Top Payment Gateways for Malaysian Businesses Selling Internationally (2025 Guide)

Introduction

You’ve optimized your ads, perfected your product pages, and finally attracted international traffic to your Malaysian store. A customer in Singapore or Mumbai clicks checkout.

Then, they leave.

For many Malaysian merchants, this is the “silent killer” of growth. You celebrate the sales you do get, but you might be losing significant revenue due to friction at the checkout. Even worse, for the sales that do go through, you could be losing up to 6% of your margin to poor currency conversion rates and hidden “cross-border” payment gateway fees that standard local online payment platforms don’t tell you about.

In 2025, the difference between a “local” gateway and a “cross-border” partner is no longer just about convenience, but is increasingly becoming the difference between breaking even and scaling profitably. Cross-border e-commerce in Southeast Asia recently reached a value of USD17 billion, contributing to 11% of total online sales in the region. Unlocking the cross-border channel as a merchant means you have access to a much larger customer base, one that is willing to spend 21% higher on average than their domestic counterparts.

This guide isn’t just a list. It’s a strategic decision framework to help you choose the right payment gateway and future-proof your global expansion with the best e-commerce payment system.

Key Takeaways

• Settlement Currency Matters: Traditional payment gateways fees often force-convert your USD earnings into MYR immediately. While this simplifies bookkeeping, it can cost you 3–5% in hidden spreads.
• Trust Signals Reduce Abandonment: Data from 2025 shows that 70% of online shopping carts are abandoned, with 13% of users leaving specifically because there weren’t enough payment methods.
• The “Hybrid” Advantage: You no longer need one gateway for FPX (local) and another for International sales. Modern hybrids like Razorpay Curlec now bridge this gap.
• Compliance is Key: Ensure your provider is regulated by Bank Negara Malaysia (BNM) to prevent fund freezes and ensure data privacy.

What is an International Payment Gateway?

At its core, a payment gateway is the digital infrastructure that authorizes payments. However, a Cross-Border Gateway does three specific things that a standard domestic gateway cannot:

1. Multi-Currency Processing: It detects that a card is from the US and allows the customer to pay in USD, even if your store is based in Kuala Lumpur. This is vital for multi-currency support.
2. Dynamic Currency Conversion (DCC): It handles the complex math of converting that USD into your settlement currency (MYR) in real-time.
3. Global Fraud Protection: It uses advanced protocols (like 3D Secure 2.0) to distinguish between a legitimate buyer in Germany and a fraudster using a VPN, ensuring you don’t block real sales.

Why Your “Local-Only” Gateway is Killing International Sales

If you are using a legacy gateway designed primarily for Malaysian FPX transactions, you are likely facing two major hurdles:

1. The “Double Conversion” Trap: When a US customer buys a RM100 item, your local bank gateway often charges the customer in MYR. The customer’s bank charges them a “Foreign Transaction Fee.” Then, if you ever need to pay a supplier in USD, you have to convert your MYR back to USD. With traditional banks often charging a spread of 2–3% on these conversions, you effectively lose a chunk of your margin on every single international payment, paying up to 6% on only conversion fees.
2. Trust & Cart Abandonment: International buyers are skeptical of unfamiliar checkout pages, with nearly 1 in 5 shoppers abandoning their carts because they don’t trust the site with their credit card information.

5 Critical Features for Cross-Border Success

Before signing up with a provider, check for these five capabilities:

1. Multi-Currency Pricing (MCP): Can you display prices in the customer’s currency? Showing “USD 25.00” converts far better than “RM 112.50,” which looks unfamiliar to a US buyer.
2. FX Transparency: Does the gateway show you the real exchange rate they used? Many providers claim “low fees” but hide a markup in the exchange rate.
3. Local Payment Methods (LPMs): To sell globally, you must pay locally.
   • Southeast Asia and China: TNG ewallet (compatible with any Alipay+ supported outlet Singapore, Thailand and Indonesia’s local QR payment method like PayNow and PromptPay)
   • Global: PayPal (Essential for US/EU buyers)
4. Integration Speed: Do they have a plug-and-play plugin for Shopify, WooCommerce, or Magento? Custom API coding takes months; plugins take minutes.

Top Payment Gateways for Malaysian Exporters (Ranked)

We’ve categorized the top players based on your business model:

1. The Local Hybrids

• Best For: SMEs and Mid-Market businesses that need one single stack for both domestic (FPX) and international sales.
• Why They Win: These providers understand the Malaysian context. They offer deep integration with FPX (essential for local sales) while providing robust international card acceptance.
• Settlement: Typically settles in MYR. This is perfect for businesses with local operations (rent, staff, inventory) who want automated conversion without managing complex foreign currency accounts.

2. The Global Tech Giants

• Best For: Tech Startups and SaaS companies.
• Why They Win: They offer a “Like-for-Like” settlement. If you earn USD, you can keep it as USD in a digital wallet. This is powerful if you have heavy expenses in USD (e.g., AWS server costs).
• The Downside: They often lack deep support for Malaysian-specific needs like FPX B2B flows. Transaction gateway charges can also be higher for standard credit cards, often around 3.4% + FX fees for international cards.

3. The Traditional Banks

• Best For: Large Enterprises with massive transaction volumes.
• Why They Win: Direct bank relationships and high trust.
• The Downside: Setup can take weeks, and settlement times for cross-border funds can extend to T+7 days.

Cost Comparison: The “Hidden” Fees

Let’s compare a hypothetical transaction of RM 10,000 from a US customer.

Cost Component	Traditional Bank Gateway	Global Tech Gateway	Razorpay Curlec
Setup Fee	RM 500 – RM 1,000	RM 0	RM 0
MDR (Transaction Fee)	~2.5%	~3.4% + RM 2.00	Competitive Custom Rates
FX Spread (Hidden)	2.0% – 3.0%	1.0% – 2.0%	1.0% – 2.0%
Net Result	High hidden costs	Good for holding USD	Best balance for MYR cash flow

Empowering Businesses with Razorpay Curlec

If you are a Malaysian business looking to expand regionally, Razorpay Curlec offers a unique “best of both worlds” proposition.

• The “Bridge to Asia”: Unlike US-centric gateways, Razorpay Curlec specializes in Asian payment behaviors. Our recent partnership with UPI is a game-changer for merchants targeting Indian customers, ensuring that in early 2026 you can easily accept payments from apps like GPay and PhonePe directly.
• PayPal Integration: Seamlessly connect your PayPal account to Razorpay Curlec to offer a trusted global checkout option. This gives you access to over 300 million active users worldwide while managing everything from a single dashboard.
• Automated Conversion: Razorpay Curlec simplifies your bookkeeping by accepting global currencies and automatically settling them into your Malaysian bank account in Ringgit. You don’t need to open a foreign currency account or manage complex forex hedging; the complexity is handled for you.
• Recurring Revenue: If you sell subscriptions (SaaS, mentorship, box subscriptions) internationally, Razorpay Curlec’s automated recurring payment engine is unrivalled in the region.

Regulatory Checklist: Bank Negara & Compliance

Never compromise on security. Ensure your chosen partner checks these boxes:

• Bank Negara Malaysia (BNM) Approved: Ensures your funds are regulated and safe.
• PCI DSS Level 1: The highest standard of global data security.
• PDPA Compliant: Protects your customer’s data under Malaysian law.

Conclusion

• Choose a Global Tech Gateway if you are a SaaS company with 90% of your expenses in USD and need to hold foreign currency.
• Choose a Bank Gateway if you are a massive conglomerate with rigid existing banking ties.
• Choose Razorpay Curlec if you are a Malaysian SME or Mid-Market business acting as a “Hybrid.” You want to sell to the world (especially Asia/India) but settle your cash flow in Malaysia to pay your staff and grow your local operations.

Ready to stop losing margins to FX fees? Sign up now at curlec.com.

Frequently Asked Questions (FAQ)

Q: Do I need a foreign currency account (FCA) to sell internationally?

A: Not necessarily. With hybrid gateways like Razorpay Curlec, you can accept payments in USD, SGD, or GBP, and the gateway will automatically convert and settle the funds into your existing Malaysian bank account in Ringgit (MYR).

Q: What is the best payment gateway for selling to India?

A: You need a gateway that supports UPI. Razorpay Curlec is a market leader for UPI integration in Malaysia, enabling merchants to tap into the Indian tourist and export market.

Q: Can I accept PayPal through Razorpay Curlec?

A: Yes. Razorpay Curlec allows you to integrate PayPal directly into your checkout. This provides international customers with a trusted payment method while you track all transactions on one unified dashboard.

Q: How much does it cost to accept international payments?

A: Costs typically include a transaction fee (MDR) plus a foreign exchange spread. While banks may charge 2-3% in FX spreads, modern gateways often offer more competitive rates. Always ask about the “spread” to avoid hidden costs.

Q: Why do international transactions fail more often?

A: International cards trigger more fraud alerts. A high-quality gateway uses “Smart Routing” and “3D Secure 2.0” to prove to the foreign bank that the transaction is legitimate, significantly boosting your success rate.