How to Set Up an Online Payment System in Malaysia for SMEs

Key Takeaway:

• Setting up an online payment system Malaysia requires a business registration (SSM), a corporate bank account, and a functional website or app.
• Malaysian SMEs have multiple gateway options, but the right choice depends on transaction volume, payment methods needed, and integration complexity.
• A Malaysian online payment gateway should support local payment preferences, including FPX, credit/debit cards, and e-wallets.
• Self-onboarding platforms like Razorpay Curlec let SMEs go live within days rather than weeks.
• Ensure security compliance (PCI-DSS) to protect both your business and your customers.

Table of Contents

• How to Set Up an Online Payment System in Malaysia for SMEs
  • Why Online Payments Are Non-Negotiable for Malaysian SMEs
  • What You’ll Need Before You Start
  • Step-by-Step: Setting Up Your Online Payment System
  • How to Choose the Right Payment Gateway
  • Mistakes That Trip Up First-Timers
• FAQs

Cash used to be king in Malaysia. Not anymore.

In 2024, Bank Negara Malaysia reported that e-payment transactions reached 14.7 billion, a clear sign that consumers expect businesses to meet them where they are. And where they are is online, tapping phones and clicking “Pay Now.”

For SMEs, this shift marks a new trend many should keep up with. A shop in Petaling Jaya competing with online Shopee sellers can’t afford to lose customers because it only accepts bank transfers. Neither can a subscription-based SaaS startup in Cyberjaya thrive on recurring billing anymore.

The good news? Setting up an online payment system in Malaysia is far less complicated than it was five years ago. A massive IT team or enterprise-level budget is not what you need, but rather, the right approach and a clear understanding of what’s involved.

What You’ll Need Before You Start

Before you even look at payment gateways, sort out the basics. Following these steps and ensuring they are covered will ensure a smooth setup.

Business Registration

You’ll need a valid SSM registration. Sole proprietors, partnerships, and Sdn Bhd companies can all accept online payments in Malaysia, but your documentation requirements differ slightly. Have your business registration number ready.

Corporate Bank Account

Payment gateways settle funds to a business bank account. If you’re still running transactions through your personal Maybank account, it’s time to open a dedicated corporate bank account. Fortunately, it’s relatively straightforward, and most local banks process this within a week.

A Website or Platform

You need somewhere for customers to actually pay. This could be:

• Your own e-commerce website (Shopify, WooCommerce, custom-built)
• A mobile app
• An invoicing system with payment links

Some gateways offer hosted payment pages if you’re not ready for full integration. This is useful for testing the waters if you’re an SME.

Basic Technical Understanding

You don’t need to be a developer. But someone on your team should understand API basics or be comfortable following integration documentation. Alternatively, many platforms now offer no-code plugins that handle the heavy lifting.

Step-by-Step: Setting Up Your Online Payment System

Here’s the practical breakdown for getting your online payment system Malaysia up and running.

Step 1 — Define What You’re Selling (and How)

It sounds obvious, but this shapes everything. In practice, one-off product sales need different setups than subscription services. A gym charging monthly memberships has different requirements than a boutique selling handbags.

Ask yourself:

• Do I need recurring billing?
• Will customers pay via FPX, cards, or e-wallets?
• What’s my expected transaction volume?

Step 2 — Research Payment Gateway Options

Various options exist for Malaysia’s online payment gateways. Each one has different fee structures, settlement periods, and integration complexities, and they are often tailored to specific business types or industries.

For B2B-focused businesses or those needing recurring payment capabilities, a payment gateway Malaysia provider like Razorpay Curlec offers self-onboarding, getting you live faster without waiting weeks for manual approvals.

Step 3 — Complete the Application

Most gateways require:

• SSM documentation
• Director IC copies
• Bank account details
• Website URL for review

This is typically the case for traditional providers, but self-onboarding platforms streamline the process by letting you upload these documents directly and track approval status online.

Step 4 — Integrate the Gateway

This is where the technical bit happens. Options typically include:

• API integration — Full control, best for custom platforms
• Plugins — Quick setup for WordPress, Shopify, etc.
• Hosted payment pages — Redirect customers to a secure page managed by the gateway

Choose based on your technical resources and timeline. Plugins work brilliantly for SMEs without in-house developers.

Step 5 — Test Before Going Live

Every gateway provides a sandbox environment. Use it and run test transactions before going live. Check that your confirmation emails trigger correctly, and verify funds settlement workflows.

This helps catch any issues that could harm your business, such as charging a customer twice or sending broken receipt links. Before you accept online payments Malaysia-wide, make sure everything works flawlessly.

Step 6 — Go Live and Monitor

Once testing passes, it’s time to go live and switch to production mode. Monitor your transactions closely during your first few weeks. Watch for failed payments, customer complaints, or unexpected fees.

How to Choose the Right Payment Gateway

Not all gateways suit all businesses. You want to opt for gateways that adequately meet your needs, SME or otherwise.

Payment Methods Supported

Malaysians love FPX for direct bank transfers. But younger consumers lean toward e-wallets like Touch ‘n Go and GrabPay, along with credit cards, especially when it comes to higher-value purchases. Your Malaysia online payment gateway should cover all three without requiring multiple integrations.

Pricing Transparency

Some gateways advertise low transaction fees but bury setup costs or monthly minimums in the fine print. Calculate your total cost based on realistic transaction volumes and make sure you can comfortably cover the fees.

Settlement Speed

How quickly do funds hit your account? T+1 (next business day) is standard for many providers, but some take T+3 or longer. For SMEs managing tight cash flow, this matters more than you’d think.

Recurring Payment Support

If your business model involves subscriptions, memberships, or instalment plans, you need a gateway built for recurring billing, and not all are. Razorpay Curlec, for instance, specialises in this area with its payment gateway in Malaysia, making it a strong fit for businesses with ongoing payment needs.

Mistakes That Trip Up First-Timers

• Choosing based on fees alone. The cheapest option isn’t always the best. Poor support or limited payment methods cost more in lost sales than a slightly higher transaction rate.
• Ignoring mobile users. Over 80% of Malaysian internet users access the internet via mobile. If your checkout doesn’t work smoothly on phones, you’re losing customers at the final step.
• Forgetting compliance. PCI-DSS compliance isn’t optional for handling card data. Reputable gateways handle this for you, but verify before signing up.
• Not planning for growth. That RM50/month plan might work now. But what happens when transaction volumes triple? Choose a provider that scales with you.

Getting Started Is Easier Than You Think

Setting up an online payment system in Malaysia comes down to preparation, choosing the right gateway, and testing before you go live. Get those right, and you’re most of the way there.

The good news? Accepting payments online doesn’t have to be complicated, not with self-onboarding platforms that let you skip the lengthy approval queues. Razorpay Curlec’s streamlined setup process gets Malaysian SMEs live within days, with built-in support for recurring payments and all the local payment methods your customers expect.

For businesses needing a reliable payment gateway in Malaysia with strong recurring payment features and fast onboarding, Razorpay Curlec offers a straightforward path to going live. Start accepting online payments with ease today.

References:

1. Promoting Safe and Efficient Payment and Remittance Services. (date n/a)Bank Negara Malaysia.Retrieved on 26th January 2025 from https://www.bnm.gov.my/documents/20124/17493532/ar2024_en_ch1e.pdf

2. How to Open a Bank Account in Malaysia? January 16, 2025.ASEAN Briefing. Retrieved on 26th January 2025 from https://www.aseanbriefing.com/doing-business-guide/malaysia/company-establishment/open-corporate-bank-account-malaysia

3. What Do T+1, T+2, and T+3 Mean? June 14, 2025.Investopedia. Retrieved on 23rd January 2025 from https://www.investopedia.com/ask/answers/what-do-t1-t2-and-t3-mean/

4. PCI Data Security Standard (PCI DSS). (date n/a). PCI Security Standards Council. Retrieved on 26th January 2025 from https://www.pcisecuritystandards.org/standards/pci-dss/

FAQ

How long does it take to set up an online payment system in Malaysia?

A: With self-onboarding platforms, SMEs can typically go live within 3-5 business days after submitting complete documentation. Traditional providers may take 2-4 weeks depending on their approval processes.

What payment methods should Malaysian SMEs offer?

A: At minimum, FPX (online banking), credit/debit cards (Visa, Mastercard), and at least one popular e-wallet like Touch ‘n Go. Offering multiple options reduces cart abandonment.

Do I need a developer to integrate a payment gateway?

A: Not necessarily. Many gateways offer no-code plugins for popular platforms like Shopify and WooCommerce. API integration does require technical knowledge, but it’s optional for most SMEs.

What fees should I expect from a payment gateway in Malaysia?

A: Transaction fees typically range from 1.5% to 3%, depending on payment method and provider. Some gateways charge setup fees or monthly minimums, so always request a full fee breakdown before committing.

Is it safe to accept online payments?

A: Yes, when using a PCI-DSS compliant payment gateway. Reputable providers encrypt all transaction data and handle security compliance on your behalf, protecting both your business and customers.