SME Friendly Payment Gateway Options to Boost Your Business

Planning to utilise a payment gateway system to enhance your SME business but unsure which option fits your business model? Here is a list of payment gateway options available in Malaysia.

When e-commerce was in its infancy stage in Malaysia a decade ago, it is common for people to deduce online business transactions as something that is unnecessary, expensive, and risky which does not contribute to their overall revenue.

Perhaps you may have been exposed to payment gateways as a part of your mentoring process if you are a budding entrepreneur who has just received your first SME bank loan (or another unsecured loan) and you have been deterred from applying for it due to its presumably high operational costs.

As time passes by, although there is a rise in ICT adoption among owners of SME business, most SMEs are still reluctant to use online payment gateways. Which is quite surprising indeed especially when the e-commerce contribution to GDP was 5.9%, or RM68.3bil in 2015, before increasing to 6.1%, or RM74.6bil, in 2016.

Ready to digitise your business and stay ahead of your other business competitors? Here are some of the payment gateway options that you can take into consideration.

PayPal

Originating from US, PayPal has nearing 20 years of experience in handling online payment systems that support online money transfers and serves as an electronic alternative to traditional payment methods such as money order and cheque.

Setup Fee : None

Processing Fee : None

Transaction Fee : Malaysia - 3.9% + 2.00 MYR Overseas - 4.4% + 2.00 MYR Annual Fee : None

E-GHL

Founded in March 2013, eGHL offers secure Internet payment solution which encompasses both cards and non-cards payments channels across South East Asia to online businesses throughout the region.

Setup Fee : RM399 (e-GHL Starter Package) , RM599 (e-GHL Small Business Package)

Processing Fee : RM900 for credit card gateway, enforced by banks. Can be waived on a case-per-case basis, depending on nature of the business.

Transaction Fee : e-GHL Starter Package - 2.8% for Visa, MasterCard transaction

Direct Debit charge

  • FPX, Maybank2u, RHB Click and Affin Online 2.8% or RM0.70 (Whichever Higher)
  • CIMB Clicks 2.8% or RM0.95 (Whichever higher)

e-GHL Small Business Package - 2.5% for Visa, MasterCard transaction

Direct Debit charge

  • FPX, Maybank2u, RHB Click and Affin Online 2.5% or RM0.70 (Whichever Higher)
  • CIMB Clicks 2.5% or RM0.95 (Whichever higher)

Annual Fee :

  • e-GHL Starter Package - First year is free, subsequent year is RM399.
  • e-GHL Small Business Package - First year is free, subsequent year is RM599.

BillPlz

Created as a software for merchants to collect payments fast at the lowest cost possible, some of BillPlz clientele include Axiata, Telekom Malaysia (TM), Digi as well as Majlis Agama Islam Selangor (MAIS). The software focuses on providing 4 services to merchants, i.e. API, Billing, Payment Form and Mass Payments.

Setup Fee : None

Processing Fee : None

Transaction Fee : RM1.50 per transaction

FPX – Free, PayPal - 3.9% + RM22, 2C2P - 2.5%

Annual Fee : None

SenangPay

Fairly new to the market, SenangPay is a payment gateway that is targetted specifically at the Malay-speaking e-commerce business owners.

Setup Fee : None

Processing Fee : None

Transaction Fee : For credit/debit card, 2.5% per transaction. For internet banking, 1.5% per transaction.

Annual Fee : Starts from RM200 per year

MOLPay

Claiming to be leading payment gateway in Malaysia, MOLPay provide complete coverage of payment methods, including credit/debit card, domestic internet banking with more than 100 banks in Southeast Asia, and Online to Offline (O2O)

Setup Fee : RM499 (MOL Start-ups), RM400

Processing Fees : RM945 fee for credit card gateway, enforced by banks. Can be waived on case-per-case basis, depending on nature of business.

Transaction Fee :

MOL Startup - 3.8% per transaction or minimum RM 0.60 whichever is higher for online banking (e-debit) and MOLPay's 7-11 cash channel

MOLPay Premium - 2.8% per transaction for credit card, per transaction or minimum RM 0.60 whichever is higher for online banking (e-debit), for MEPS Cash and Webcash and MOLPay's 7-11 cash channel.

Ipay88

Known also as Malaysia's biggest payment gateway, ipay88 have assisted thousands of successful entrepreneurs in e-commerce and m-commerce space via our award-winning online payment ecosystem

Setup Fee : RM488 (Start-Up Plan), RM488 (SME Plan)

Processing Fees : RM900 fee for credit card gateway, enforced by banks. Can be waived on case-per-case basis, depending on nature of business.

Transaction Fee :

  • Start-Up Plan - 3.2% per transaction for credit card (Paypal) Domestic Only

Additional Charges for Multi-Currency

3.0% per transaction or minimum RM 0.60 whichever is higher for online banking (e-debit)

  • SME Plan - 2.7% per transaction for credit card, 3.2% per transaction for credit card (Paypal) Domestic Only

Additional Charges for Multi-Currency

2.7% per transaction or minimum RM 0.60 whichever is higher for online banking (e-debit)

While some of these payment gateway systems may come with multiple fees that add up to your expenses, it offers your customers a peace of mind as well as convenience when it comes to purchasing something from you online.

As such, should you aspire to grow your SME business further in Malaysia, obtaining an SME loan to furnish your inventory should not be the only end-goal for your entrepreneurial needs.

These loans, while it can help in covering for your expenses, it can also help further simplify and improve your business transactions while ensuring that your customer’s needs and shopping experience are taken care of with minimal fuss. All the best as you take your business to the next level!

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