card or digital wallet. Payments happen instantly, and both you and your customer receive confirmation right away.

The system is operated by Payments Network Malaysia Sdn Bhd (PayNet), the national payment network for Malaysia. FPX is supported by all major Malaysian banks, including Maybank, CIMB, Public Bank, RHB, Hong Leong Bank, and more. The gateway is available 24/7, so your customers can pay any time, even on weekends and public holidays.

How an FPX transfer works

When a customer selects FPX at checkout, the system acts as a bridge: it connects your business directly to the customer’s bank without you ever seeing their login details or account information. All banking credentials remain private between the customer and their bank.

Once the customer authorises the payment, the transfer completes instantly. You receive confirmation right away, allowing you to process orders without delay.

How to pay with FPX at checkout

Paying with FPX is straightforward and fast. Customers use their existing internet banking credentials, so there’s no need for new accounts or logins. Here’s how the process works:

Step 1: Select FPX at checkout

At the merchant’s checkout page, customers choose FPX from the list of available payment options, alongside credit cards and digital wallets.

Step 2: Choose a bank

The system displays all major Malaysian banks that support FPX. Customers select their bank to proceed.

Step 3: Redirect to the bank’s secure portal

The payment gateway securely redirects customers to their bank’s online banking portal – the same portal they'd normally use to access internet banking.

Step 4: Log in and verify

Customers log in with their internet banking credentials. Banks may require additional security verification, such as a one-time password sent via SMS.

Step 5: Review payment details

Before authorising the transfer, customers can review the merchant’s name, the payment amount, and the account the funds will come from.

Step 6: Authorise payment

Once confirmed, the payment transfers instantly from the customer’s account to the merchant’s account.

Step 7: Receive confirmation

Customers are redirected back to the merchant’s website with a payment confirmation. Banks typically also send a confirmation via SMS or email.

Where FPX is used in Malaysia

FPX is widely adopted across Malaysia’s digital economy, from large marketplaces to independent online stores. Because payments are confirmed in real time, it’s especially valuable for businesses that need immediate confirmation before fulfilling orders or activating services.

Here are four industries that commonly use FPX in Malaysia:

1. eCommerce

Online retail is FPX’s most common application. Malaysian eCommerce platforms use FPX for everything from electronics and fashion to groceries. Real-time confirmation allows merchants to start packing and shipping as soon as payment is completed, reducing fulfilment delays.

2. Bill payments

FPX is also widely used for recurring and one-off bills, including:

• Utilities (electricity, water, gas)

• Teleconmunications (mobile and internet)

• Insurance premiums (health, motor, life)

• Government fees and taxes

• Education-related payments

Because FPX is available 24/7, customers can pay their bills anytime. This reduces the number of late or missed payments.

3. Subscriptions and services

Some subscription-based businesses offer FPX as a payment option, though each transaction requires manual authorisation. This gives customers explicit control over every charge, unlike card payments that run automatically in the background.

4. Travel and bookings

FPX is commonly accepted on Malaysian travel platforms for flights, hotels, and tours. Instant payment confirmation allows bookings to be secured immediately, improving the customer experience while reducing failed or pending reservations.

FPX limits, fees, and security: What businesses should know

Understanding how FPX handles transaction limits, fees, and security helps businesses plan payments, manage cash flow, and set the right expectations for customers.

Transaction limits and hours

FPX transaction limits vary by bank and account type.

For consumer payments, limits are typically tied to the customer’s personal internet banking settings, which often cap single transactions at around RM30,000¹. Daily transfer limits also apply. Corporate accounts generally support much higher limits as compared to consumer accounts.

FPX operates 24/7, including weekends and public holidays. For businesses, this means payments can be accepted and confirmed at any time, which is especially useful for online stores and services serving customers across different time zones.

Fees and refunds

FPX typically costs less than credit card processing. For example, Bank Islam charges up to RM3 per FPX transaction². Most businesses absorb these fees rather than passing them on to customers, which makes FPX an attractive checkout option for customers.

If a customer needs a refund, it must be initiated by the merchant. After the merchant initiates a refund, the funds typically take three to five working days to return to the customer’s bank account.

Security and authentication

FPX transactions are secured through customers’ own banks, using encrypted connections and bank-level authentication. Because customers complete payment directly in their bank’s portal, your business never handles or stores banking credentials. This reduces your exposure to sensitive financial data.

Most banks also require multi-factor authentication, such as one-time passwords or biometric verification, adding an extra layer of protection against unauthorised transactions.

For merchants, this means lower fraud risk compared to many card-based payments, while still offering customers a familiar and trusted checkout experience.

FPX vs DuitNow and bank transfers

Malaysia offers several online payment methods, each designed for different use cases. Here’s a comparison between popular online payment methods, so you can choose the most suitable option for your business.

FPX vs DuitNow OBW and DuitNow QR

At a glance, here’s how FPX vs DuitNow OBW vs DuitNow QR differ:

• FPX: Designed for online checkout, providing instant confirmation and seamless integration with merchant systems.

• DuitNow OBW: A real-time bank and digital wallet payment option for paying merchants via redirect at checkout, using customers’ existing internet banking or wallet login, with instant confirmation to the merchant.

• DuitNow QR: Intended for in-person payments and invoice settlements via QR code scanning.

FPX is designed specifically for eCommerce transactions. It allows customers to pay directly from their bank accounts at checkout, with payments confirmed instantly and automatically reflected in the merchant’s system.

DuitNow (OBW) serves a different purpose. It lets customers pay merchants online via a secure redirect from the checkout page to their preferred bank or digital wallet, then returns them to the merchant site with real‑time payment confirmation. It’s typically used for eCommerce and bill payments by customers who prefer to pay directly from their bank or wallet instead of using cards.

DuitNow QR is used mainly for in-person payments and invoice settlements. Customers scan a QR code using their banking app to complete payment, which is common in retail stores, restaurants, and bill payment scenarios.

FPX vs IBG and instant transfer

Here’s a quick overview of how FPX vs IBG vs instant transfers work:

• FPX: Real-time online payments at checkout with instant confirmation for merchants.

• IBG (Interbank GIRO): Batch-processed transfers between banks, which can take hours or a day to clear.

• Instant transfer: Real‑time interbank transfers between Malaysian banks, typically used for ad‑hoc payments between individuals and businesses.

FPX processes payments in real-time and integrates directly with merchant checkout systems. Customers pay from their bank accounts during checkout, and merchants receive instant confirmation, so orders can be fulfilled immediately without manual verification.

IBG transfers are batch-processed by banks several times a day. This means payments aren’t credited immediately, and merchants must wait for the transfer to clear before fulfilling orders. IBG works well for larger, scheduled payments but isn’t ideal for fast-moving eCommerce transactions.

Individual banks offer instant transfers via the nationwide DuitNow / Instant Transfer network, so customers can send money between different banks in seconds. Unlike FPX, instant transfers are usually initiated inside internet or mobile banking rather than at checkout, and customers need to enter the recipient’s account number or DuitNow ID themselves.

How to accept FPX with Airwallex

You can accept FPX payments through Airwallex, alongside 160+ local payment methods. This makes it easy to give customers the options they prefer while managing everything in one place. Payments are collected and settled in Malaysian ringgit (MYR), so you avoid extra currency conversions and fees.

Checkout plugins and APIs

Airwallex Checkout works for businesses of all sizes. If you use Shopify, WooCommerce, or Magento, you can add FPX with pre-built plugins – no complex setup needed.

For custom websites, our Payments API lets you build a checkout experience that fits your brand, while we handle the connection to FPX and other payment networks. Once enabled, FPX is automatically shown to customers based on their location and currency.

Like-for-like MYR settlement and FX

When you accept FPX through Airwallex, funds are collected and settled in MYR. You get exactly what your customer paid, minus the processing fee. If you need other currencies, you can convert at interbank rates, or simply hold MYR to pay local suppliers or employees directly.

For platforms and marketplaces

Platforms and marketplaces can use our Connected Accounts feature to offer FPX payments to all their merchants. It also supports split payments, automatically routing funds to sellers, platform fees, and other parties. This reduces manual reconciliation and ensures everyone gets paid accurately and on time.

Frequently asked questions (FAQs)

Is FPX the same as using my online banking to transfer money?

No, FPX is not the same as a standard online banking transfer. FPX is a real-time payment gateway that lets customers pay directly from their bank account at a merchant’s checkout, with instant confirmation for both parties. Unlike a manual online banking transfer, FPX is integrated with the merchant’s system, so payments are automated, secure, and verified immediately – removing the need for customers to enter account details or send proof of payment.

How is FPX different from DuitNow OBW or DuitNow QR payments?

FPX differs from DuitNow OBW and DuitNow QR in purpose and workflow. FPX is designed for online checkout payments, letting customers pay directly from their bank account with instant confirmation to the merchant. DuitNow OBW is meant for person-to-person transfers, where you send money using a mobile number or ID, and DuitNow QR is for in-person payments or invoice settlements via a scannable QR code.

How long does it take to receive an FPX refund from a merchant?

FPX refunds typically take three to five working days to process. The merchant must initiate the refund – the consumer can't request it directly from your bank or the payment processor. Once the merchant processes the refund request, the funds return to the consumer’s account through the FPX network.

Can I reverse an FPX payment if I change my mind?

FPX payments are final once you authorise them through your bank's portal. You cannot reverse an FPX transaction yourself. If you need a refund, you must request it from the merchant according to their refund policy.

What are the maximum transaction limits for FPX payments?

Individual accounts typically have a maximum limit of RM30,000 per transaction, though your actual limit depends on your bank's internet banking transfer limits. Corporate accounts generally have higher limits, depending on the bank and the business's relationship with the bank.

Can I set up automatic recurring payments using FPX?

No, FPX does not support automatic recurring payments. Each FPX transaction requires manual authorisation by the payer, so businesses cannot set up automatic deductions like they can with credit cards or direct debit arrangements. This means FPX works best for one-time payments rather than subscription-based billing.

Which Malaysian banks allow me to use FPX for online payments?

All major Malaysian banks participate in the FPX network, including Maybank, CIMB, Public Bank, RHB, Hong Leong Bank, AmBank, Bank Islam, HSBC Malaysia, and Standard Chartered Malaysia. The full list of participating banks appears when you select FPX at checkout.

How does Airwallex handle FPX payments in MYR versus other currencies?

Airwallex settles FPX payments in MYR on a like-for-like basis, meaning you receive the exact amount your customer paid without forced currency conversion. If you need to convert to other currencies for international operations, you can do so at interbank rates when needed, or hold MYR balances in your Airwallex account for local payouts to suppliers or employees in Malaysia.

Sources:

1. https://www.maybank2u.com.my/maybank2u/malaysia/en/personal/faq/accounts_and_banking/financial_process_exchange_fpx.page

2. https://www.bankislam.com/wp-content/uploads/Fees-and-Charges-LMC.pdf

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).