Online Payments Service Serves Malaysian Micro-businesses
Malaysian payments provider MOLPay, part of internet group MOL Global, has launched an online payment service targeted at micro businesses, which typically prefer cash on delivery (COD) or interbank transfer methods for online transactions to avoid fees.
MOLPay’s chief executive officer (CEO), Eng Sheng Guan, said the new service, entitled MOLPay-FPX Plan, allows businesses with online stores or electronic commerce (e-commerce) web sites to accept payment from bank accounts of customers whose banks participate in the Financial Process Exchange (FPX).
FPX, an online payment option offered by Malaysian Electronic Clearing (MyClear), allows customers to directly debit their banking accounts without requiring credit cards. FPX-participating banks are Bank Islam, CIMB Bank, Hong Leong Bank, Maybank, Public Bank and RHB Bank.
The service targets micro-enterprises, including merchants selling through blog shops or social media platforms, the company said on its site. Eng added: “We observed that there are many online merchants especially those selling low profit margin products who are still reluctant to engage online payment services to accept payments from their customers due to the common transaction fee charged deemed high. They rather prefer their customers to pay cash on delivery, cash or cheque deposit or interbank transfers.”
MOLPay-FPX Plan charges a 299 ringgit (MYR) (US$98.5) joining fee, with no charge for the first year’s maintenance fee but rising to MYR99 for subsequent years or waived when the minimum requirement is met. Each transaction costs MYR2 and the weekly settlement fee is also MYR2.