Malaysia Payment Gateway Market is Expected to grow at a robust CAGR of 11.75% through 2030F
The increasing Malaysia payment gateway
market is driven by widespread adoption of QR code payments, rise of
omnichannel payment integration during the forecast period 2026-2030F.
According to TechSci Research report, “Malaysia Payment Gateway Market – By Region, Competition, Forecast and Opportunities, 2020-2030F”, The 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. QR code
payments are becoming the dominant mode of digital transactions in Malaysia,
revolutionizing how consumers and merchants interact. Driven by platforms like
DuitNow QR, GrabPay, Touch ’n Go, and Boost, the use of QR codes in physical
and online stores has surged. With QR code acceptance points surpassing 2.5
million nationwide, even micro-businesses such as street vendors and hawkers
are now equipped to accept cashless payments. Government-backed campaigns,
including e-wallet incentives and targeted subsidies, have helped embed QR
payments into daily life. The seamless integration of QR codes into local
payment gateways has also simplified merchant onboarding, reducing hardware
costs and enabling real-time settlement. Beyond convenience, QR-based transactions
also promote financial inclusion by reaching unbanked or underbanked
populations. Integration with ASEAN neighbors—such as Singapore, Indonesia, and
Thailand—further strengthens the use of QR codes for cross-border retail and
tourism-related payments. QR code interoperability enables Malaysian consumers
to travel and transact without needing foreign exchange or cash, enhancing
gateway service relevance. As QR becomes a baseline requirement for payment
gateway platforms, providers are investing in faster APIs, multi-wallet
compatibility, and smart reconciliation features. This trend is expected to
continue as more businesses prioritize cost-effective, scalable, and
mobile-first payment options that enhance customer convenience and operational
efficiency.
Malaysian businesses are increasingly
adopting omnichannel payment solutions that unify online, offline, and mobile
payment experiences. As e-commerce and in-store transactions converge, payment
gateway providers are developing integrated systems that support card, QR,
e-wallet, and direct bank transfers across multiple sales channels. Retailers
now seek seamless checkout options whether their customer is purchasing via a
mobile app, website, physical store, or social media platform. The demand for
centralized dashboards, real-time reporting, and automated reconciliation is
rising, especially among SMEs and mid-sized enterprises looking to streamline
operations. For example, a merchant using iPay88 or eGHL can now accept card
payments at physical stores, generate payment links for WhatsApp or Instagram,
and reconcile all transactions under one backend. Additionally, many payment
gateways are embedding buy-now-pay-later (BNPL), subscriptions, and loyalty
systems into omnichannel setups. This holistic approach boosts customer
retention, supports flexible payment preferences, and increases basket size.
Omnichannel integration also enables dynamic pricing, personalized promotions,
and advanced customer analytics—allowing businesses to craft targeted
campaigns. As a result, gateway providers are building modular and API-driven
platforms that can scale with evolving business models. This trend indicates a
shift from simple transactional processing to value-added services that empower
merchants across diverse touchpoints.
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Based on type, self-hosted is the
fastest growing segment in the Malaysia Payment Gateway market during the
forecast period driven by increasing demand from large enterprises, fintech platforms,
and digitally mature merchants seeking greater control, customization, and
security in their payment operations. Unlike hosted gateways, self-hosted
solutions allow businesses to host the payment environment on their own
servers, offering flexibility in design, integration, and user experience. One
of the primary drivers is the growing preference for customized checkout
experiences, especially among enterprises operating in competitive sectors such
as e-commerce, travel, and digital services. Self-hosted gateways enable
businesses to fully control the customer journey, which improves brand
consistency, reduces cart abandonment, and enhances user trust.
Moreover, data security and compliance are key
motivators. As concerns over data breaches rise, especially in sectors handling
sensitive financial and personal data, companies are turning to self-hosted
gateways to ensure compliance with Malaysia’s Personal Data Protection Act
(PDPA) and international standards like PCI-DSS. The ability to manage data
directly gives businesses greater assurance and control over fraud prevention
and customer information. In addition, the need for complex system integration
is accelerating self-hosted adoption. Businesses often require their payment
systems to integrate with ERP software, customer relationship management (CRM),
and inventory platforms. Self-hosted gateways offer high levels of API
configurability, making them suitable for large-scale, omnichannel operations.
Furthermore, Malaysia’s digital economy—bolstered by
government support, digital bank rollouts, and cross-border trade—is
encouraging enterprises to seek scalable and interoperable payment frameworks.
Self-hosted models allow for multi-currency processing, localized checkout, and
advanced reporting features, making them ideal for companies aiming for
regional expansion. As businesses prioritize data ownership, advanced
functionality, and seamless backend integration, self-hosted gateways are
becoming the preferred choice for high-growth and tech-forward enterprises,
fueling their rapid growth in the Malaysian market.
Based on region, East Malaysia is the
fastest growing region in the Malaysia Payment Gateway Market during the
forecast period driven by rapid digital infrastructure development, rising e-commerce
penetration, and targeted government initiatives to enhance financial
inclusion. Comprising the states of Sabah and Sarawak, East Malaysia has
historically lagged behind Peninsular Malaysia in terms of digital connectivity
and payment technology. However, this gap is narrowing due to strategic
investments in internet accessibility and mobile network expansion. One of the
key growth enablers is the ongoing rollout of 4G and 5G networks under national
initiatives like JENDELA, aimed at improving connectivity in underserved
regions. As a result, more rural and semi-urban businesses in East Malaysia are
gaining access to the internet, enabling them to adopt digital tools such as
hosted and mobile-based payment gateways. Smartphone penetration is also on the
rise, with a growing number of consumers now preferring e-wallets and QR
code-based payments, particularly among younger, mobile-first populations.
Government and private sector collaborations are also
catalyzing growth. Digital grants and financial incentives for micro and small
enterprises are encouraging merchants in East Malaysia to onboard digital
payment platforms. Payment gateway providers are increasingly targeting this
region with localized solutions, such as multilingual interfaces, low-cost
onboarding, and offline-to-online support models that cater to businesses with
limited technical expertise. Moreover, the growth of domestic tourism and
expansion of regional e-commerce platforms are increasing transaction volumes
in East Malaysia. Platforms like Grab, Shopee, and Lazada are rapidly
onboarding local sellers, many of whom require reliable and flexible payment
gateway solutions to process transactions securely. As infrastructure,
awareness, and digital readiness improve across East Malaysia, the demand for
integrated, scalable, and mobile-friendly payment gateways is
accelerating—making the region a focal point for growth in Malaysia’s digital
payment landscape.
Key market players in the Malaysia
Payment Gateway market are: -
- iPay88
- eGHL
- Razer Merchant Services
- SenangPay
- Billplz
- M2uPay
- Curlec
- KiplePay
- Stripe
- PayPal
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“The Malaysia Payment Gateway Market presents
significant opportunities driven by rising digital adoption, e-wallet
penetration, and government-backed digitalization initiatives. Increasing SME
onboarding, growth of cross-border e-commerce, and expansion into
underpenetrated regions like East Malaysia create strong potential. Demand for
value-added services—such as subscription billing, fraud analytics, and
real-time settlements—is rising. Additionally, strategic partnerships with
fintech firms and international payment networks can enhance gateway
capabilities. As consumer preference shifts toward contactless and mobile-first
transactions, providers offering secure, customizable, and API-driven platforms
are well-positioned to capture growing market share across diverse sectors
including retail, logistics, tourism, and financial services.Top
of Form” said
Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global
management consulting firm.
“Malaysia
Payment Gateway Market By Type (Hosted, Bank Integrated, and Self-hosted), By
Enterprise Size (Large Enterprises, Small & Medium Enterprises), By Payment
Method (Credit Card, Debit Card, E-Wallet, and Others), By Vertical (Retail,
Travel & Hospitality, Healthcare, Education, Government, Utilities, and
Others), By Region, Competition, Forecast and Opportunities, 2020-2030F,” has evaluated the future
growth potential of Malaysia Payment Gateway Market and provides
statistics & information on market size, structure, and future market
growth. The report intends to provide cutting-edge market intelligence and help
decision makers take sound investment decisions. Besides the report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Malaysia Payment Gateway Market.
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