Q & A
Q & A
Online Payments in
Malaysia has a population of roughly 30 million, making it the 5th most-populous country in Southeast Asia. According to a study by Google in 2014, roughly
Malaysians purchase products online on a monthly basis. With mobile penetration exceeding 100%, improved broadband offerings, and an exponential growth in demand for smartphones, Malaysia is an increasingly attractive market for gaming and online shopping.
35% of online transactions
are completed using credit cards in Malaysia. This small figure – albeit sizeable relative to other Southeast Asian countries – is due in part to low credit card penetration: just
20% of adult Malaysians
reported having a credit card in 2014, up from 12% in 2011. The Malaysian credit card landscape is similar to Indonesia in that customers who are eligible for credit cards typically have several under their name. Bank Negara Malaysia, the central bank,
banks from issuing credit cards to customers with an annual income of less than RM24,000 and caps the amount of credit that may be extended to customers whose annual income is less than RM36,000.
50% of online transactions
in Malaysia are be paid for using Internet banking, making this one of the most popular and important payment channel in the country. The largest banks in Malaysia are Maybank, RHB, Hong Leong, and CIMB. Most banks in Malaysia are connected to a platform called FPX, which is operated by the
Malaysian Clearing Corporation Sdn Bhd
and enables bank transfers to merchants.
Cash Payments at Retail
60% of Malaysians prefer to use cash as a method of payment, due at least in part to the fact that 55% of adults are either hesitant or would not shop online due to cyber-safety concerns. This makes cash payments at retail a critical channel for online payments in Malaysia.
The largest network of retail stores at which customers can make cash payments over–the–counter in Malaysia is operated by
which has installed physical payment terminals in over 13,000 locations. These terminals were originally installed and used for the sale of prepaid mobile credit vouchers to customers – but they are a powerful tool that can now be used to facilitate the completion of payments initiated online.
Merchants that use Codapay can receive payments via e-pay.
to learn more.
Direct Carrier Billing (i.e. SMS billing, Telco payments, pay with load)
The monetization potential of direct carrier billing is sizeable given that
9 out of 10 Malaysians
use their phones for video, music and games. Thanks in part to the popularity of social platforms like Facebook and LINE, many Malaysians play games on their phone.
There are now 43 million mobile connections in Malaysia, which puts
penetration at 144%
. The three key mobile telcos in the country are Maxis (with 13 million customers), Celcom (with 13 million customers), and DiGi (with 11 million customers). Approximately 78% of mobile connections are prepaid, and 22% are postpaid. Smartphone penetration is 35% as of early 2014, but is
predicted to rise to 60% by 2015
Direct carrier billing is Coda's flagship payment service.
to learn more.
Game Vouchers are a popular payment method in Malaysia, and the most popular voucher is distributed by MOL (Money Online). MOL is owned by Berjaya Group, which also owns the 7–Eleven convenience store franchise in Malaysia, so can distribute its voucher via any 7–Eleven convenience store in the country. Their distribution footprint is approximately 15,000 physical and virtual payment channels across Malaysia. Other game vouchers in Malaysia include MyCard and Cherry Credits.
In addition to distributing MOL vouchers, MOL also operates an e–wallet. MOL is connected to a number of payment channels in Malaysia and customers can use those payment channels to purchase MOLPoints, which they must store in an MOL–issued e–wallet (for which they must first register and login to use). MOLPoints can in turn be redeemed for content at game publisher's sites. MOL typically charges merchants 20–25% of every payment for transaction processing.
—banks, telcos, and others—have been licensed by Bank Negara Malaysia to offer e–wallets to customers. Examples include Celcom's
. These can be used for the purchase of physical goods; but have yet to be widely adopted by Malaysian consumers.
If you need help navigating Malaysia's landscape of payment channels, or are interested in learning more about how Coda can help you monetize in this market,
get in touch!
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