Introduction

One of the most diversified and dynamic economies in Southeast Asia, Malaysia is a model for successful transformation towards modernization of all sectors in the economy. Emerging firstly as a rubber exporter in the olden times, Malaysia cultivated towards an upper middle income nation with a strong trade and manufacturing foundation aided with workforce driving services and digital technologies. The country’s GDP ranges over $400 billion, placing it in an upper middle income economy and making a stand in the top 40 global economies of the world. The economy has an export oriented industrialization connecting it with the entire world and it is also a member of key regional trade councils across the world. All these factors put Malaysia in a position of evolving and experimenting with technology and finance. Malaysia, as a result, has moved towards a digital economy fairly speedily adopting modern payment systems and instant finance. Lets see how the economy of Malaysia is evolving towards crypto finance, how Malaysian payment rails work, how the country is adapting to the digital environment of finance and what are its best breakthroughs!   

A peak into Malaysia’s payment rails and fintech infrastructure 

At the core of it, Malaysia’s payment structure is built as the Payments Network Malaysia (PayNet) which is jointly owned by major Malaysian banks and local financial entities including FPX. Interbank GIRO, JomPay etc. These rails together make up the backbone of the economy and its digital payment ecosystem. These rails facilitate seamless movement of money and a congregation between wallets, merchants and consumers also enabling a space for innovations on the lines of new entrants for fintechs and digital payment systems. The conclusive aim is to bring cross border real time payments closer to reality and accessible for all irrespective of purpose and industry.

Realtime transfers and QR payments with DuitNow Malaysia

DuitNow is a Malaysian real-time payments network managed by Malaysia's central payment authority PayNet. Payment providers are unified under one national regulatory standard and run on the same network, making payments between them interoperable. Users are able to digitally transfer money between online banks and digital wallets with a mobile number, National identification number, or business registration number by using DuitNow. 

DuitNow offers numerous advantages and features, making it a highly efficient payment system in Malaysia. It facilitates instant, real-time fund transfers that are both secure and reliable, supporting both individual and business transactions. DuitNow is available 24/7, ensuring accessibility at any time. The system is integrated with mobile banking and e-wallet services, enhancing convenience for users. It also supports QR code payments, simplifying transactions further. Additionally, DuitNow helps reduce transaction costs, making financial services more affordable.

Secure online banking with FPX payments in Malaysia

FPX (Financial process exchange) is a reliable internet based payment gateway that allows real-time payments for online purchases hassle free or bill payments using your Savings / Current account or even Credit Card (available for selected merchants only). FPX is operated by Payments Network Malaysia PayNet, a wholly-owned subsidiary of Bank Negara Malaysia.

When making a FPX Online banking Malaysia payment, the shopper is redirected to their bank's website browser to complete the payment. Getting a final result of such a payment is asynchronous, so you will need to rely on webhooks to know whether the payment was successful. FPX is popular for ecommerce, bill payments, donations and SMEs as well as it provides low transaction cost and is broadly locally trusted. 

Empowering global payments and integrations with TransFi

With all the evolving digital payment systems and innovation in the digital landscape, stablecoins and crypto payments methods have also entered with full power and benefits. These also make up for a smarter cross border solution over the local payment rails. Stablecoins have taken the Malaysian economy to the next level as they make the best financial solutions accessible to the economy. Platforms like Transfi are making these stablecoin and digital asset benefits to people of Malaysia making their activities towards trade, export and other international financial system flows easier. To get to the crux for easy payments and seamless monetary storage and exchange, Transfi is the get go! With Transfi individuals and companies operating in Malaysia can;

1. Effortlessly make crossborder collection: Transfi aims to ease down the process of payments from around the world by supporting over 50 currencies and offering instant settlements in the required currency or digital asset.

2. Global payouts and remittance services: Transfi offers solutions to businesses, freelancers, suppliers and retailers operating in different parts of the world getting paid, making payouts and sending remittance to various corners of the globe. 

3. Stablecoin Integration: Transfi provides integration with crypto and stablecoin for making payments and receiving money in the easiest way possible. It supports USDC and USDT for remote teams, exporters and general cross border monetary exchange. They give the benefit of lower fees and super fast settlements.

4. Variety of services and features: Tranfi gets access to more than 250 localised and global payment methods, real-time FX, compliance with KYC/AML and regulations pertaining to specific countries while providing robust customer care making it more efficient and accessible to transact in digital dollars. 

Transfi provides a one stop solution for stablecoin and digital asset transaction across border;

1. Seamless on ramp and off ramp services between a variety of currencies and USDC made easy with an intuitive platform.
2. A wide reach to global remote teams with compliance ready payout rails.
3. API integrations, multiple currencies, payment methods and multi chain networks for international clients. 

Transfi's solutions cater to all native and developing industries in Malaysia making their financial whereabouts easier to handle and making newer solutions approachable with facilitating blockchain adoption.

Conclusion 

Malaysians are highly receptive to digital payments, consistently choosing cashless options to pay for their purchases. While Covid-19 had a massive hand in influencing this preference, the digital-savvy nature of Malaysia’s population has played a much more significant role. Looking ahead, digital payments will continue to grow apace in Malaysia. Given the combined efforts of the government and the people, we can see cash continue to be phased out and adoption of digital new age platforms like Transfi contributing to its digital fluidity and development. 

It has been determined that the adoption of cashless payment methods and platforms like TransFi have had an impact on the convenience, risks and security, as well as the development of good spending habits among consumers. It is evident that the adoption of cashless payment methods will persistently expand in Malaysia’s foreseeable future! 

Also read: Stablecoin Payments in Cyprus: Digital Dollars for Global Trade and Remote Team

Frequently asked questions (FAQs)

1. What are the benefits of crypto payments for exporters in Malaysia?
   The benefits of crypto payments for Malaysian exporters include faster payouts, lower fees, transparency, and greater control over when and how to convert their earnings. 

2. What are the benefits of stablecoin payments? 

• USDC is directly pegged to dollars making it stable.
• It accommodates faster settlements than traditional bank transfers.
• It provides transparency for flows because of its infrastructure on the blockchain. 
• It provides protection from the volatility of fx and euros applicable for international transactions. 

3. How to accept online payments in Malaysia?

To accept online payments in Malaysia, businesses typically need to integrate with a payment gateway or use a platform that provides built-in payment processing like Transfi. This involves setting up an account and integrating their system with your website or online store. The payment gateway securely processes the transaction between the customer, your website, and the bank, ensuring that sensitive payment information is protected. Once the payment is authorized, the funds are typically settled into your business bank account instantly.

4. How does International money transfer to Malaysia work?

International money transfers to Malaysia generally work through a network of banks and financial institutions and can take a significant amount of time if done traditionally. Transfi, on the other hand, makes these payments quicker to settle and easier to initiate by providing a unified solution for currency conversion, payment processing, settlement and withdrawal in the desired currency all at a nominal cost. 

5. How can the earned currency be exchanged with RM in Malaysia?

Digital wallets and payment platforms like TransFi Payouts provide competitive exchange rates and low fees, enabling exporters and people dealing in cross border payments to exchange over 70+ currencies to RM effectively.