Malaysia offers a wide mix of payment options across in-store and online channels. When planning how to accept payments in Malaysia, merchants should weigh established habits against the steady shift towards digital payment choices. You also look at how each method shapes conversion, reliability, operational effort, and cost. This guide brings those elements together to help understand how the main payment methods in Malaysia work.
POS vs online: where each method leads
In-store and POS
Cash still plays a central role at the till. It accounts for around 32% of POS payments in Malaysia, which keeps it a major method for everyday retail. Many small merchants, hawkers, and service providers continue to rely on it for simplicity.
At the same time, digital payment usage continues to expand. QR payments, especially through DuitNow QR, have grown quickly because they are low-cost for merchants and easy for customers to adopt. Wallets and tap-to-pay cards give buyers a quick way to pay, and you see these methods spread from large chains to smaller shops. The government aims for 90% cashless transactions by 2025, which encourages more sellers to add QR and wallet options.
Online and e-commerce
The e-commerce market in Malaysia shows a different split. Industry data places cards at about a quarter to a third of online transaction value, while digital wallets continue to gain traction. A2A bank transfer schemes, including FPX and DuitNow, hold a strong position and are the most used payment method in Malaysian e-commerce.
Wallets and bank transfers influence checkout conversion in a meaningful way. Shoppers often choose these familiar digital payment methods over cards, and many prefer not to store card details online. If you only offer cards, you see a higher drop-off in the Malaysian e-commerce market.
Bank transfers and A2A
Real-time bank transfers form a major part of the digital payment mix in Malaysia. FPX and DuitNow offer direct bank-to-bank transfers with wide bank coverage and fast confirmation. These methods show low failure rates and suit buyers who prefer clear control of their payment authorisations.
Credit transfer services make up 43% of all e-payment transactions, with DuitNow Transfer responsible for 39% of credit transfer volume. Growth remains steady, supported by broad consumer trust and convenience.
Buyers choose bank transfers for:
- Large-ticket items such as travel bookings and electronics.
- Situations where they do not want to store card data
- B2B and bill payments.
For many global merchants, supporting FPX or DuitNow is essential when planning how to accept payments in Malaysia.
QR payments and DuitNow QR
DuitNow QR is a national, bank-agnostic standard that brings simplicity to both buyers and merchants. It works with banks and a wide range of e-wallets, so you do not need separate QR codes for each method. Buyers scan the same code and pay through their preferred bank or wallet.
Bank Negara Malaysia (BNM) highlights “significant take-up” in DuitNow QR adoption. Merchants value the lower cost structure compared with some other digital payment options, and the straightforward setup encourages small merchants to use it.
A Mastercard study shows that 64% of Malaysians used QR payments in 2024, close to the 70% who used cash. About 85% say they plan to continue using QR payments. This points to rising familiarity and comfort with scanning to pay.
Credit and debit cards
Cards hold a clear role in the Malaysian digital payment market, especially for travel, subscription services, and cross-border purchases. Cards account for about 24.9% of e-commerce transaction value.
Even so, Malaysians use cards for only 28% of their online purchases. Buyers turn to bank transfers and wallets for everyday purchases, partly for security reasons and partly for convenience. If you serve Malaysian shoppers, you strengthen acceptance by offering these alternatives alongside cards.
E-wallets and super apps
Wallet usage grew quickly between 2022 and 2023. Adoption rose from 63% to 88% of Malaysians, and overall transaction value nearly doubled. Buyers use wallets for transport, food delivery, retail, bill payments, and online shopping.
The average monthly spend per user reached RM 388 (USD 94) in the latest Oppotus study. This points to wallets playing a consistent role in both online and in-store payments.
Key players include Touch ‘n Go eWallet, GrabPay, ShopeePay, Boost, BigPay, and MAE by Maybank2u. Many of these wallets sit inside wider super app ecosystems that combine mobility, rewards, and shopping tools, which keep users active.
Wallets are popular for:
- Small-ticket daily purchases.
- Promotions such as cashback and vouchers.
- Transport and toll payments.
- Regional travel across Southeast Asia where cross-border wallet acceptance is supported.
Cash and cash-on-delivery
Cash still matters for segments of the Malaysian population. Many buyers rotate between cash and digital methods depending on context. Mastercard reports that 70% of Malaysians used cash in the past year.
In e-commerce, PCMI data suggests that cash and cash-on-delivery together account for about 15% of payments. These methods remain important for rural buyers, older demographics, and risk-averse shoppers who prefer settling payment at delivery. As you expand in Malaysia, you consider whether offering COD helps build trust in early stages.
BNPL and instalment payments
Buy now, pay later (BNPL) accounts for around 8% of e-commerce payments. Popular providers include Atome, Grab PayLater, and ShopBack PayLater.
BNPL appeals to younger buyers and to those making mid-range purchases. It can lift conversion and basket size, although you weigh this against credit risk management and regulatory expectations. BNPL also plays a role in subscription-style or repeat purchase models when buyers want predictable instalments.
Payment methods comparison
| Payment method |
Common uses |
Strengths |
Considerations |
| Bank transfers (FPX, DuitNow) |
Large-ticket purchases, travel, bills, B2B, general e-commerce |
Wide bank coverage, trusted, low failure rates |
Must present clearly at checkout to avoid drop-off |
| QR payments (DuitNow QR) |
In-store retail, small merchants, food and beverage |
Simple setup, bank and wallet compatibility, low cost |
Needs clear QR placement and staff familiarity |
| Cards |
Travel, subscriptions, cross-border |
Useful for international customers, supports recurring payments |
Lower share in Malaysian e-commerce; buyers may prefer alternatives |
| E-wallets |
Daily retail, online shopping, transport, promotions |
High adoption, fast checkout, strong local presence |
Multiple wallets require clear presentation so buyers find their preferred option |
| Cash and COD |
Rural buyers, risk-averse shoppers, low-ticket offline purchases |
Builds trust and convenience for some groups |
Handling costs and slower settlement |
| BNPL |
Mid-range purchases, younger demographics |
Helps buyers spread payments, can support conversion |
Requires oversight due to credit risk and regulatory rules |
How to choose which payment methods to offer
Map methods to customer segments and ticket sizes
Different segments prefer different methods.
- High-value and B2B transactions work well with bank transfers such as FPX and DuitNow, as well as cards.
- Everyday retail suits QR, wallets, and cards.
- Rural and risk-averse shoppers often choose cash or COD. QR can help them transition towards digital payment.
- Young, urban buyers show strong uptake of wallets and BNPL.
As you map these segments, look at your product range and basket values. Ask: which methods reduce friction at the exact moment your buyers decide to pay?
Practical integration
When you plan to accept payments in Malaysia, evaluate how to offer digital payment methods efficiently while maintaining local trust. Explore:
- Whether to work with local acquiring or international providers that support Malaysian payment methods.
- How to add FPX, DuitNow, and the most used wallets from day one.
- How to present lower-fee methods such as bank transfers and QR without forcing buyers into a single choice.
- How wallet incentives or promotions might support your acquisition plan.
- Whether tiered pricing can offset cost differences between methods.
- How to present payment options in familiar language, currency, and layout.
- How displaying bank transfer and wallet logos can help buyers trust your checkout.
Planning this early helps you build a payment setup that supports the Malaysian e-commerce market while keeping operational work manageable.
Conclusion
Malaysia’s payment environment blends cash, cards, bank transfers, QR, wallets, and BNPL. Each payment method links to specific buyer habits across POS and e-commerce. When you look closely at your customer base and order values, you can decide which combination helps you accept payments in Malaysia with fewer barriers and higher confidence.
