Retail Payment Systems in Malaysia

Retail payments systems are method used to make small payments by individuals and businesses. The most popular method is via cash. These are the payment systems, other than cash, that ca be use in daily life.

Retail payments in Malaysia can be divided into three categories

1. Types of retail payment systems

2. Types of retail payment instrument

3. Types of retail payment channels

  • Internet banking
  • Mobile banking
  • Mobile payment

FPX Payment (Financial Process Exchange)

FPX Payment (Financial Process Exchange) is a secure online payment gateway system that allows consumers to make real time online payments by using their existing current or savings account. FPX provides consumers with the convenience to purchase at their retail websites and online stores. Consumers are not required to register to make FPX Payment.

The great thing about FPX is it allow to make payment between different participating financial institutions or banks. Currently, the participating banks are Maybank, CIMB Bank, RHB Bank, Public Bank, Hong Leong Bank and Bank Islam.

The only drawback of FPX Payment is, consumer needs to have an Internet banking account with any of the six (6) participating banks mention above. Since FPX is for online payment, there should not a bigger issue as most of the consumers who shopping online, have an online banking account.

To use FPX payment, kindly follow these simple steps,

  1. Ensure pop-up blocker of your browser is disabled.
  2. At the merchant website. Select FPX as a payment option.
  3. Select your preferred bank and you will be directed to the Internet banking log-in page.
  4. Proceed to log-in and complete the payment.
  5. Once the transaction is successful, a separate notifications will be sent from the merchant, bank and FPX System.

FPX service operating hour is from 1:00am to 12:00am daily, seven days a week, 365 days a year. However, FPX service is also dependent on the participating banks’ Internet banking service availability.

The maximum transaction limit for an individual banking account is RM 30,000.00 per transaction and RM 1,000,000.00 per transaction for a corporate banking account. However, the above limit is subject to your Internet banking transaction limit, whichever is lower.

FPX Payment System is managed by MyClear (Malaysian Electronic Clearing Corporation Sdn Bhd), a wholly-owned subsidiary of Bank Negara, the Central Bank of Malaysia. MyClear provides technical expertise as well as providing interbank switching and routing infrastructure for the banks. They will also manage the clearing and settlement on behalf of the banks for the FPX service.