All You Need to Know: Digital Payment Methods in Malaysia

In today’s fast-paced world of all things e-commerce, it’s crucial for businesses to offer a variety of digital payment methods to stay ahead of the game. Why? Due to ever-evolving technology, fierce competition in the market, and meeting your customer’s expectations. After all, who wants to deal with complicated payment processes? 

It’s about making it easy for your customers to complete their transactions and come back for more. So if you’re in the e-commerce game, read on to find out about the variety of digital payment methods out there that’ll keep your customers happy and your online sales soaring.

So, what is digital payment? 

In Malaysia, online payments have come a long way. Now, it’s about using electronic means to transfer money for goods or services through online platforms or digital devices. Gone are the days of carrying cash, coins, or your chequebook!

This tech-powered process uses payment processing networks or payment gateways to securely and efficiently handle transactions. The best part? These payment methods have made it easier for businesses to receive payments and for customers to transact online. 

Types of digital payment methods

Let’s take a closer look at the digital payment methods available and how you can leverage them for your business:

Bank transfer

Bank transfer, also known as FPX (Financial Process Exchange), is the most popular online payment method. In 2022, FPX transacted a total of RM251.4 billion. Why is it so widely used? Because there’s no need for credit cards or e-wallet. To use FPX, simply select it as a payment option, choose your bank, and authorise the payment through the bank’s online portal. For example, you can settle your internet bills without the hassle of entering your credit card details or dealing with multiple e-wallets. As such, it is both secure and convenient.

Credit card

Credit cards have always been a popular form of online payment, trusted by businesses and customers alike. Think about it: you’re ready to check out with your credit card in hand. With secured card processing networks like Visa, Mastercard, and more, you can easily pay with just a few clicks. But how does it work? By using the customer’s credit line, obtaining authorisation from the credit card issuer, and transferring funds from the customer’s account to the merchant’s for settlement. Although credit card usage has declined due to the Covid-19 pandemic, it is likely to increase throughout the next few years.

Debit card

Debit cards are similar to credit cards where they are both small plastic cards. The key distinction lies in the way the funds are handled. When using a debit card, the amount is directly deducted from the linked bank account, which should have a sufficient balance in the first place. Thus, it is important to have a bank account before obtaining a debit card. There are, however, prepaid debit cards – cards that allow you to top-up without being linked to your bank account such as BigPay. 


E-wallets are like your digital pockets, where you can safely stash your debit cards, credit cards, and other payment methods. All you need is a digital device to seamlessly make payments. Say goodbye to entering lengthy payment information for every transaction you make. Really, it’s no wonder up to 62% of Malaysians favour e-wallets, becoming a hit in the country. Some examples of widely used e-wallets are Touch ‘n Go, GrabPay, MAE (Maybank Anytime, Everywhere), and Boost.


DuitNow offers one of the most convenient payment experiences for online transactions. Using just your mobile number or National Registration Identity Card (NRIC), you can send and receive money instantly. Similar to e-wallets, it eliminates the need for information such as bank account details. This form of payment has become extremely popular among Malaysians, where over half the population prefers this real-time payment method. Imagine splitting bills with your friends for that mamak session with a few taps on your phone – it’s that simple. 

Direct debit

Direct debit is a hassle-free way to make online payments without the need for credit cards or e-wallets. It is widely accepted by online merchants and is secure, processed through trusted payment gateways. Furthermore, you can easily manage and monitor your payments through your online banking portal or application. Once authorised, direct debit allows merchants to automatically deduct funds from a customer’s account, ideal for recurring payments. Bid farewell to manual transfers and enjoy the peace of mind when dealing with subscriptions and more.

Now, how do you boost your business with Curlec? 

Overall, we now know the trend that payment methods play an extremely important role in the success of an e-commerce business. Limited payment methods can deter potential customers and lead to cart abandonment – an issue that is on the rise.

However, with Curlec, you can provide your business with multiple digital payment options. This will provide customers the flexibility to choose their preferred payment method, reduce barriers to purchase, and increase the likelihood of completing the transaction. Ultimately boosting your online sales and growing your business in the Malaysian e-commerce landscape.

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