|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
|
USD 173.21 Million
|
|
CAGR (2023-2028)
|
11.11%
|
|
Fastest Growing
Segment
|
Healthcare
|
|
Largest Market
|
Hosted
|
Malaysia payment gateway market is growing due to the
increase in e-commerce transactions which has spurred the need to secure and
protect customer data efficiently along with the increasing demand for secure
and convenient payment solutions from businesses and consumers. 5G
infrastructure investments for faster internet connectivity have proliferated
and the adoption of several advanced technologies such as cloud and digital
transformation have further boosted the demand for payment gateways. Enterprises
are highly dependent on digital transactions due to the increasing number of
internet users and digital services that drive their business operations. Additionally,
the growing demand for data and
high bandwidth capacity, especially due to the increasing smartphone users promotes
the development of the payment gateway market of Malaysia throughout the
forecast period.
Rapid Adoption of Cloud and Digital
Transformation by Enterprise
Malaysia’s digital journey across the
globe is growing at a remarkable pace since the adoption of digitalization in
the country. Due to the rapid pace of technological advancements, Malaysia is harnessing
digital technologies to reap significant economic benefits in the long run. Several
cloud service providers from across the world have revealed their availability
zones and the data scrubbing center in Malaysia, particularly in locations like
Johor, Cyberjaya, Kuala Lumpur, and multiple regions since they have strong
fiber connection, lower land, and submarine. Availability zones (AZs) are being
built by BDx Malaysia, Amazon Web Services (AWS), and
Huawei Cloud to support high availability (HA), while maintaining low latency. Large
enterprises such as Google, Alibaba Group, Amazon Web Services (AWS), and
Microsoft Corporation has announced their plans to setup cloud region in Malaysia
which has attracted many new payments gateway solution providers such as Razorpay
and Xendit to maiden offline and online solutions in Malaysian market. While most
of the large enterprises already accelerated cloud adoption, medium-sized
companies and small companies have also embarked on their cloud journey. Not
only the private sector, but the government is also aiming to accelerate cloud
adoption in the region.
Moreover, to keep ahead of the curve,
government organizations have provided several grants and incentives to assist
guide the rise of digitalization. For instance, according to SME Corporation
Malaysia, few initiatives offered by various entities, such as the SME
Digitalization Grant offered by the Malaysia Digital Economy Corporation
(MDEC), offering SME’s RM5,000 (USD 1082.86) each to acquire or subscribe to
digital systems. Recently Bank Negara Malaysia (BNM) has also offered an
additional allocation of RM700 million (USD 151.60 million) for the SME
Automation and Digitalization Facility (ADF), bringing the facility’s total
size to RM1 billion (USD 0.22 billion). This seeks to motivate SMEs from
various industries to automate procedures and digitalize business operations to
boost output and efficiency. Moreover, the ADF is available to all SMEs in
Malaysia, with a maximum funding sum of RM3 million (USD 0.22 million) and a
maximum financing term of 10 years have all enjoyed full support of the Malaysian
government. With the adoption of cloud technologies and digital technologies, all
these industries produce massive volumes of data, the majority of which requires
some sort of cloud-based payment gateway to integrate with other cloud-based
application to manage their payments and customer data and protect businesses
from fraudulent transactions. Furthermore, many enterprises are facilitating
remote working, which is also driving the demand for cloud computing as cloud-managed
services are a vital part of digital transformation, their demand will further
expand in the recent years. Therefore, the rapid adoption of cloud and digital
transformation by enterprise are attributing the growth of Malaysia payment gateway
market.
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The Increasing Number of Internet Users
and Digital Services is Proliferating Growth
The increase in the number of internet users
and digital services has happened worldwide, and Malaysia is no exception to
that. In addition, the significant advancement of online technologies has
driven many companies to offer their products through the internet. With the increasing
mobile penetration rate of over 80% with average population age of 28.7, Malaysia
is heavily reliant on digital platforms, such as E-wallets though various smart
devices like smartphones that are replacing the traditional wallets payment
systems. This has brought large-scale processing and digital application
development to the industries which require payment gateways for bigger and
secure financial transactions.
For instance, the Malaysian digital 2023
global overview report states that out of the 32.6 million people living in
Malaysia, 29.55 million used the internet in January 2022, representing an
internet penetration rate of 89.6 percent as of the first quarter of 2022.
Additionally, the nation's additional 1.2 million new digital consumers between
the finish of 2021 and the last quarter of 2022. 79% of respondents utilize the
internet for online transactions, while 72% accessed financial services. The
country's digital transformation and smart phone adoption are being accelerated
by an increase in internet users and digital applications for a variety of
services. In addition, according to data from GSMA Intelligence, Malaysia had
42.11 million mobile connections in the beginning of 2022, and this figure
increased by 1.6 million (4%) between 2021 and 2022. As the increasing internet
users and digital services creates huge customer data during online
transactions, the demand for enabling payment gateway to protect customer data
will rise. Thus, the increasing number of internet users and digital services
has proliferated the demand for payment gateway in the Malaysia Market.
Increase In E-Commerce Transactions in Malaysia
E-commerce market in Malaysia is swiftly growing to
be one of the biggest in Southeast Asia due to its dynamic economy and
developed infrastructure for digital technologies. This has emphasized the individuals
and enterprises for online transactions. Payment gateways are an essential part
of any online business, as they allow businesses to accept payments from
customers securely and conveniently. The increase in number of middle-class
incomes who are tech-savvy are rapidly adopting the online shopping platform to
access the international brands and access greater discounts. According to
the department of Statistics Malaysia (DOSM), the e-commerce income in 2023
amounted the growth of 10.4% as compared to MYR 1.1 trillion (USD 240 billion)
in the previous year. Meanwhile, the income generated from e-commerce in
Malaysia experienced a remarkable 23.9% surge in 2021 compared to 2019,
reaching MYR 1.04 trillion (USD 220 billion). In 2021, the local market segment
in e-commerce, which includes sales conducted within Malaysia, recorded a
substantial increase of 25.5%, amounting to MYR 932.7 billion (USD 200.15
billion). In contrast, the international market segment increased by 11.9%,
reaching MYR 104.5 billion (USD 22.42 billion). Furthermore, the business to consumer
(B2C) transactions experienced lucrative growth with 26.2% accounting MYR 308.9
billion (USD 66.29 billion) while Business to business (B2B) transactions
increased 25.9% to MYR 713.1 billion (USD 153.03 billion).
The growth in
the transactions is attributing to the increasing investments in the e-commerce
startups, enhancing communications, broadband facilities, and establishment of
regional e-commerce gateways by the Malaysian government. Moreover, Malaysian government’s
initiatives such as digital free trade zones, national ecommerce strategic
roadmap are supporting and empowering local micro, small, and medium
enterprises (MSMEs) through cross-border e-commerce. Such surge in transactions
is enabling the enterprise to adopt payment gateway services as these services
are improving the security, convenience, and flexibility during the checkout
process that are leading to increase sales and growth in businesses. As the
upward trends in the transactions continue to progress, the demand for payment
gateway in the e-commerce industry is also expected to grow. Hence, the increase
in e-commerce transactions is offering robust opportunities in the Malaysia payment
gateway market.
Recent Developments
- On July 13, 2023, Razorpay, a payment and business
banking platform has announced the launch of its first global payment gateway
through Curlec in the “Malaysia”, specifically one of the fastest digital
economies in South-East Asia (SEA). More than 5,000 businesses will be served
by the new curlec platform gateway, which aims to achieve USD 2.16 billion in
annualized gross transaction value (GTV) by 2025. The company in the past has
announced its first international expansion by acquiring Curlec with a majority
stake.
- On January 12, 2023, Xendit, an Indonesian founded
fintech company announced the expansion of payment infrastructure and ecosystem
in Malaysia. In addition, the company has also announced the investment in
Payex, a Bank Negara Malaysia licensed payment gateway provider with an
undisclosed amount. The investment and collaboration will further allow
business to tap into Southeast Asian markets such as Thailand, Vietnam,
Philippines, Indonesia and many more.
- On November 01, 2022, Revenue Group Bhd, an E-payment
solutions provider announced the appointment as the front-end and back-end
payment processing partner with Taobao. The partnership will further enable the
instalment of Payment Plan (IPP) that Taobao Malaysia has just launched for its
applications.
- On July 14, 2022, DOKU, an electronic payment
solutions provider announced the acquisition of SenangPay, an online payment
gateway firm in Malaysia after receiving the USD 7.5 million funding from Apis
Partners LLP. The new acquisition will mark the expansion of SenangPay services
beyond online payment gateway while adopting new services such as remittance, e-wallet, and offline transaction
such as M2M (mobile to mobile) and Tap On Glass.
- On March 14, 2022, HitPay, a one-stop commerce
platform announced the launch of payment gateway with one stop payment solution
in Malaysia for SME’s. The solution will help sales channel from custom-built
websites, social media, and every major e-commerce platform and enable customer
to easily accept customer payments with the company’s wide range of offline and
online payment solutions.
Market Segmentation
Malaysia payment gateway market is divided into type, enterprise size, vertical, and region. Based on type, the market
is segmented into hosted, bank integrated, and self-hosted. Based on enterprise
size, the market is segmented into large enterprise, and small & medium
enterprise (SME). Based on payment method, the market is bifurcated into credit
card, debit card, e-wallet, and others. Based on vertical, the market is
further divided into retail, travel & hospitality, healthcare, education,
government, utilities, and others. Based on region, the market
is divided into East Malaysia & West Malaysia.
Company Profiles
Ipay88 (m) Sdn Bhd,
Razer Merchant Services Sdn Bhd, PayPal Pte Ltd., GHL ePayments Sdn Bhd (eGHL),
BILLPLZ SDN. BHD., Stripe Payments Malaysia Sdn. Bhd., Malayan Banking Berhad, and
Simplepay Gateway Sdn. Bhd are some of the major players that are driving the growth
of the Malaysia payment gateway market.
|
Attribute
|
Details
|
|
Base
Year
|
2022
|
|
Historical
Years
|
2018 –
2021
|
|
Estimated
Year
|
2023
|
|
Forecast
Period
|
2024 – 2028
|
|
Quantitative
Units
|
Revenue
in USD Million, Volume in Tones, and CAGR for 2018-2022 and 2023E-2028F
|
|
Report
Coverage
|
Revenue
forecast, company share, growth factors, and trends
|
|
Segments
Covered
|
Type
Enterprise
Size
Payment
Method
Vertical
Region
|
|
Country
Scope
|
Malaysia
|
|
Regional
Scope
|
East
Malaysia & West Malaysia
|
|
Key
Companies Profiled
|
Ipay88
(m) Sdn Bhd, Razer Merchant Services Sdn Bhd, PayPal Pte Ltd., GHL ePayments
Sdn Bhd (eGHL), BILLPLZ SDN. BHD., Stripe Payments Malaysia Sdn. Bhd.,
Malayan Banking Berhad, Simplepay Gateway Sdn. Bhd.
|
|
Customization
Scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing
and Purchase Options
|
Avail of customized
purchase options to meet your exact research needs. Explore purchase options
|
|
Delivery
Format
|
PDF and Excel through
Email (We can also provide the editable version of the report in PPT/pdf
format on special request)
|
Report Scope:In this
report, the Malaysia payment gateway market has been segmented into the following
categories, in addition to the industry trends which have also been detailed below:
- Malaysia
Payment Gateway Market, By Type:
- Hosted
- Bank Integrated
- Self-hosted
- Malaysia
Payment Gateway Market, By Enterprise Size:
- Large Enterprise
- Small & Medium Enterprise (SME)
- Malaysia
Payment Gateway Market, By Payment Method:
- Credit Card
- Debit Card
- E-Wallet
- Others
- Malaysia
Payment Gateway Market, By Vertical:
- Retail
- Travel &
Hospitality
- Healthcare
- Education
- Government
- Utilities
- Others
- Malaysia
Payment Gateway Market, By Region:
- East Malaysia
- West Malaysia
Competitive Landscape
Company Profiles: Detailed analysis of the major
companies present in the Malaysia payment gateway market.
Available Customizations:
With
the given market data, TechSci Research offers customizations according to a
company’s specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
The Malaysia payment gateway market is an upcoming report to
be released soon. If you wish an early delivery of this report or want to
confirm the date of release, please contact us at [email protected]