Forecast Period
|
2026-2030
|
Market Size (2024)
|
USD 181.88 Million
|
Market Size (2030)
|
USD 357.41 Million
|
CAGR (2025-2030)
|
11.75%
|
Fastest Growing Segment
|
Self-hosted
|
Largest Market
|
West Malaysia
|
Market Overview
Malaysia
Payment Gateway Market was valued at USD 181.88
Million in 2024 and is expected to reach USD 357.41 Million by 2030 with a CAGR
of 11.75% during the forecast period.
The Malaysia
Payment Gateway Market is experiencing rapid growth, driven by the country’s
accelerating digital economy, rising internet penetration, and increasing
consumer preference for cashless transactions. With over 90% internet
penetration and the widespread adoption of smartphones, digital payments have
become a preferred mode of transaction, particularly among the younger,
tech-savvy population. The Malaysian government’s support for a cashless
society, through initiatives like the MyDigital blueprint and Bank Negara
Malaysia’s Financial Sector Blueprint, is further propelling the adoption of
online payment infrastructure. Payment gateways in Malaysia facilitate secure
and efficient electronic transactions between merchants and customers, enabling
businesses to accept payments via credit cards, debit cards, online banking
(FPX), and e-wallets such as Touch ’n Go, Boost, and GrabPay.
The market is
segmented based on type, enterprise size, payment method, and end-user
industry. Hosted payment gateways are leading the market due to their ease of
use, low setup costs, and strong demand from SMEs. Self-hosted and
bank-integrated gateways are also gaining popularity among large enterprises
seeking customized solutions with greater control and security. In terms of
enterprise size, SMEs represent a substantial market share owing to their
increasing digital adoption and reliance on simple, cost-effective payment
solutions. Large enterprises, meanwhile, leverage more complex systems for
handling high transaction volumes and cross-border payments. Payment method
segmentation reveals strong growth in e-wallet and QR code-based payments,
driven by mobile-first consumer behavior and integration with regional payment
networks like DuitNow and Indonesia’s QRIS. Credit and debit cards continue to
be widely used, though their relative share is declining in favor of real-time
account-to-account and mobile wallet payments.
Key end-use
industries include retail and e-commerce, which account for the largest market
share, followed by travel & hospitality, education, and healthcare. As
online shopping platforms expand and consumer confidence in digital
transactions increases, payment gateways are becoming a critical component of
the digital commerce ecosystem. Major players in the Malaysian market include
iPay88, eGHL, Razer Merchant Services, Stripe, PayPal, and 2C2P, each offering
varying levels of integration, security, and pricing to cater to diverse
business needs. Overall, the Malaysian Payment Gateway Market is poised for
sustained expansion, underpinned by favorable regulatory frameworks, evolving
consumer preferences, and the rising adoption of fintech innovations across
various sectors.
Key Market Drivers
Surge in E-Wallet and QR
Code Transactions
The rapid expansion of
mobile wallets and QR code-based payments is significantly driving the payment
gateway market in Malaysia. E-wallet usage has grown tremendously, with over
63% of Malaysians actively using mobile wallets for daily purchases. QR code
transactions more than doubled in recent years, increasing from 360 million to
870 million transactions annually. The number of merchants accepting QR
payments has risen to over 2.6 million, creating a large base for payment
gateway integration. One of the most popular e-wallets in Malaysia now has
over 20 million registered users, with monthly transactions exceeding RM 15
billion. Additionally, QR code payments now account for approximately 45% of
all in-store digital transactions, overtaking traditional debit card use. These
figures reflect a strong preference for contactless, mobile-first payment
methods, encouraging merchants and service providers to integrate flexible,
multi-channel payment gateways.
High Smartphone Penetration
and Digital Connectivity
Digital infrastructure in
Malaysia is well-developed, laying a strong foundation for payment gateway
adoption. Mobile subscription penetration exceeds 130%, with over 44 million
active mobile connections in a country of around 34 million people. Mobile
internet penetration has surpassed 90%, with nearly the entire population
having access to 4G networks, and 5G coverage has now reached over 82% of the
population. Median 5G internet speeds have reached 452 Mbps, nearly five
times faster than 4G. Urban digital adoption is strong, with 96% of businesses
having access to internet-enabled systems. This environment fosters the
seamless operation of online transactions and enhances the reliability of
gateway systems across both urban and semi-urban areas, making cashless
payments more accessible.
Strong Government Support
and Policy Push
Malaysia’s government is
actively fostering a cashless economy through digital transformation
initiatives and financial incentives. Over RM 2 billion has been distributed
via e-wallet subsidies through various national programs. More than 85% of
youth aged 18–30 have claimed these e-wallet incentives, driving early
adoption. Digital banks licensed in the past few years have each onboarded over
500,000 users in their first six months of operation. Public-private
partnerships aim to achieve 400 digital transactions per capita annually by
2025. Already, digital payment transactions per capita have exceeded 300,
showing rapid progress. This policy momentum is encouraging businesses of all
sizes to adopt compliant, secure, and scalable payment gateway systems that
align with national digital goals.
E-Commerce Growth and
Evolving Consumer Behavior
Malaysia’s e-commerce
sector continues to expand rapidly, with over 78,000 registered online
businesses, up more than 60% in the past five years. Online retail revenue has
reached over RM 1 trillion annually, driven by growing consumer trust in
digital platforms. More than 52% of users now use e-wallets for e-commerce
purchases, and around 48% prefer e-wallets for food delivery and daily
expenses. Real-time
bank transfers now account for 39% of all e-commerce payments, highlighting a
shift away from traditional card payments. Meanwhile, 83% of card payments made
in stores are now contactless, underlining the growing consumer expectation for
speed and convenience. These trends require retailers and service providers to
adopt payment gateways that support a broad mix of payment methods and instant
processing features.
Cross-Border Payment
Integration within ASEAN
Malaysia is a leading
player in the ASEAN cross-border digital payment space, strengthening its
regional interoperability. QR payment frameworks have been successfully
integrated with Thailand, Singapore, Indonesia, and Cambodia, allowing
consumers to make seamless cross-border purchases. Currently, about 45% of
government-to-government cross-border transactions occur through these
QR-enabled systems. Malaysia's national QR platform is already connected to over
5 foreign central banks, with future connections planned with India and the
Philippines. In addition, more than 38% of Malaysian outbound tourists used
mobile wallets for payments during travel in Southeast Asia. These
developments are pushing businesses to adopt payment gateways that support
foreign currency transactions, real-time settlement, and international
compliance standards.

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Key Market Challenges
High Dependence on Foreign
Gateway Technologies
A significant portion of
Malaysia's payment gateway infrastructure is still reliant on foreign
technologies and global platforms such as Stripe, PayPal, and Braintree. While
these platforms offer seamless global functionality, they also lead to several
structural issues. First, local businesses often pay higher transaction fees
for cross-border settlements, sometimes between 2.9% to 4.5% per transaction,
which impacts margins for SMEs. Second, foreign gateways may not always align
with local regulations, requiring costly compliance adaptations. Moreover, the
lack of localized customer support and currency conversion inconsistencies can
cause operational delays. As these platforms process a high volume of Malaysian
transactions outside the country, valuable transactional data is housed
overseas, raising data sovereignty concerns. Additionally, smaller local
gateway providers find it difficult to compete with the advanced APIs, fraud
detection systems, and integrations offered by global players. This uneven
playing field discourages domestic innovation and makes the market dependent on
pricing and policy shifts in foreign economies. Unless Malaysia can boost the
technological capability and adoption of homegrown solutions, this dependency
could undermine the country’s aspirations for payment autonomy and resilience.
Limited Payment
Infrastructure in Rural Areas
Although Malaysia has a
relatively high internet penetration rate, the disparity between urban and
rural digital infrastructure presents a challenge. Many rural businesses,
especially in Sabah and Sarawak, still struggle with unreliable broadband and
mobile connectivity. Only around 65% of rural households have stable internet
access, compared to over 90% in urban centers. Consequently, small vendors in
these areas are often excluded from digital payment ecosystems, relying instead
on cash. For payment gateways to function effectively, real-time connectivity
is essential—something not always possible in remote regions. Moreover,
awareness of digital payment benefits remains low in rural SMEs, where many
operators still lack basic digital literacy. Payment gateway providers are
hesitant to expand aggressively into these markets due to low transaction
volumes and higher onboarding costs. Without inclusive infrastructure policies,
the payment ecosystem risks becoming fragmented, with urban areas achieving
high tech adoption and rural regions remaining underserved. This gap limits the
full potential of Malaysia’s push toward nationwide digital payments and
financial inclusion.
Data Privacy and
Cybersecurity Concerns
The increasing volume of
digital transactions raises the stakes for data privacy and cybersecurity in
Malaysia’s payment gateway sector. As consumers input sensitive information
like credit card details, addresses, and personal identification, the risk of
data breaches and fraud becomes more pronounced. In 2023 alone, Malaysia
recorded over 27,000 cybercrime cases, with financial fraud accounting for more
than 60% of them. Many local payment gateways, especially SME-focused
providers, lack robust cybersecurity protocols such as multi-layered
authentication, tokenization, or AI-based fraud detection. Additionally, while
the Personal Data Protection Act (PDPA) exists, enforcement remains inconsistent.
Payment gateway operators are also exposed to phishing, ransomware attacks, and
system outages. In many cases, the lack of a centralized incident response
framework delays containment and customer restitution. Moreover, consumers are
becoming increasingly aware of data misuse and hesitate to trust lesser-known
gateways, leading to brand hesitancy. This puts pressure on gateway providers
to invest significantly in cybersecurity measures—investments that smaller
companies may not be able to afford. As cyber threats become more
sophisticated, Malaysia’s payment ecosystem must strike a balance between
seamless user experience and airtight security infrastructure.
Fragmented Regulatory
Landscape and Licensing Delays
While Bank Negara Malaysia
(BNM) has taken steps to modernize financial regulations, the payment gateway
market still faces hurdles due to fragmented oversight and delayed licensing.
Payment gateway providers must comply with multiple regulations from BNM, the
Securities Commission, the Companies Commission, and even the Malaysian
Communications and Multimedia Commission (MCMC). These overlapping requirements
increase onboarding time, legal consultation costs, and compliance complexity.
The approval process for new fintech operators can take 6–12 months, limiting
market entry and innovation. Additionally, inconsistent interpretations of
rules—for example, around cross-border settlement or digital banking
integration—can disrupt business models. Payment gateway providers also face
ambiguity in applying anti-money laundering (AML) and Know Your Customer (KYC)
protocols across e-wallet and FPX integrations. For SMEs and startups without
legal expertise or capital, these barriers reduce market participation. The
lack of a centralized fintech sandbox or regulatory innovation hub makes it
harder to test and scale new payment solutions. Without streamlining regulatory
frameworks, Malaysia risks stifling innovation in one of its most promising
digital sectors.
Low Profit Margins and
Pricing Pressure on Gateways
Despite growing transaction
volumes, many payment gateway providers in Malaysia operate on thin profit
margins. Competitive pricing is driven by aggressive fee structures from both
local players and global providers like Stripe and PayPal. While established
players may charge 2.5%–3% per transaction, newer entrants often undercut to
gain market share, sometimes charging as low as 1.5%. This race to the bottom
pressures all players to lower costs, which in turn limits investments in
security, innovation, and customer support. Moreover, banks and e-wallet
providers that offer direct merchant onboarding—such as Maybank's M2U Pay or
Touch ’n Go Merchant features—bypass gateways altogether, reducing addressable
market share. Add to this the increasing costs of compliance, fraud detection
systems, and technology upgrades, and the business case for small to mid-tier
gateway operators becomes strained. Additionally, merchants now expect
multi-currency support, instant settlement, and integration with accounting
software—all of which raise operational complexity and costs. Unless gateway
providers can diversify revenue through value-added services, their long-term
sustainability may be at risk in this intensely price-sensitive market.
Key Market Trends
Growing Demand for
Real-Time Settlement and Instant Payouts
The push for faster
financial settlements is reshaping the expectations from payment gateways in
Malaysia. Businesses—especially e-commerce sellers, food delivery platforms,
and gig economy workers—are seeking real-time or same-day settlement solutions
to maintain cash flow. Traditional T+2 or T+3 settlement cycles are
increasingly viewed as outdated. Responding to this, major gateways have
started offering near-instant payouts, sometimes within hours, especially for
high-volume merchants. Real-time bank transfer systems like FPX and DuitNow
have enabled gateways to process payments directly between accounts without
waiting for card networks or intermediaries. This functionality is particularly
attractive for SMEs and microenterprises that need immediate access to funds
for inventory restocking, supplier payments, or employee salaries.
Additionally, some gateways are integrating with digital banks and neo-banks to
offer 24/7 settlement features, bypassing the constraints of traditional
banking hours. This trend is also influencing consumer behavior, as users
expect refunds, cashback, or partial payments to reflect instantly. The rise in
instant settlement features demands that gateway providers invest in secure
infrastructure, automated fraud checks, and real-time reconciliation systems.
In a competitive market, those who can offer reliable, fast payouts are gaining
a significant edge—especially in sectors with thin margins and high transaction
volumes.
Expansion of Cross-Border
and Multi-Currency Capabilities
Malaysia’s strategic
position in ASEAN and the growing volume of cross-border trade and tourism are
accelerating the demand for payment gateways with multi-currency and
international capabilities. As local businesses expand beyond
borders—particularly into Singapore, Indonesia, and Thailand—they require
gateways that support international card schemes, dynamic currency conversion
(DCC), and multi-currency pricing (MCP). Additionally, Malaysia’s integration
with the regional QR network enables tourists to make purchases using their
domestic wallets, such as Thailand’s PromptPay or Indonesia’s QRIS. Gateways
that offer seamless FX conversion, real-time settlement, and transparent fee
structures are gaining preference. Furthermore, cross-border e-commerce is booming,
with Malaysian platforms exporting fashion, electronics, and halal products to
wider markets. This necessitates robust fraud management, compliance with
multiple jurisdictions, and compatibility with global platforms like Visa,
Mastercard, Alipay, and UnionPay. The need for localized checkout experiences
across geographies also drives innovation in language support, tax handling,
and logistic tie-ins. In response, Malaysian gateway providers are partnering
with international acquirers and fintech firms to expand coverage. This trend
reflects a shift toward borderless commerce, where gateway solutions must serve
both domestic and international buyer segments efficiently.
Emergence of Value-Added
Services within Gateways
Payment gateways in
Malaysia are evolving from pure transaction processors to full-service
financial platforms offering value-added services (VAS). Merchants now expect
more than just payment acceptance—they seek tools for business management,
customer engagement, and performance analytics. As a result, many gateway
providers have started offering built-in features such as invoicing, customer
data dashboards, fraud analytics, tax filing assistance, and subscription
management. Others are offering integration with accounting software like
QuickBooks or Xero, along with support for e-invoicing and automated
bookkeeping. Some even provide working capital loans based on transaction
history, giving SMEs access to credit with minimal paperwork. Others embed loyalty
programs and personalized offers to boost customer retention. This
transformation turns gateways into embedded fintech platforms, where payments
serve as the foundation for a wider suite of services. The trend is
particularly strong among SME-focused providers, who see value in bundling
services to differentiate in a highly competitive market. For users, this
enhances operational efficiency, reduces reliance on multiple vendors, and
supports business scalability. As Malaysia’s digital economy matures, value-added
services are set to become a key competitive differentiator among gateway
providers.
Segmental Insights
Type Insights
Hosted segment dominated in the Malaysia Payment Gateway market in
2024 due
to its affordability, ease of implementation, and growing adoption among small
and medium-sized enterprises (SMEs). A hosted gateway refers to a third-party
platform that handles the entire payment process on behalf of the merchant,
including security, transaction routing, and compliance with data protection
regulations. This model significantly reduces the operational burden on
businesses, especially those with limited technical expertise or resources to
maintain their own payment infrastructure.
One of the
primary reasons for its dominance is the rapid digitalization of SMEs, which
make up over 97% of all businesses in Malaysia. With more SMEs transitioning to
online retail, especially through platforms like Shopify, WooCommerce, and
Lazada, hosted gateways offer a plug-and-play solution that ensures quick
onboarding and immediate functionality. Hosted gateways also simplify PCI-DSS
compliance, as sensitive customer data is not stored on the merchant’s
servers—this is a major advantage for small businesses that lack in-house
cybersecurity capabilities.
Furthermore,
hosted gateways often include integrated features such as fraud protection,
multi-currency support, e-wallet compatibility, and mobile responsiveness,
which cater well to Malaysia’s digital payment trends. As e-wallets and QR code
usage rise, many hosted gateways have added seamless support for platforms like
Touch ’n Go, GrabPay, and Boost, making them attractive for both merchants and
consumers. Additionally, Malaysia’s robust government support for digital
payment adoption—through e-invoicing mandates, digital grants, and QR
standardization—favors low-cost, scalable solutions.
Hosted gateways
are also preferred for subscription-based models, marketplaces, and
mobile-first businesses, which require recurring billing and payment links.
This segment’s user-friendly interface, bundled services, and low entry
barriers position it as the default choice for the majority of online
businesses in 2024, driving its dominance in the Malaysian market.
Enterprise Size Insights
Large Enterprises segment dominated the Malaysia Payment Gateway market in
2024 due to
their higher transaction volumes, complex operational needs, and emphasis on
secure, customized payment solutions. These enterprises often operate across
multiple channels—online, offline, and mobile—and require advanced features
like fraud detection, real-time analytics, multi-currency support, and API
integrations. Their ability to invest in robust payment infrastructure,
including self-hosted or hybrid gateways, gives them a competitive edge.
Additionally, many large enterprises engage in cross-border trade, driving
demand for global payment compatibility and faster settlement cycles, which
further strengthens their dominance in Malaysia’s evolving digital payment
ecosystem.

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Region Insights
Largest Region
West Malaysia dominated the Malaysia Payment
Gateway market in 2024 due to its advanced digital infrastructure, higher
population density, concentration of commercial activity, and widespread
internet accessibility. The region, which includes key urban and economic hubs
such as Kuala Lumpur, Selangor, Penang, and Johor, accounts for the majority of
the nation’s GDP and hosts a significant portion of Malaysia’s retail, banking,
and e-commerce operations. These areas have well-established telecommunications
networks, with 4G coverage exceeding 98% and widespread 5G availability,
supporting the seamless operation of digital payment systems.
A large share of
Malaysia’s SMEs and large enterprises are headquartered in West Malaysia, and
many have rapidly adopted online business models in response to rising consumer
demand for digital transactions. Additionally, West Malaysia benefits from a
high concentration of tech-savvy consumers, with smartphone penetration
exceeding 90% and internet usage rates among the highest in the country. This
creates a favorable environment for businesses to integrate hosted and
self-hosted payment gateways that support a variety of payment methods,
including e-wallets, FPX, credit/debit cards, and QR code-based systems.
The region also
serves as the primary launchpad for fintech innovations, digital banking
pilots, and government-led cashless initiatives. Financial institutions,
fintech startups, and payment gateway providers typically test and roll out new
technologies in West Malaysia before expanding to other regions. Moreover, the
proximity to regulatory bodies, financial hubs, and skilled digital talent
enables faster integration and compliance with security standards such as
PCI-DSS.
Additionally, consumer
behavior in West Malaysia is aligned with global digital trends, with higher
demand for contactless payments, subscription services, and omnichannel
experiences. The confluence of digital maturity, economic concentration, and
innovation readiness makes West Malaysia the leading region in the country’s
payment gateway ecosystem in 2024.
Recent Developments
- In March 2025, SenangPay
partnered with India-based fintech firm Pine Labs to introduce instalment
payment plans (IPP) for Malaysian businesses via a single integration. The
collaboration enables merchants to offer up to 24-month instalment options
without managing multiple bank integrations, enhancing customer affordability
for high-value purchases. This partnership reflects SenangPay’s ongoing efforts
to deliver flexible, streamlined payment solutions that support merchant growth
and meet evolving consumer expectations in the Malaysian digital payments
landscape.
- In April 2024, Soft Space
and JCB International launched Malaysia’s first JCB payment gateway, expanding
their strategic alliance started in 2022. The initiative builds on earlier
successes, including a central bank digital currency trial and HLB merchant
integrations. Leveraging Soft Space’s fintech infrastructure and JCB’s global
reach, the new gateway diversifies digital transaction offerings and enables
local businesses to access over 156 million JCB cardmembers, positioning
Malaysia to benefit from cross-border payment opportunities and rising
international payment demand.
- In May 2024, SenangPay
achieved major milestones, including winning Best Solution – Payments and
Collections at The Asset's Triple A Awards 2024. Building on its roots as a
local payment solution provider, SenangPay continues to innovate with features
such as SPayLater, Payout API, and senangTap pay2phone. With Malaysia’s shift
toward cashless transactions, the company is increasing investment in seamless
payment technology for both online and offline merchants, while expanding its
partnerships across local and private sector stakeholders.
- Soft Space and JCB
International launched Malaysia’s first JCB payment gateway in April 2024,
reinforcing their 2022 strategic partnership. The gateway, following a
successful CBDC trial, enables fast integration with JCB’s network of over 156
million global cardholders via Soft Space’s API infrastructure. Merchants
benefit from secure, scalable access to international payment capabilities
without direct connectivity to JCB, aligning with market trends for
diversified, secure digital transactions and enhancing Malaysia’s
competitiveness in global e-commerce and retail segments.
Key
Market Players
- iPay88
- eGHL
- Razer
Merchant Services
- SenangPay
- Billplz
- M2uPay
- Curlec
- KiplePay
- Stripe
- PayPal
By Type
|
By Enterprise Size
|
By Payment Method
|
By Vertical
|
By Region
|
- Hosted
- Bank
Integrated
- Self-hosted
|
- Large
Enterprises
- Small &
Medium Enterprises
|
- Credit Card
- Debit Card
- E-Wallet
- Others
|
- Retail
- Travel &
Hospitality
- Healthcare
- Education
- Government
- Utilities
- Others
|
- West
Malaysia
- East Malaysia
|
Report Scope:
In this report, the Malaysia Payment Gateway Market
has been segmented into the following categories, in addition to the Payment
Method trends which have also been detailed below:
- Malaysia Payment Gateway
Market, By Type:
o Hosted
o Bank Integrated
o Self-hosted
- Malaysia Payment Gateway
Market, By Enterprise Size:
o Large Enterprises
o Small & Medium Enterprises
- Malaysia Payment Gateway
Market, By Payment Method:
o Credit Card
o Debit Card
o E-Wallet
o Others
- Malaysia Payment Gateway
Market, By Vertical:
o Retail
o Travel & Hospitality
o Healthcare
o Education
o Government
o Utilities
o Others
- Malaysia Payment Gateway
Market, By Region:
o West Malaysia
o East Malaysia
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Malaysia Payment Gateway Market.
Available Customizations:
Malaysia Payment Gateway Market report with
the given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
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profiling of additional market players (up to five).
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