Enabling your online store with payment methods your customers prefer can help increase sales. But most business owners in Malaysia are not sure which ones those are.
And even if they have identified the payment methods, they may not know how to offer them in their online store.
In this post, I aim to solve both problems: You will learn what payment methods Malaysians prefer to use according to research, and how to enable them in your online store.
What are the payment methods Malaysians prefer?
Based on WorldPay’s 2022 Global Payments Report, Bank Transfer (30%) is the most popular payment method amongst Malaysians, while Prepaid Card (1%) is the most unpopular one.
Although Buy Now Pay Later (BNPL) stands at only 4%, it is a payment method that is growing rapidly in popularity.
How do you enable these payment methods?
Let’s take a look at each of these payment methods and how to enable them in your online store:
#3: Digital Wallet/E-wallets (16%)
#5: Cash on Delivery (COD) (9%)
#7: Buy Now Pay Later (BNPL) (4%)
#1: Bank Transfer (30%)
What it is: Bank Transfer is done through FPX using a payment processor, or using a manual payment method where the buyer will bank in the payment, and send the proof of payment to the seller.
How to enable bank transfer in your store
There are two ways to enable bank transfer in your store.
If you are using FPX, you can use a payment gateway that accepts FPX payment method. Here’s a list:
- iPay88
- Razer Merchant Services
If you offer bank transfer option manually, you can add a manual payment with payment instructions.
- Account Name
- Account Number
- Bank Name
In your instructions, provide instructions to buyers on where to send the receipt after payment.
#2: Credit Card (19%)
What it is: Customers pay using a credit card issued by a local or international bank. They will key in their card details into a secured form for processing.
How to enable Credit Card payment method in your store
You will need to use a payment gateway that can process credit card payments. Here are some you can consider:
#3: Digital Wallet/E-wallets (16%)
What it is: Customers pay using an e-wallet, typically by scanning a QR code.
How to enable E-wallet payment method in your store
There are two ways you can enable e-wallet payments in your store:
1) Individual e-wallets payment processor.
2) Using a payment gateway that offers e-wallet payments:
For case 1) you will need to enable each e-wallet one at a time, whereas it is possible to activate more than one e-wallet when you use a payment gateway.
#4: Debit card (12%)
What it is: Customers pay using a debit card issued by a local or international bank. They will key in their card details into a secured form for processing.
How to enable Debit Card payment method in your store
You will need to use a payment gateway that can process debit card payments. Consider using one of these:
#5: Cash on Delivery (COD) (9%)
How it works: Customers only pay upon receiving the products, usually to the courier company delivery the products.
How to enable Cash on Delivery (COD) payment method in your store
To enable Cash on Delivery (COD), you’ll need two things:
- Courier that offers Cash on Delivery (COD) like NinjaVan
- eCommerce platform that offers Cash on Delivery (COD) like Shopify or EasyStore
#6: Direct Debit (8%)
How it works: Customers authorise merchants to collect money from their bank accounts for a specified purpose.
How to enable Direct Debit payment method in your store
You need to use a payment provider that offers Direct Debit payment method. There are only a few, including PayNet and Curlec.
#7: Buy Now Pay Later (BNPL) (4%)
How it works: Customers pay in 3 or 4 interest-free, instalments, without a credit card.
How to enable Buy Now Pay Later (BNPL) payment method in your store
You can enable BNPL payments using a BNPL provider such as Atome or hoolah.
It’s possible to offer BNPL payments using a payment gateway, but for now, only a few payment gateways (like iPay88) offers BNPL.
#8: Prepaid Card (1%)
What it is: Customers pay using a prepaid card (like BigPay) issued by a local or international bank. They will key in their card details into a secured form for processing.
How to enable Prepaid Card payment method in your store
As Prepaid Cards are processed like any normal Credit/Debit Card, you can use a payment gateway that can process Credit/Debit Card payments. These include:
Want help with enabling payment methods in your online store?
I provide eCommerce consulting and setup for online stores in Malaysia. I can help you decide what payment methods to enable on your store and advise you on how to enable them on your chosen eCommerce platform. Book a call with me here.