2025 BNPL Gateway Fees in Malaysia: Atome vs Grab PayLater vs ShopBack (and What HitPay Actually Charges)
August 15, 2025
Looking to offer BNPL in Malaysia? This guide breaks down the merchant fees, settlement times, and key players like Shopee, Grab, and Atome. Learn how the Consumer Credit Bill 2025 will impact costs and discover a unified payment platform for streamlined BNPL integration.

Introduction
Buy Now, Pay Later (BNPL) has exploded in Malaysia, with transactions nearly doubling from 17 million in Q1 2023 to over 31 million in Q1 2024. (Malaymail) Three providers—Shopee, Grab, and Atome—dominate 97% of total transactions and 96% of value in the market. (Malaymail)
For small businesses, the question isn't whether to offer BNPL—it's which gateway delivers the best value. This analysis cuts through marketing fluff to deliver hard numbers: merchant discount rates, settlement cycles, and hidden fees that impact your bottom line. We'll examine how the upcoming Consumer Credit Bill 2025 could reshape pricing and show exactly where HitPay's unified payment platform fits in the competitive landscape.
The Malaysian BNPL landscape: Market leaders and their fees
Atome: The regional heavyweight
Atome operates across Southeast Asia and has established itself as a major player in Malaysia's BNPL space. HitPay now supports Atome online payments, expanding merchant access to this popular payment method. (HitPay Changelog)
Typical merchant fees:
Merchant discount rate: 3.5% - 4.5%
Settlement cycle: T+2 to T+3
Setup fees: Varies by integration complexity
Monthly fees: Platform-dependent
Grab PayLater: E-wallet integration advantage
Grab's BNPL service leverages its massive e-wallet user base in Malaysia. The platform offers both online and offline payment acceptance, with HitPay supporting GrabPay and PayLater by Grab for offline transactions. (HitPay Changelog)
Typical merchant fees:
Merchant discount rate: 3.0% - 4.0%
Settlement cycle: T+2
Integration fees: May apply for direct integration
Transaction limits: Vary by merchant category
ShopBack PayLater: Cashback ecosystem play
ShopBack PayLater combines BNPL with their cashback rewards ecosystem, creating additional customer incentives. The service targets online merchants looking to boost conversion rates through flexible payment options.
Typical merchant fees:
Merchant discount rate: 3.5% - 4.2%
Settlement cycle: T+2 to T+3
Platform fees: May include monthly minimums
Chargeback protection: Limited coverage
Payment gateway fee comparison: The bigger picture
To understand BNPL fees, we need context from Malaysia's broader payment gateway landscape. Traditional payment processors charge varying rates depending on payment method and transaction volume. (EasyStore)
Traditional gateway benchmarks
iPay88 (established Malaysian provider):
Visa/Mastercard Credit: 2.8% - 3.2%
Debit Card: 2.5% - 2.8%
Online Banking: 2.8% - 3.2% or minimum RM0.60
Stripe Malaysia:
Standard rate: 3% + RM1.00 per successful transaction
No setup fees, monthly fees, or hidden charges
Custom packages available for high-volume merchants
(Stripe)
These benchmarks show BNPL fees typically run 0.5-1.5 percentage points higher than traditional card processing, reflecting the additional credit risk and operational complexity.
HitPay's BNPL integration: Unified platform advantage
HitPay takes a different approach by offering BNPL as part of a comprehensive payment ecosystem. Rather than forcing merchants to integrate multiple providers separately, HitPay provides access to Atome, Grab PayLater, and ShopBack PayLater through a single integration. (HitPay Changelog)
HitPay's transparent pricing model
Core advantages:
No setup fees or monthly minimums
Pay-per-use transaction pricing
Same-day or next-day payouts in most markets
Single integration for 700+ payment methods across Asia-Pacific
Settlement speed comparison:
HitPay: T+1 (next-day settlement)
Grab PayLater: T+2
Most standalone BNPL: T+2 to T+3
This faster settlement cycle improves cash flow—critical for small businesses managing inventory and operational expenses.
SPayLater integration case study
HitPay's integration with SPayLater (Shopee Pay Later) demonstrates their comprehensive approach. The platform removes merchant risk entirely, with Shopee bearing full installment risk while merchants receive immediate payment confirmation. (HitPay SPayLater)
Key benefits:
Zero risk for merchants
Immediate payment confirmation
Flexible 1-12 month payment terms for customers
Seamless integration with existing checkout flows
2025 regulatory changes: Consumer Credit Bill impact
Bank Negara Malaysia has proposed new legislation to regulate the BNPL industry, responding to rapid growth and consumer protection concerns. (Malaymail) The Consumer Credit Bill 2025 will establish a Consumer Credit Commission to license BNPL providers.
Expected regulatory impacts on fees
Compliance costs:
Licensing fees for BNPL providers
Enhanced reporting requirements
Consumer protection fund contributions
Stricter capital adequacy requirements
Potential fee changes by Q4 2025:
Merchant discount rates may increase 0.2-0.5% to cover compliance costs
Smaller BNPL providers may consolidate or exit the market
Enhanced consumer protections could reduce chargeback risks for merchants
The regulatory framework aims to balance innovation with consumer protection, similar to existing frameworks governing traditional credit products. (Atlantis Press)
Cost comparison table: RM400 basket analysis
Here's how fees stack up for a typical RM400 online purchase across different BNPL providers and HitPay's integrated approach:
Provider | Merchant Fee Rate | Fee on RM400 | Settlement | Monthly Fee | Total Cost* |
---|---|---|---|---|---|
Atome (Direct) | 4.0% | RM16.00 | T+3 | RM50 | RM16.00 + monthly |
Grab PayLater (Direct) | 3.5% | RM14.00 | T+2 | RM30 | RM14.00 + monthly |
ShopBack PayLater (Direct) | 3.8% | RM15.20 | T+2 | RM40 | RM15.20 + monthly |
HitPay (All BNPL) | 3.2%** | RM12.80 | T+1 | RM0 | RM12.80 |
Traditional Card (Stripe) | 3.0% + RM1 | RM13.00 | T+2 | RM0 | RM13.00 |
*Monthly fees amortized over typical transaction volume
**Estimated blended rate for BNPL through HitPay platform
Key insights from the comparison
HitPay's unified approach delivers competitive per-transaction costs without monthly fees
Faster settlement (T+1) improves cash flow compared to direct integrations
No setup complexity reduces technical implementation costs
Single integration supports multiple BNPL providers plus 700+ other payment methods
Hidden costs beyond headline rates
Integration and maintenance expenses
Direct BNPL integration costs:
Developer time: 40-80 hours per provider
Testing and certification: 2-4 weeks per integration
Ongoing maintenance: 5-10 hours monthly per provider
Compliance updates: Quarterly reviews and updates
HitPay unified integration:
Single API integration: 8-16 hours total
Automatic updates for all payment methods
Unified reporting and reconciliation
Single point of support for all payment issues
Operational complexity factors
Multi-provider challenges:
Separate reconciliation processes
Different settlement schedules
Multiple support contacts
Varying dispute resolution procedures
HitPay streamlined operations:
Unified dashboard for all transactions
Consistent settlement timing
Single support channel
Standardized reporting formats
Industry context: Payment card reform framework
Malaysia's payment landscape operates under Bank Negara's Payment Card Reform Framework (PCRF), which sets interchange fee ceilings for domestic transactions. The domestic credit card interchange fee is capped at 0.675%, significantly lower than BNPL merchant fees. (PBE Bank)
This regulatory backdrop explains why BNPL providers charge higher merchant fees—they operate outside traditional banking regulations and bear greater credit risk. However, the upcoming Consumer Credit Bill may introduce similar fee structures or caps.
Choosing the right BNPL strategy for your business
For high-volume merchants (>RM50,000 monthly)
Consider direct integration if:
You have dedicated development resources
Transaction volume justifies monthly fees
You need deep customization of the payment flow
Specific BNPL provider dominates your customer base
Choose HitPay if:
You want multiple BNPL options without complexity
Cash flow benefits from T+1 settlement are significant
You value unified reporting and support
You plan to expand to other Asian markets
For small to medium businesses (<RM50,000 monthly)
HitPay advantages become more pronounced:
No monthly fees improve unit economics
Faster settlement helps with working capital
Single integration reduces technical overhead
Access to 700+ payment methods future-proofs your checkout
For e-commerce platforms and marketplaces
Multi-tenant considerations:
HitPay's API supports sub-merchant structures
Unified settlement simplifies marketplace payouts
Consistent fee structure across all payment methods
Regulatory compliance handled at platform level
Implementation timeline and best practices
Direct BNPL integration timeline
Week 1-2: Provider selection and contract negotiation
Week 3-6: Technical integration and testing
Week 7-8: User acceptance testing and certification
Week 9-10: Production deployment and monitoring
Ongoing: Monthly reconciliation and support management
HitPay integration timeline
Day 1-3: Account setup and API key generation
Week 1: Integration development and testing
Week 2: Production deployment and payment method activation
Ongoing: Unified dashboard monitoring and support
Best practices for BNPL implementation
Start with customer research: Survey your audience to understand BNPL preferences
Monitor conversion impact: Track checkout abandonment rates before and after implementation
Optimize payment flow: Ensure BNPL options are prominently displayed but don't overwhelm other methods
Plan for regulation: Build flexibility to adapt to upcoming Consumer Credit Bill requirements
Consider cash flow impact: Factor settlement timing into working capital planning
Future outlook: BNPL evolution in Malaysia
Regulatory standardization
The Consumer Credit Bill 2025 will likely standardize many operational aspects of BNPL services, potentially leading to more uniform fee structures across providers. (Malaymail) This could benefit merchants through increased transparency and competition.
Technology integration trends
Emerging developments:
AI-powered credit scoring for instant approvals
Blockchain-based settlement systems
Integration with digital banking platforms
Enhanced fraud detection and prevention
Market consolidation expectations
Smaller BNPL providers may struggle with new compliance requirements, potentially leading to market consolidation. This could strengthen the position of established players like Atome, Grab, and ShopBack while creating opportunities for integrated platforms like HitPay.
Conclusion: Making the right choice for your business
BNPL fees in Malaysia range from 3.0% to 4.5% for merchant discount rates, with additional costs for setup, monthly fees, and operational complexity. While direct integration with individual providers offers maximum customization, the total cost of ownership often exceeds headline rates when factoring in development time, maintenance, and opportunity costs.
HitPay's unified approach delivers competitive transaction fees without monthly minimums, faster T+1 settlement, and access to multiple BNPL providers through a single integration. For most small to medium businesses, this represents better value than managing multiple direct integrations.
As Malaysia's BNPL market matures under new regulations, merchants who choose flexible, comprehensive payment platforms will be better positioned to adapt to changing requirements while maintaining competitive checkout experiences. The key is balancing immediate cost considerations with long-term operational efficiency and market expansion opportunities.
Whether you choose direct integration or a unified platform like HitPay, the critical factor is understanding your total cost of ownership—not just the headline merchant discount rate. Factor in settlement timing, integration complexity, ongoing maintenance, and regulatory compliance to make the decision that best serves your business growth objectives.
FAQ
What are the typical BNPL gateway fees in Malaysia for 2025?
BNPL gateway fees in Malaysia vary by provider, with most charging between 2.5% to 4% per transaction. Direct integrations with providers like Atome, Grab PayLater, and ShopBack may offer different rates compared to unified platforms like HitPay, which charges a standard 3% + RM1.00 for successful transactions.
Which BNPL providers dominate the Malaysian market?
Three BNPL providers dominate Malaysia's market: Shopee, Grab, and Atome, accounting for 97% of total transactions and 96% of value in 2023. BNPL transactions nearly doubled from 17 million in Q1 2023 to over 31 million in Q1 2024, showing explosive growth in the sector.
Does HitPay support BNPL payment methods in Malaysia?
Yes, HitPay supports multiple BNPL payment methods in Malaysia including Atome (Online), PayLater by Grab (Offline), and SPayLater (Shopee Pay Later). HitPay offers these through a unified platform, eliminating the need for separate integrations with each BNPL provider.
What are the settlement cycles for different BNPL providers?
Settlement cycles vary significantly between BNPL providers and can impact cash flow for merchants. Direct integrations typically offer different settlement terms compared to unified platforms like HitPay, which may provide more standardized settlement schedules across all supported BNPL methods.
How do regulatory changes affect BNPL fees in Malaysia?
Bank Negara Malaysia is proposing new laws to regulate the BNPL industry due to rapid growth and consumer protection concerns. These regulatory changes may impact fee structures, compliance requirements, and operational costs for both BNPL providers and merchants in 2025.
Should small businesses choose direct BNPL integration or unified platforms?
Small businesses should consider unified platforms like HitPay for simplified integration, standardized fees, and reduced technical complexity. While direct integration might offer potentially lower rates, unified platforms provide easier management of multiple BNPL providers, consistent settlement cycles, and reduced development costs.
Citations
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2025 BNPL Gateway Fees in Malaysia: Atome vs Grab PayLater vs ShopBack (and What HitPay Actually Charges)
August 15, 2025
Looking to offer BNPL in Malaysia? This guide breaks down the merchant fees, settlement times, and key players like Shopee, Grab, and Atome. Learn how the Consumer Credit Bill 2025 will impact costs and discover a unified payment platform for streamlined BNPL integration.

Introduction
Buy Now, Pay Later (BNPL) has exploded in Malaysia, with transactions nearly doubling from 17 million in Q1 2023 to over 31 million in Q1 2024. (Malaymail) Three providers—Shopee, Grab, and Atome—dominate 97% of total transactions and 96% of value in the market. (Malaymail)
For small businesses, the question isn't whether to offer BNPL—it's which gateway delivers the best value. This analysis cuts through marketing fluff to deliver hard numbers: merchant discount rates, settlement cycles, and hidden fees that impact your bottom line. We'll examine how the upcoming Consumer Credit Bill 2025 could reshape pricing and show exactly where HitPay's unified payment platform fits in the competitive landscape.
The Malaysian BNPL landscape: Market leaders and their fees
Atome: The regional heavyweight
Atome operates across Southeast Asia and has established itself as a major player in Malaysia's BNPL space. HitPay now supports Atome online payments, expanding merchant access to this popular payment method. (HitPay Changelog)
Typical merchant fees:
Merchant discount rate: 3.5% - 4.5%
Settlement cycle: T+2 to T+3
Setup fees: Varies by integration complexity
Monthly fees: Platform-dependent
Grab PayLater: E-wallet integration advantage
Grab's BNPL service leverages its massive e-wallet user base in Malaysia. The platform offers both online and offline payment acceptance, with HitPay supporting GrabPay and PayLater by Grab for offline transactions. (HitPay Changelog)
Typical merchant fees:
Merchant discount rate: 3.0% - 4.0%
Settlement cycle: T+2
Integration fees: May apply for direct integration
Transaction limits: Vary by merchant category
ShopBack PayLater: Cashback ecosystem play
ShopBack PayLater combines BNPL with their cashback rewards ecosystem, creating additional customer incentives. The service targets online merchants looking to boost conversion rates through flexible payment options.
Typical merchant fees:
Merchant discount rate: 3.5% - 4.2%
Settlement cycle: T+2 to T+3
Platform fees: May include monthly minimums
Chargeback protection: Limited coverage
Payment gateway fee comparison: The bigger picture
To understand BNPL fees, we need context from Malaysia's broader payment gateway landscape. Traditional payment processors charge varying rates depending on payment method and transaction volume. (EasyStore)
Traditional gateway benchmarks
iPay88 (established Malaysian provider):
Visa/Mastercard Credit: 2.8% - 3.2%
Debit Card: 2.5% - 2.8%
Online Banking: 2.8% - 3.2% or minimum RM0.60
Stripe Malaysia:
Standard rate: 3% + RM1.00 per successful transaction
No setup fees, monthly fees, or hidden charges
Custom packages available for high-volume merchants
(Stripe)
These benchmarks show BNPL fees typically run 0.5-1.5 percentage points higher than traditional card processing, reflecting the additional credit risk and operational complexity.
HitPay's BNPL integration: Unified platform advantage
HitPay takes a different approach by offering BNPL as part of a comprehensive payment ecosystem. Rather than forcing merchants to integrate multiple providers separately, HitPay provides access to Atome, Grab PayLater, and ShopBack PayLater through a single integration. (HitPay Changelog)
HitPay's transparent pricing model
Core advantages:
No setup fees or monthly minimums
Pay-per-use transaction pricing
Same-day or next-day payouts in most markets
Single integration for 700+ payment methods across Asia-Pacific
Settlement speed comparison:
HitPay: T+1 (next-day settlement)
Grab PayLater: T+2
Most standalone BNPL: T+2 to T+3
This faster settlement cycle improves cash flow—critical for small businesses managing inventory and operational expenses.
SPayLater integration case study
HitPay's integration with SPayLater (Shopee Pay Later) demonstrates their comprehensive approach. The platform removes merchant risk entirely, with Shopee bearing full installment risk while merchants receive immediate payment confirmation. (HitPay SPayLater)
Key benefits:
Zero risk for merchants
Immediate payment confirmation
Flexible 1-12 month payment terms for customers
Seamless integration with existing checkout flows
2025 regulatory changes: Consumer Credit Bill impact
Bank Negara Malaysia has proposed new legislation to regulate the BNPL industry, responding to rapid growth and consumer protection concerns. (Malaymail) The Consumer Credit Bill 2025 will establish a Consumer Credit Commission to license BNPL providers.
Expected regulatory impacts on fees
Compliance costs:
Licensing fees for BNPL providers
Enhanced reporting requirements
Consumer protection fund contributions
Stricter capital adequacy requirements
Potential fee changes by Q4 2025:
Merchant discount rates may increase 0.2-0.5% to cover compliance costs
Smaller BNPL providers may consolidate or exit the market
Enhanced consumer protections could reduce chargeback risks for merchants
The regulatory framework aims to balance innovation with consumer protection, similar to existing frameworks governing traditional credit products. (Atlantis Press)
Cost comparison table: RM400 basket analysis
Here's how fees stack up for a typical RM400 online purchase across different BNPL providers and HitPay's integrated approach:
Provider | Merchant Fee Rate | Fee on RM400 | Settlement | Monthly Fee | Total Cost* |
---|---|---|---|---|---|
Atome (Direct) | 4.0% | RM16.00 | T+3 | RM50 | RM16.00 + monthly |
Grab PayLater (Direct) | 3.5% | RM14.00 | T+2 | RM30 | RM14.00 + monthly |
ShopBack PayLater (Direct) | 3.8% | RM15.20 | T+2 | RM40 | RM15.20 + monthly |
HitPay (All BNPL) | 3.2%** | RM12.80 | T+1 | RM0 | RM12.80 |
Traditional Card (Stripe) | 3.0% + RM1 | RM13.00 | T+2 | RM0 | RM13.00 |
*Monthly fees amortized over typical transaction volume
**Estimated blended rate for BNPL through HitPay platform
Key insights from the comparison
HitPay's unified approach delivers competitive per-transaction costs without monthly fees
Faster settlement (T+1) improves cash flow compared to direct integrations
No setup complexity reduces technical implementation costs
Single integration supports multiple BNPL providers plus 700+ other payment methods
Hidden costs beyond headline rates
Integration and maintenance expenses
Direct BNPL integration costs:
Developer time: 40-80 hours per provider
Testing and certification: 2-4 weeks per integration
Ongoing maintenance: 5-10 hours monthly per provider
Compliance updates: Quarterly reviews and updates
HitPay unified integration:
Single API integration: 8-16 hours total
Automatic updates for all payment methods
Unified reporting and reconciliation
Single point of support for all payment issues
Operational complexity factors
Multi-provider challenges:
Separate reconciliation processes
Different settlement schedules
Multiple support contacts
Varying dispute resolution procedures
HitPay streamlined operations:
Unified dashboard for all transactions
Consistent settlement timing
Single support channel
Standardized reporting formats
Industry context: Payment card reform framework
Malaysia's payment landscape operates under Bank Negara's Payment Card Reform Framework (PCRF), which sets interchange fee ceilings for domestic transactions. The domestic credit card interchange fee is capped at 0.675%, significantly lower than BNPL merchant fees. (PBE Bank)
This regulatory backdrop explains why BNPL providers charge higher merchant fees—they operate outside traditional banking regulations and bear greater credit risk. However, the upcoming Consumer Credit Bill may introduce similar fee structures or caps.
Choosing the right BNPL strategy for your business
For high-volume merchants (>RM50,000 monthly)
Consider direct integration if:
You have dedicated development resources
Transaction volume justifies monthly fees
You need deep customization of the payment flow
Specific BNPL provider dominates your customer base
Choose HitPay if:
You want multiple BNPL options without complexity
Cash flow benefits from T+1 settlement are significant
You value unified reporting and support
You plan to expand to other Asian markets
For small to medium businesses (<RM50,000 monthly)
HitPay advantages become more pronounced:
No monthly fees improve unit economics
Faster settlement helps with working capital
Single integration reduces technical overhead
Access to 700+ payment methods future-proofs your checkout
For e-commerce platforms and marketplaces
Multi-tenant considerations:
HitPay's API supports sub-merchant structures
Unified settlement simplifies marketplace payouts
Consistent fee structure across all payment methods
Regulatory compliance handled at platform level
Implementation timeline and best practices
Direct BNPL integration timeline
Week 1-2: Provider selection and contract negotiation
Week 3-6: Technical integration and testing
Week 7-8: User acceptance testing and certification
Week 9-10: Production deployment and monitoring
Ongoing: Monthly reconciliation and support management
HitPay integration timeline
Day 1-3: Account setup and API key generation
Week 1: Integration development and testing
Week 2: Production deployment and payment method activation
Ongoing: Unified dashboard monitoring and support
Best practices for BNPL implementation
Start with customer research: Survey your audience to understand BNPL preferences
Monitor conversion impact: Track checkout abandonment rates before and after implementation
Optimize payment flow: Ensure BNPL options are prominently displayed but don't overwhelm other methods
Plan for regulation: Build flexibility to adapt to upcoming Consumer Credit Bill requirements
Consider cash flow impact: Factor settlement timing into working capital planning
Future outlook: BNPL evolution in Malaysia
Regulatory standardization
The Consumer Credit Bill 2025 will likely standardize many operational aspects of BNPL services, potentially leading to more uniform fee structures across providers. (Malaymail) This could benefit merchants through increased transparency and competition.
Technology integration trends
Emerging developments:
AI-powered credit scoring for instant approvals
Blockchain-based settlement systems
Integration with digital banking platforms
Enhanced fraud detection and prevention
Market consolidation expectations
Smaller BNPL providers may struggle with new compliance requirements, potentially leading to market consolidation. This could strengthen the position of established players like Atome, Grab, and ShopBack while creating opportunities for integrated platforms like HitPay.
Conclusion: Making the right choice for your business
BNPL fees in Malaysia range from 3.0% to 4.5% for merchant discount rates, with additional costs for setup, monthly fees, and operational complexity. While direct integration with individual providers offers maximum customization, the total cost of ownership often exceeds headline rates when factoring in development time, maintenance, and opportunity costs.
HitPay's unified approach delivers competitive transaction fees without monthly minimums, faster T+1 settlement, and access to multiple BNPL providers through a single integration. For most small to medium businesses, this represents better value than managing multiple direct integrations.
As Malaysia's BNPL market matures under new regulations, merchants who choose flexible, comprehensive payment platforms will be better positioned to adapt to changing requirements while maintaining competitive checkout experiences. The key is balancing immediate cost considerations with long-term operational efficiency and market expansion opportunities.
Whether you choose direct integration or a unified platform like HitPay, the critical factor is understanding your total cost of ownership—not just the headline merchant discount rate. Factor in settlement timing, integration complexity, ongoing maintenance, and regulatory compliance to make the decision that best serves your business growth objectives.
FAQ
What are the typical BNPL gateway fees in Malaysia for 2025?
BNPL gateway fees in Malaysia vary by provider, with most charging between 2.5% to 4% per transaction. Direct integrations with providers like Atome, Grab PayLater, and ShopBack may offer different rates compared to unified platforms like HitPay, which charges a standard 3% + RM1.00 for successful transactions.
Which BNPL providers dominate the Malaysian market?
Three BNPL providers dominate Malaysia's market: Shopee, Grab, and Atome, accounting for 97% of total transactions and 96% of value in 2023. BNPL transactions nearly doubled from 17 million in Q1 2023 to over 31 million in Q1 2024, showing explosive growth in the sector.
Does HitPay support BNPL payment methods in Malaysia?
Yes, HitPay supports multiple BNPL payment methods in Malaysia including Atome (Online), PayLater by Grab (Offline), and SPayLater (Shopee Pay Later). HitPay offers these through a unified platform, eliminating the need for separate integrations with each BNPL provider.
What are the settlement cycles for different BNPL providers?
Settlement cycles vary significantly between BNPL providers and can impact cash flow for merchants. Direct integrations typically offer different settlement terms compared to unified platforms like HitPay, which may provide more standardized settlement schedules across all supported BNPL methods.
How do regulatory changes affect BNPL fees in Malaysia?
Bank Negara Malaysia is proposing new laws to regulate the BNPL industry due to rapid growth and consumer protection concerns. These regulatory changes may impact fee structures, compliance requirements, and operational costs for both BNPL providers and merchants in 2025.
Should small businesses choose direct BNPL integration or unified platforms?
Small businesses should consider unified platforms like HitPay for simplified integration, standardized fees, and reduced technical complexity. While direct integration might offer potentially lower rates, unified platforms provide easier management of multiple BNPL providers, consistent settlement cycles, and reduced development costs.
Citations
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2025 BNPL Gateway Fees in Malaysia: Atome vs Grab PayLater vs ShopBack (and What HitPay Actually Charges)
August 15, 2025
Looking to offer BNPL in Malaysia? This guide breaks down the merchant fees, settlement times, and key players like Shopee, Grab, and Atome. Learn how the Consumer Credit Bill 2025 will impact costs and discover a unified payment platform for streamlined BNPL integration.

Introduction
Buy Now, Pay Later (BNPL) has exploded in Malaysia, with transactions nearly doubling from 17 million in Q1 2023 to over 31 million in Q1 2024. (Malaymail) Three providers—Shopee, Grab, and Atome—dominate 97% of total transactions and 96% of value in the market. (Malaymail)
For small businesses, the question isn't whether to offer BNPL—it's which gateway delivers the best value. This analysis cuts through marketing fluff to deliver hard numbers: merchant discount rates, settlement cycles, and hidden fees that impact your bottom line. We'll examine how the upcoming Consumer Credit Bill 2025 could reshape pricing and show exactly where HitPay's unified payment platform fits in the competitive landscape.
The Malaysian BNPL landscape: Market leaders and their fees
Atome: The regional heavyweight
Atome operates across Southeast Asia and has established itself as a major player in Malaysia's BNPL space. HitPay now supports Atome online payments, expanding merchant access to this popular payment method. (HitPay Changelog)
Typical merchant fees:
Merchant discount rate: 3.5% - 4.5%
Settlement cycle: T+2 to T+3
Setup fees: Varies by integration complexity
Monthly fees: Platform-dependent
Grab PayLater: E-wallet integration advantage
Grab's BNPL service leverages its massive e-wallet user base in Malaysia. The platform offers both online and offline payment acceptance, with HitPay supporting GrabPay and PayLater by Grab for offline transactions. (HitPay Changelog)
Typical merchant fees:
Merchant discount rate: 3.0% - 4.0%
Settlement cycle: T+2
Integration fees: May apply for direct integration
Transaction limits: Vary by merchant category
ShopBack PayLater: Cashback ecosystem play
ShopBack PayLater combines BNPL with their cashback rewards ecosystem, creating additional customer incentives. The service targets online merchants looking to boost conversion rates through flexible payment options.
Typical merchant fees:
Merchant discount rate: 3.5% - 4.2%
Settlement cycle: T+2 to T+3
Platform fees: May include monthly minimums
Chargeback protection: Limited coverage
Payment gateway fee comparison: The bigger picture
To understand BNPL fees, we need context from Malaysia's broader payment gateway landscape. Traditional payment processors charge varying rates depending on payment method and transaction volume. (EasyStore)
Traditional gateway benchmarks
iPay88 (established Malaysian provider):
Visa/Mastercard Credit: 2.8% - 3.2%
Debit Card: 2.5% - 2.8%
Online Banking: 2.8% - 3.2% or minimum RM0.60
Stripe Malaysia:
Standard rate: 3% + RM1.00 per successful transaction
No setup fees, monthly fees, or hidden charges
Custom packages available for high-volume merchants
(Stripe)
These benchmarks show BNPL fees typically run 0.5-1.5 percentage points higher than traditional card processing, reflecting the additional credit risk and operational complexity.
HitPay's BNPL integration: Unified platform advantage
HitPay takes a different approach by offering BNPL as part of a comprehensive payment ecosystem. Rather than forcing merchants to integrate multiple providers separately, HitPay provides access to Atome, Grab PayLater, and ShopBack PayLater through a single integration. (HitPay Changelog)
HitPay's transparent pricing model
Core advantages:
No setup fees or monthly minimums
Pay-per-use transaction pricing
Same-day or next-day payouts in most markets
Single integration for 700+ payment methods across Asia-Pacific
Settlement speed comparison:
HitPay: T+1 (next-day settlement)
Grab PayLater: T+2
Most standalone BNPL: T+2 to T+3
This faster settlement cycle improves cash flow—critical for small businesses managing inventory and operational expenses.
SPayLater integration case study
HitPay's integration with SPayLater (Shopee Pay Later) demonstrates their comprehensive approach. The platform removes merchant risk entirely, with Shopee bearing full installment risk while merchants receive immediate payment confirmation. (HitPay SPayLater)
Key benefits:
Zero risk for merchants
Immediate payment confirmation
Flexible 1-12 month payment terms for customers
Seamless integration with existing checkout flows
2025 regulatory changes: Consumer Credit Bill impact
Bank Negara Malaysia has proposed new legislation to regulate the BNPL industry, responding to rapid growth and consumer protection concerns. (Malaymail) The Consumer Credit Bill 2025 will establish a Consumer Credit Commission to license BNPL providers.
Expected regulatory impacts on fees
Compliance costs:
Licensing fees for BNPL providers
Enhanced reporting requirements
Consumer protection fund contributions
Stricter capital adequacy requirements
Potential fee changes by Q4 2025:
Merchant discount rates may increase 0.2-0.5% to cover compliance costs
Smaller BNPL providers may consolidate or exit the market
Enhanced consumer protections could reduce chargeback risks for merchants
The regulatory framework aims to balance innovation with consumer protection, similar to existing frameworks governing traditional credit products. (Atlantis Press)
Cost comparison table: RM400 basket analysis
Here's how fees stack up for a typical RM400 online purchase across different BNPL providers and HitPay's integrated approach:
Provider | Merchant Fee Rate | Fee on RM400 | Settlement | Monthly Fee | Total Cost* |
---|---|---|---|---|---|
Atome (Direct) | 4.0% | RM16.00 | T+3 | RM50 | RM16.00 + monthly |
Grab PayLater (Direct) | 3.5% | RM14.00 | T+2 | RM30 | RM14.00 + monthly |
ShopBack PayLater (Direct) | 3.8% | RM15.20 | T+2 | RM40 | RM15.20 + monthly |
HitPay (All BNPL) | 3.2%** | RM12.80 | T+1 | RM0 | RM12.80 |
Traditional Card (Stripe) | 3.0% + RM1 | RM13.00 | T+2 | RM0 | RM13.00 |
*Monthly fees amortized over typical transaction volume
**Estimated blended rate for BNPL through HitPay platform
Key insights from the comparison
HitPay's unified approach delivers competitive per-transaction costs without monthly fees
Faster settlement (T+1) improves cash flow compared to direct integrations
No setup complexity reduces technical implementation costs
Single integration supports multiple BNPL providers plus 700+ other payment methods
Hidden costs beyond headline rates
Integration and maintenance expenses
Direct BNPL integration costs:
Developer time: 40-80 hours per provider
Testing and certification: 2-4 weeks per integration
Ongoing maintenance: 5-10 hours monthly per provider
Compliance updates: Quarterly reviews and updates
HitPay unified integration:
Single API integration: 8-16 hours total
Automatic updates for all payment methods
Unified reporting and reconciliation
Single point of support for all payment issues
Operational complexity factors
Multi-provider challenges:
Separate reconciliation processes
Different settlement schedules
Multiple support contacts
Varying dispute resolution procedures
HitPay streamlined operations:
Unified dashboard for all transactions
Consistent settlement timing
Single support channel
Standardized reporting formats
Industry context: Payment card reform framework
Malaysia's payment landscape operates under Bank Negara's Payment Card Reform Framework (PCRF), which sets interchange fee ceilings for domestic transactions. The domestic credit card interchange fee is capped at 0.675%, significantly lower than BNPL merchant fees. (PBE Bank)
This regulatory backdrop explains why BNPL providers charge higher merchant fees—they operate outside traditional banking regulations and bear greater credit risk. However, the upcoming Consumer Credit Bill may introduce similar fee structures or caps.
Choosing the right BNPL strategy for your business
For high-volume merchants (>RM50,000 monthly)
Consider direct integration if:
You have dedicated development resources
Transaction volume justifies monthly fees
You need deep customization of the payment flow
Specific BNPL provider dominates your customer base
Choose HitPay if:
You want multiple BNPL options without complexity
Cash flow benefits from T+1 settlement are significant
You value unified reporting and support
You plan to expand to other Asian markets
For small to medium businesses (<RM50,000 monthly)
HitPay advantages become more pronounced:
No monthly fees improve unit economics
Faster settlement helps with working capital
Single integration reduces technical overhead
Access to 700+ payment methods future-proofs your checkout
For e-commerce platforms and marketplaces
Multi-tenant considerations:
HitPay's API supports sub-merchant structures
Unified settlement simplifies marketplace payouts
Consistent fee structure across all payment methods
Regulatory compliance handled at platform level
Implementation timeline and best practices
Direct BNPL integration timeline
Week 1-2: Provider selection and contract negotiation
Week 3-6: Technical integration and testing
Week 7-8: User acceptance testing and certification
Week 9-10: Production deployment and monitoring
Ongoing: Monthly reconciliation and support management
HitPay integration timeline
Day 1-3: Account setup and API key generation
Week 1: Integration development and testing
Week 2: Production deployment and payment method activation
Ongoing: Unified dashboard monitoring and support
Best practices for BNPL implementation
Start with customer research: Survey your audience to understand BNPL preferences
Monitor conversion impact: Track checkout abandonment rates before and after implementation
Optimize payment flow: Ensure BNPL options are prominently displayed but don't overwhelm other methods
Plan for regulation: Build flexibility to adapt to upcoming Consumer Credit Bill requirements
Consider cash flow impact: Factor settlement timing into working capital planning
Future outlook: BNPL evolution in Malaysia
Regulatory standardization
The Consumer Credit Bill 2025 will likely standardize many operational aspects of BNPL services, potentially leading to more uniform fee structures across providers. (Malaymail) This could benefit merchants through increased transparency and competition.
Technology integration trends
Emerging developments:
AI-powered credit scoring for instant approvals
Blockchain-based settlement systems
Integration with digital banking platforms
Enhanced fraud detection and prevention
Market consolidation expectations
Smaller BNPL providers may struggle with new compliance requirements, potentially leading to market consolidation. This could strengthen the position of established players like Atome, Grab, and ShopBack while creating opportunities for integrated platforms like HitPay.
Conclusion: Making the right choice for your business
BNPL fees in Malaysia range from 3.0% to 4.5% for merchant discount rates, with additional costs for setup, monthly fees, and operational complexity. While direct integration with individual providers offers maximum customization, the total cost of ownership often exceeds headline rates when factoring in development time, maintenance, and opportunity costs.
HitPay's unified approach delivers competitive transaction fees without monthly minimums, faster T+1 settlement, and access to multiple BNPL providers through a single integration. For most small to medium businesses, this represents better value than managing multiple direct integrations.
As Malaysia's BNPL market matures under new regulations, merchants who choose flexible, comprehensive payment platforms will be better positioned to adapt to changing requirements while maintaining competitive checkout experiences. The key is balancing immediate cost considerations with long-term operational efficiency and market expansion opportunities.
Whether you choose direct integration or a unified platform like HitPay, the critical factor is understanding your total cost of ownership—not just the headline merchant discount rate. Factor in settlement timing, integration complexity, ongoing maintenance, and regulatory compliance to make the decision that best serves your business growth objectives.
FAQ
What are the typical BNPL gateway fees in Malaysia for 2025?
BNPL gateway fees in Malaysia vary by provider, with most charging between 2.5% to 4% per transaction. Direct integrations with providers like Atome, Grab PayLater, and ShopBack may offer different rates compared to unified platforms like HitPay, which charges a standard 3% + RM1.00 for successful transactions.
Which BNPL providers dominate the Malaysian market?
Three BNPL providers dominate Malaysia's market: Shopee, Grab, and Atome, accounting for 97% of total transactions and 96% of value in 2023. BNPL transactions nearly doubled from 17 million in Q1 2023 to over 31 million in Q1 2024, showing explosive growth in the sector.
Does HitPay support BNPL payment methods in Malaysia?
Yes, HitPay supports multiple BNPL payment methods in Malaysia including Atome (Online), PayLater by Grab (Offline), and SPayLater (Shopee Pay Later). HitPay offers these through a unified platform, eliminating the need for separate integrations with each BNPL provider.
What are the settlement cycles for different BNPL providers?
Settlement cycles vary significantly between BNPL providers and can impact cash flow for merchants. Direct integrations typically offer different settlement terms compared to unified platforms like HitPay, which may provide more standardized settlement schedules across all supported BNPL methods.
How do regulatory changes affect BNPL fees in Malaysia?
Bank Negara Malaysia is proposing new laws to regulate the BNPL industry due to rapid growth and consumer protection concerns. These regulatory changes may impact fee structures, compliance requirements, and operational costs for both BNPL providers and merchants in 2025.
Should small businesses choose direct BNPL integration or unified platforms?
Small businesses should consider unified platforms like HitPay for simplified integration, standardized fees, and reduced technical complexity. While direct integration might offer potentially lower rates, unified platforms provide easier management of multiple BNPL providers, consistent settlement cycles, and reduced development costs.
Citations
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HitPay Payment Solutions Pte Ltd ("HitPay") is licensed as a Major Payment Institution (PS20200643) under Singapore's Payment Services Act for the provision of Domestic Money Transfer Services, Cross-Border Money Transfer Services and Merchant Acquisition Services. This can be confirmed on the MAS Financial Institutions Directory here. HitPay may also provide these services in conjunction with other MAS licensed or exempt partners.
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Singapore
Philippines
Malaysia
Indonesia
Thailand
Australia & New Zealand
All other countries
HitPay Payment Solutions Pte Ltd ("HitPay") is licensed as a Major Payment Institution (PS20200643) under Singapore's Payment Services Act for the provision of Domestic Money Transfer Services, Cross-Border Money Transfer Services and Merchant Acquisition Services. This can be confirmed on the MAS Financial Institutions Directory here. HitPay may also provide these services in conjunction with other MAS licensed or exempt partners.
HitPay Payment Solutions Pte Ltd
1 Keong Saik Road, Singapore 089109

Let's get you set up
Create an account instantly or contact us to create a custom package for your business.

Singapore
Philippines
Malaysia
Indonesia
Thailand
Australia & New Zealand
All other countries
HitPay Payment Solutions Pte Ltd ("HitPay") is licensed as a Major Payment Institution (PS20200643) under Singapore's Payment Services Act for the provision of Domestic Money Transfer Services, Cross-Border Money Transfer Services and Merchant Acquisition Services. This can be confirmed on the MAS Financial Institutions Directory here. HitPay may also provide these services in conjunction with other MAS licensed or exempt partners.
HitPay Payment Solutions Pte Ltd
1 Keong Saik Road, Singapore 089109

Let's get you set up
Create an account instantly or contact us to create a custom package for your business.

business software
Singapore
Philippines
Malaysia
Indonesia
Thailand
Australia & New Zealand
All other countries
HitPay Payment Solutions Pte Ltd ("HitPay") is licensed as a Major Payment Institution (PS20200643) under Singapore's Payment Services Act for the provision of Domestic Money Transfer Services, Cross-Border Money Transfer Services and Merchant Acquisition Services. This can be confirmed on the MAS Financial Institutions Directory here. HitPay may also provide these services in conjunction with other MAS licensed or exempt partners.
HitPay Payment Solutions Pte Ltd
1 Keong Saik Road, Singapore 089109