FPX vs DuitNow: Understanding Malaysia’s Core Payment Rails

For any business operating in Malaysia’s digital economy, two names form the foundation of the nation’s cashless payment system: FPX and DuitNow. Both are operated by PayNet, backed by Bank Negara Malaysia, and are deeply trusted by millions of consumers and businesses alike.

However, understanding their distinct roles is crucial for building an effective payment strategy. They are not interchangeable competitors; rather, they are two powerful, complementary systems designed for different scenarios. When should your business use FPX? When is DuitNow the better choice? And how do they work together?

This in-depth guide provides a clear, comprehensive comparison of Malaysia’s core payment rails. We will dive deep into the specific use cases, benefits, and limitations of each, empowering you to make strategic decisions that enhance customer experience and streamline your operations.

Key Takeaways

• Different Core Functions: FPX is a specialized payment method designed for secure e-commerce checkouts. DuitNow is a comprehensive ecosystem for a wide range of real-time, account-to-account transfers.
• FPX is the E-commerce Champion: It excels in online retail by redirecting customers to their trusted bank portal to authorize payments, offering unmatched security for online purchases.
• DuitNow is the All-Rounder for Instant Payments: It shines in various scenarios, from in-person retail and F&B using DuitNow QR to instant invoice and B2B payments via DuitNow Transfer.
• Complementary, Not Competitive: A complete payment strategy for a modern Malaysian business involves leveraging both: FPX for dedicated online sales and DuitNow for in-person, mobile, and invoice-based transactions.
• Unified Access is Essential: The most efficient way to offer and manage both is through a single, modern payment gateway that integrates both systems into a unified workflow and reconciliation process.

A Deep Dive into FPX: The E-commerce Checkout Specialist

Think of FPX (Financial Process Exchange) as the most secure and popular “Pay with Online Banking” button on an e-commerce website.

• How it Works: When a customer selects FPX at your checkout, they are securely redirected to their chosen bank’s online login portal. They log in with their existing credentials and approve the pre-filled transaction details, usually with a TAC. At no point does your business see or handle their sensitive banking information.
• Primary Use Case: It is purpose-built for B2C and B2B purchases on e-commerce websites and online platforms.
• Key Business Benefit: It offers very low transaction fees compared to cards and a significantly reduced risk of fraudulent chargebacks due to its strong, bank-level authentication.

A Deep Dive into DuitNow: The Ecosystem for Instant, Everyday Payments

DuitNow is a broader, real-time payment network. For businesses, its two most important services are DuitNow Transfer and DuitNow QR.

How it Works?

• DuitNow Transfer allows instant payments using simple IDs like a business registration number, mobile number, or NRIC, eliminating the need for account numbers.
• DuitNow QR is Malaysia’s national QR standard. A single, interoperable QR code can accept payments from dozens of different bank and e-wallet apps.

• Primary Use Case: DuitNow QR is ideal for physical retail, F&B outlets, and for placing on invoices. DuitNow Transfer is excellent for B2B payments and receiving direct payments from customers.
• Key Business Benefit: It provides instant settlement of funds into your account, requires no expensive hardware (just a QR code), and is incredibly convenient for customers.

FPX vs. DuitNow: In-Depth Comparison Table

Feature	FPX (Financial Process Exchange)	DuitNow
Primary Role	A dedicated e-commerce payment method for online checkouts.	A comprehensive real-time payment ecosystem for multiple scenarios.
Transaction Flow	Redirect Model: Customer is redirected from your website to their bank’s secure login portal to approve a pre-filled transaction.	Scan/ID Model: Customer scans a QR code with their mobile app or initiates a transfer using a simple ID (e.g., phone or business number).
Ideal Use Case	Online Stores & Booking Platforms: Perfect for desktop and mobile web checkouts where security is a top priority for customers.	Physical Retail & Mobile Payments: DuitNow QR is unmatched for in-person POS, F&B, and invoice payments. DuitNow Transfer is ideal for B2B.
Authentication	High-Security, Multi-Factor: Requires bank login credentials plus a Transaction Authorisation Code (TAC).	App-Based & Convenient: Uses the security of the customer’s mobile banking app, typically a PIN or biometrics (fingerprint/face ID).
Settlement Speed	Real-Time Authorisation: You get instant confirmation to fulfil the order, but funds are typically settled in your account in T+1 or T+2 days.	Instant Settlement: Funds are transferred and settled into your bank account in seconds, 24/7.
Key Strength	Maximum Security & Trust: The redirect to a familiar banking portal gives customers the highest level of confidence for online purchases.	Speed, Versatility & Convenience: Unmatched for fast, everyday transactions across multiple channels (in-person, mobile, invoices).
Limitation	Not suitable for in-person, point-of-sale transactions as it requires a web browser flow.	The DuitNow QR scan flow can be slightly less seamless for a customer on a desktop computer compared to the FPX redirect.

Did You Know?

Both FPX and DuitNow are operated by PayNet (Payments Network Malaysia Sdn Bhd), which is the national payments network and central infrastructure for Malaysia’s financial system. This is by design, ensuring that both systems are secure, interoperable, and work together to support the nation’s goal of becoming a cashless society.

How FPX and DuitNow Work Together for Your Business

The most effective payment strategy uses both systems to cover all customer touchpoints.

Business Example: A fashion retailer in Penang runs a popular e-commerce website.

• For their online store, they use FPX as the primary payment method at checkout, giving customers a secure and trusted way to pay directly from their bank accounts.
• In their physical boutique, they display a DuitNow QR code at the counter for quick, cashless payments.
• For a special custom order, they send the customer an invoice with the same DuitNow QR code attached for easy remote payment.

This multi-channel approach is made simple by a unified payment gateway. A provider like Razorpay Curlec integrates both FPX and DuitNow into a single platform. This means you can have FPX on your website’s checkout page and generate DuitNow QR codes for your invoices, all while managing and reconciling the payments in one central dashboard.

Ready to Offer a Complete Malaysian Payment Experience?

Don’t make customers choose. Give them the payment methods they know and trust, exactly when and where they need them.

Learn how Razorpay Curlec can unify FPX and DuitNow for your business.

Conclusion

FPX and DuitNow are not competitors; they are two essential, complementary components of Malaysia’s world-class payment infrastructure. FPX is your specialized tool for secure e-commerce sales, while DuitNow is your versatile solution for instant, everyday transactions. By understanding their unique strengths and integrating both into your operations through a modern payment gateway, you can provide a truly comprehensive and seamless payment experience for every one of your customers.

Frequently Asked Questions (FAQs) for Malaysian Merchants

Which is cheaper for my business, FPX or DuitNow?

Both FPX and DuitNow are very cost-effective for businesses and typically have low, often fixed, transaction fees that are much cheaper than percentage-based credit card fees. The exact cost will depend on your payment gateway provider, but both are considered low-cost payment rails.

Can I use DuitNow QR on my e-commerce checkout page?

Yes. A modern payment gateway can generate a dynamic DuitNow QR code directly on your checkout page. The customer simply scans it with their mobile banking app to pay. While FPX is still more common for desktop users, DuitNow QR is an excellent option for mobile shoppers.

Do I need to apply for FPX and DuitNow separately?

If you go directly to a bank, you might have to. However, the easiest way is to partner with a payment gateway like Razorpay Curlec. We provide access to both FPX and DuitNow through a single, simple integration.

Are both FPX and DuitNow safe and secure?

Absolutely. Both systems are operated by PayNet and are subject to the high security standards of Bank Negara Malaysia. They leverage the security of Malaysia’s banking system to ensure all transactions are safe for both businesses and consumers.