Shopify payment gateway in Malaysia with local payment methods

Key takeaways:

• Shopify Payments is not available in Malaysia, so merchants must use third-party payment gateways like Billplz, PayPal, or iPay88.
• Local payment methods matter. Malaysian consumers prefer FPX, DuitNow, e-wallets, and BNPL over international options like PayPal or credit cards.
• Billplz is a top local payment gateway, offering seamless Shopify integration, support for FPX (RM0.70 flat fee), e-wallets, and BNPL.
• Using a local gateway improves conversion rates, lowers fees, and increases customer trust, thanks to familiar payment methods and faster settlements.
• Setting up a gateway on Shopify is simple, and Billplz offers tools for real-time reconciliation, secure transactions, and trusted infrastructure.

Introduction

Shopify is one of the most widely used eCommerce platforms for businesses in Malaysia, offering a powerful and user-friendly way to build an online store. However, unlike in some other countries, Shopify’s native payment processor, Shopify Payments, is not available in Malaysia.

To accept payments on Shopify, Malaysian merchants must integrate their stores with a third-party payment gateway such as PayPal, Stripe, Billplz, or iPay88. These gateways are essential bridges that process transactions securely.

This article explores how Malaysian Shopify stores can set up third-party gateways, why local payment methods matter, and why Billplz is one of the most trusted and cost-effective options available.

Why you need a third-party payment gateway in Malaysia

Because Shopify Payments is not available locally, a third-party payment gateway is a non-negotiable requirement for any Malaysian Shopify store that wants to process transactions.

These gateways are the engine that allows you to accept a wide variety of payment methods that Malaysian consumers know and trust, including credit/debit cards, popular e-wallets, and direct online bank transfers via FPX.

Without offering these familiar, local payment options, you risk a high rate of cart abandonment. Customers who don't see their preferred payment method are likely to leave your site and purchase from a competitor who does.

Integrating a reliable gateway ensures a smooth checkout experience, building customer confidence and boosting your sales.

Popular payment gateway options for Shopify Malaysia

Shopify merchants in Malaysia can choose from a range of international and local payment gateways.

•  International gateways: These include globally recognized names like PayPal, Stripe, Adyen, and WorldPay. They are excellent for businesses with a large international customer base, but can have higher fees and slower settlement times for Malaysian transactions.
• Local gateways: These providers are specifically tailored for the Malaysian market. Key players include Billplz, ADAPTIS (formerly iPay88), GrabPay, and more. They excel in offering local payment methods like FPX and DuitNow QR, often with lower fees and faster payout schedules.

While international gateways offer global reach, local gateways are often better suited to Malaysian shoppers. They provide faster settlements, lower fees, and support for payment methods Malaysians trust, like FPX and DuitNow.

It's important to note that all transaction fees are charged by the payment gateway provider, not by Shopify.

Key considerations when choosing a gateway

When selecting a payment gateway for your Shopify store in Malaysia, consider:

• Payment methods: Ensure the gateway supports the methods your customers prefer. Choose a gateway that supports cards (Visa/Mastercard), FPX bank transfers, top e-wallets (GrabPay, Touch ‘n Go, Boost), and BNPL services.
• Fees: Transaction fees can be either a flat rate per transaction (e.g., RM0.70) or a percentage of the total sale amount (e.g., 2.5% + RM0.50). Carefully evaluate the fee structure to understand how it will impact your profit margins.
• Integration: All official Shopify-approved providers offer seamless integration. The setup is typically straightforward and can be completed within your Shopify admin dashboard under Settings > Payments.
• Settlement speed: How quickly will you receive your money? Local gateways that process FPX and DuitNow payments often settle funds by the next business day. International gateways may take 3-7 business days or longer.
• Customer trust: Malaysians are comfortable and familiar with local payment systems. Displaying these options at checkout can significantly increase customer trust and conversion rates compared to offering only international card options.

Local payment methods Malaysian shoppers prefer

Malaysian consumers favour instant, secure, and familiar payment methods. These include:

• FPX payments: The Financial Process Exchange (FPX) is a secure online payment system operated by PayNet, Malaysia's national payments network. It allows customers to make payments by logging into their bank account, offering instant transfers with very low fees for merchants.
• DuitNow & DuitNow QR: DuitNow enables instant, real-time fund transfers between bank accounts and e-wallets using just a mobile number or national ID. DuitNow QR provides a universal QR code that customers can scan with their preferred mobile banking or e-wallet app to make a payment.
• E-wallets: Digital wallets are extremely popular. The most widely used in Malaysia include GrabPay, Touch ‘n Go eWallet, Boost, and ShopeePay.
• BNPL providers: Buy Now, Pay Later services like Atome and Grab PayLater are gaining traction, allowing customers to split their purchases into interest-free installments.
• Debit & credit cards: Visa and Mastercard remain a staple payment method. MyDebit is the national debit card scheme that allows for direct bank account deductions.

Benefits of using local payment gateways on Shopify

Choosing a local payment gateway can give your Shopify store a strategic edge in the Malaysian market:

• Higher customer trust: Presenting familiar payment options builds immediate credibility and increases adoption.
• Lower transaction fees: Local gateways often have more competitive pricing, especially for FPX transactions, compared to the percentage-based fees of international providers.
• Faster settlements: Quicker access to your funds significantly improves business cash flow.
• Support for local ecosystems: These gateways are deeply integrated with Malaysian banks and e-wallet providers.
• Regulatory compliance: Local gateways operate under the oversight of Bank Negara Malaysia (BNM) and adhere to the standards set by PayNet, ensuring security and compliance.

Also read: FPX payment for business: How it works, guides & our solutions

Shopify payment gateway: Local vs international options

Here’s a quick side-by-side comparison of local and international gateways:

Feature	Local Gateways	International Gateways
Payment Methods	FPX, DuitNow, local e-wallets, BNPL, cards	Primarily credit/debit cards, PayPal balance
Fees	Lower (often flat or local percentage rates)	Higher (often USD-based with currency conversion charges)
Settlement	Fast, often next business day (for FPX, DuitNow)	Slower, typically 3–7 days, potential for FX delays
Customer Trust	High, due to familiarity with local methods	Moderate, as not all Malaysians use PayPal or Stripe

Why use Billplz as a Shopify payment gateway in Malaysia?

Billplz is designed specifically for the Malaysian market, offering merchants a seamless, locally optimized solution for accepting online payments. It is trusted by businesses across industries for its cost-effectiveness, reliability, and support for all major Malaysian payment methods.

Here are the top 3 reasons Billplz is ideal for your Shopify store:

• Specialises in Malaysian payment methods: Billplz supports FPX, DuitNow QR, e-wallets, and card payments — giving customers the flexibility to pay the way they prefer.
• Unbeatable FPX fee: Billplz offers a flat RM0.70 per successful FPX transaction, making it one of the most affordable gateways in Malaysia.
• Easy Shopify integration: Setup is quick and straightforward — just enter your credentials, and you're ready to go in minutes.

Beyond the top advantages, Billplz also supports BNPL and major Malaysian e-wallets, giving customers more ways to pay and reducing the chances of abandoned checkouts.

Its real-time dashboard simplifies payment tracking and reconciliation, while transparent pricing and 99.999% uptime ensure your store runs smoothly at all times.

In short, Billplz isn’t just a payment gateway. It’s a complete payment solution tailored for Malaysian businesses on Shopify.

Also read: BNPL Malaysia & Billplz: Our integrations, comparisons & offerings

Conclusion

If you're running a Shopify store in Malaysia, integrating a third-party payment gateway is essential. While international gateways have their place, local providers offer lower fees, faster payouts, and greater customer trust.

To win more customers and reduce checkout abandonment, offering local payment methods like FPX, DuitNow, and BNPL is no longer optional — it’s expected.

With its simple integration, low fees, and trusted local infrastructure, Billplz is the smart solution for Shopify merchants who want to accept payments the Malaysian way.

Enable Billplz on your Shopify store today to start accepting payments the Malaysian way. New merchants receive MYR 25.00 in starter credit with code GROWTHPRO (valid until 31 December 2025).