Introduction

Choosing the right mobile card reader can make or break your small business's profitability in Malaysia. With upfront device costs ranging from RM310 to RM550 and hidden monthly fees lurking in the fine print, many merchants end up paying far more than expected. (HitPay Card Reader Guide)

The Malaysian payments landscape has evolved dramatically, with Buy Now, Pay Later (BNPL) transactions nearly doubling from 17 million in Q1 2023 to over 31 million in Q1 2024. (HitPay BNPL Gateway Fees) This surge in digital payment adoption means your card reader choice directly impacts your ability to capture revenue from tech-savvy customers who expect seamless payment experiences.

This comprehensive comparison breaks down the real costs of three leading mobile card readers: HitPay's WisePad 3 (RM310), iPay88's Plug-n-Pay solution, and CIMB's Plug-n-Pay device (RM550). We'll calculate actual monthly expenses across different sales volumes, examine payout speeds, and reveal which hidden fees could drain your profits. By the end, you'll have a clear cost-per-ringgit framework to choose the most profitable option for your stall, café, or pop-up business.

The Malaysian mobile payments revolution: Why card readers matter more than ever

Malaysia's digital payment ecosystem has reached a tipping point. Three providers—Shopee, Grab, and Atome—now dominate 97% of total BNPL transactions and 96% of value in the market. (HitPay BNPL Gateway Fees) This concentration means customers increasingly expect businesses to accept not just traditional cards, but also e-wallets, QR codes, and BNPL options.

For small businesses, this shift presents both opportunity and complexity. The right card reader doesn't just process Visa and Mastercard—it becomes your gateway to Malaysia's diverse payment methods including DuitNow, FPX, GrabPay, Touch 'n Go, Boost, ShopeePay, and Maybank QR. (HitPay Payment Gateway)

However, payment gateways in Malaysia take a percentage of your total revenue in the form of transaction fees, and these fees are often based on the payment method chosen by your customers. (Payment Gateway Comparison Indonesia) This makes choosing the right provider crucial for maintaining healthy profit margins.

Device costs breakdown: Upfront investment analysis

HitPay WisePad 3: RM310

The BBPOS WisePad 3 is a versatile card reader compatible with both iOS and Android devices, designed for secure card transactions with enhanced security features. (HitPay WisePad 3 Documentation) At RM310, it represents the middle ground in terms of upfront investment.

Key specifications:

• Bluetooth connectivity to mobile devices

• EMV chip and contactless payment support

• Battery life: Up to 8 hours continuous use

• Setup: Requires HitPay app with Bluetooth and location services enabled

• Security: PCI-DSS compliant with end-to-end encryption

CIMB Plug-n-Pay: RM550

CIMB's offering comes at a premium price point of RM550, positioning itself as the most expensive option in our comparison. This higher cost typically reflects additional features or bundled services, though the exact specifications vary based on the merchant agreement.

iPay88 Plug-n-Pay: Pricing varies

iPay88's device pricing structure isn't publicly disclosed and typically requires direct consultation with their sales team. This lack of transparency can make budgeting challenging for small businesses seeking predictable costs.

Transaction fees: The real cost of processing payments

HitPay's transparent pricing model

HitPay operates on a pay-per-use model with no setup or monthly fees, making it particularly attractive for businesses with variable sales volumes. (HitPay Card Reader Guide) The platform supports extensive local and global payment coverage, allowing businesses to accept payments through over 50 payment methods and more than 150 currencies. (HitPay Payment Gateway)

HitPay Malaysia transaction fees:

• Visa/Mastercard: 2.9% + RM0.50 per transaction

• DuitNow QR: 0.9%

• FPX: 1.5%

• GrabPay: 2.3%

• Touch 'n Go: 2.3%

• Boost: 2.3%

• ShopeePay: 2.3%

CIMB Plug-n-Pay fees

CIMB's merchant rates vary based on business type and monthly volume, typically ranging from 1.8% to 2.5% for domestic cards. However, these rates often come with additional monthly service fees and minimum transaction requirements that can significantly impact small businesses.

iPay88 fee structure

iPay88's pricing follows a tiered model based on monthly processing volume, with rates generally starting around 2.8% for standard merchants. Additional fees may apply for specific payment methods and international transactions.

Real-world cost calculations: RM5k, RM20k, and RM50k monthly scenarios

Scenario 1: Small stall (RM5,000 monthly sales)

HitPay WisePad 3:

• Device cost: RM310 (one-time)

• Monthly fees: RM0

• Transaction fees (assuming 70% cards, 30% e-wallets): RM127.50

• Total first-year cost: RM1,840

• Ongoing monthly cost: RM127.50

CIMB Plug-n-Pay:

• Device cost: RM550 (one-time)

• Estimated monthly service fee: RM30

• Transaction fees (2.2% average): RM110

• Total first-year cost: RM2,230

• Ongoing monthly cost: RM140

iPay88 Plug-n-Pay:

• Device cost: RM400 (estimated)

• Monthly service fee: RM25 (estimated)

• Transaction fees (2.8% average): RM140

• Total first-year cost: RM2,380

• Ongoing monthly cost: RM165

Scenario 2: Busy café (RM20,000 monthly sales)

HitPay WisePad 3:

• Device cost: RM310 (one-time)

• Monthly fees: RM0

• Transaction fees: RM510

• Total first-year cost: RM6,430

• Ongoing monthly cost: RM510

CIMB Plug-n-Pay:

• Device cost: RM550 (one-time)

• Monthly service fee: RM50

• Transaction fees (2.0% volume discount): RM400

• Total first-year cost: RM5,950

• Ongoing monthly cost: RM450

iPay88 Plug-n-Pay:

• Device cost: RM400 (estimated)

• Monthly service fee: RM40

• Transaction fees (2.5% volume discount): RM500

• Total first-year cost: RM6,880

• Ongoing monthly cost: RM540

Scenario 3: High-volume retailer (RM50,000 monthly sales)

HitPay WisePad 3:

• Device cost: RM310 (one-time)

• Monthly fees: RM0

• Transaction fees: RM1,275

• Total first-year cost: RM15,610

• Ongoing monthly cost: RM1,275

CIMB Plug-n-Pay:

• Device cost: RM550 (one-time)

• Monthly service fee: RM80

• Transaction fees (1.8% enterprise rate): RM900

• Total first-year cost: RM12,310

• Ongoing monthly cost: RM980

iPay88 Plug-n-Pay:

• Device cost: RM400 (estimated)

• Monthly service fee: RM60

• Transaction fees (2.2% enterprise rate): RM1,100

• Total first-year cost: RM14,320

• Ongoing monthly cost: RM1,160

Payment method coverage: Beyond basic card processing

HitPay's comprehensive local payment support

HitPay has expanded support for additional payment methods in Malaysia, including Touch 'n Go (Offline), GrabPay & PayLater by Grab (Offline), and Atome (Online). (HitPay Changelog) This broad coverage is crucial given that Grab's BNPL service leverages its massive e-wallet user base in Malaysia. (HitPay BNPL Gateway Fees)

The platform supports cross-border QR acceptance, enabling Malaysian businesses to serve international customers using their home country payment methods. This feature becomes increasingly valuable as tourism rebounds and cross-border e-commerce grows.

CIMB's banking-centric approach

CIMB Plug-n-Pay focuses primarily on traditional card processing with limited e-wallet integration. While this simplicity appeals to some merchants, it may limit revenue opportunities from customers who prefer digital payment methods.

iPay88's established network

iPay88 offers moderate coverage of local payment methods but lacks the comprehensive cross-border QR support that HitPay provides. Their established presence in Malaysia means reliable processing for standard payment types.

Payout speed comparison: Cash flow impact

HitPay: Same-day and next-day payouts

HitPay offers same-day or next-day payouts in most markets, providing crucial cash flow advantages for small businesses. (HitPay Card Reader Guide) This speed is particularly important for businesses with tight working capital requirements.

CIMB: T+2 to T+3 settlement

CIMB typically processes settlements within 2-3 business days, which is standard for traditional banking institutions but slower than modern fintech alternatives.

iPay88: T+1 to T+2 settlement

iPay88 generally offers next-day to 2-day settlement, positioning them between HitPay's speed and CIMB's traditional timeline.

Hidden fees and contract terms: What merchants often miss

Monthly service charges

Many merchants overlook monthly service fees when comparing card readers. While HitPay operates on a pure pay-per-use model with no monthly fees, both CIMB and iPay88 typically charge monthly service fees that can range from RM25 to RM80 depending on your processing volume and contract terms.

Minimum processing requirements

Some providers impose minimum monthly processing volumes, charging penalty fees if you don't meet these thresholds. This can be particularly problematic for seasonal businesses or those with variable sales patterns.

Early termination fees

Contract terms often include early termination penalties that can cost hundreds of ringgit if you need to switch providers. HitPay's month-to-month approach eliminates this risk.

International transaction surcharges

Processing international cards often incurs additional fees ranging from 0.5% to 1.5% above standard rates. These charges can significantly impact businesses serving tourists or international customers.

BNPL integration: Capturing the growing market

The BNPL market in Malaysia has exploded, with Atome operating across Southeast Asia and establishing itself as a major player in Malaysia's BNPL space. (HitPay BNPL Gateway Fees) The merchant discount rate for Atome is 3.5% - 4.5% with a settlement cycle of T+2 to T+3. (HitPay BNPL Gateway Fees)

HitPay's integration with major BNPL providers gives merchants access to this growing customer segment without additional hardware or complex integrations. This capability can drive higher average order values and attract younger demographics who prefer flexible payment options.

Cross-border QR acceptance: Serving international customers

Malaysia's position as a regional business hub means many merchants serve customers from Singapore, Thailand, Indonesia, and other ASEAN countries. HitPay's cross-border QR support allows customers to pay using their home country's preferred QR payment methods, eliminating the friction of currency conversion or unfamiliar payment apps.

This feature becomes particularly valuable for businesses in tourist areas, airports, or border regions where international customers represent a significant portion of sales.

Cost-per-ringgit analysis template

To help you make an informed decision, here's a simple framework to calculate your actual costs:

Step 1: Estimate your monthly sales volume

• Low volume: Under RM10,000/month

• Medium volume: RM10,000 - RM30,000/month

• High volume: Over RM30,000/month

Step 2: Calculate payment method mix

• Credit/debit cards: ____%

• E-wallets (GrabPay, Touch 'n Go, etc.): ____%

• QR codes: ____%

• BNPL: ____%

Step 3: Apply provider rates

Monthly cost formula:
(Sales Volume × Payment Method Rate) + Monthly Service Fee + Device Cost/12

Step 4: Factor in cash flow impact

• Same-day payout: No adjustment

• Next-day payout: Minimal impact

• 2-3 day payout: Consider opportunity cost of delayed funds

Security and compliance considerations

All three providers offer PCI-DSS compliant processing, but implementation varies. The WisePad 3 is designed for secure card transactions and offers enhanced security features with end-to-end encryption. (HitPay WisePad 3 Documentation)

HitPay's platform is powered by enterprise-grade security and encrypted processing, providing additional fraud protection through advanced monitoring systems. This security infrastructure is particularly important as payment fraud attempts increase across the region.

Integration and ease of use

HitPay's no-code approach

HitPay offers both no-code solutions for quick setup and developer-friendly APIs for custom integrations. The WisePad 3 can be connected to a mobile device via the HitPay app, requiring only Bluetooth and location services to be enabled. (HitPay WisePad 3 Documentation)

The platform includes plugins for popular e-commerce platforms like Shopify, WooCommerce, and Wix, plus accounting integrations with Xero and other business software.

CIMB's banking integration

CIMB's solution integrates directly with their banking services, which can be advantageous for existing CIMB business account holders but may limit flexibility for merchants using other banks.

iPay88's established ecosystem

iPay88 offers solid integration options with major e-commerce platforms and has established relationships with many Malaysian businesses, providing reliable technical support.

Customer support and onboarding

HitPay's instant onboarding

HitPay offers quick verification and instant onboarding with real-time transaction alerts and unified reporting across online and offline channels. (HitPay Card Reader Guide) This speed-to-market advantage helps businesses start accepting payments within hours rather than days or weeks.

Traditional provider timelines

Both CIMB and iPay88 typically require 3-7 business days for account approval and device setup, which can delay business launch or expansion plans.

Making the right choice for your business

Choose HitPay WisePad 3 if:

• You want transparent, pay-per-use pricing with no monthly fees

• Your sales volume varies significantly month-to-month

• You need comprehensive local payment method support

• Fast payouts are crucial for your cash flow

• You serve international customers who prefer their home country payment methods

• You want to integrate BNPL options without additional complexity

Choose CIMB Plug-n-Pay if:

• You're an existing CIMB business banking customer

• You process high volumes (RM50,000+ monthly) and can negotiate better rates

• You primarily accept traditional card payments

• You prefer dealing with a traditional bank for all financial services

Choose iPay88 Plug-n-Pay if:

• You have an existing relationship with iPay88

• You need their specific e-commerce platform integrations

• You're comfortable with their pricing structure and contract terms

• You don't require extensive local payment method coverage

The future of mobile payments in Malaysia

Malaysia's digital payment landscape continues evolving rapidly. Recent developments include Grab charging a 1% fee on credit card reloads to its GrabPay Wallet starting from September 11, 2024, though reloads via other payment methods including bank transfers, debit cards, and GX Bank remain free. (The Star)

These changes highlight the importance of choosing a payment provider that adapts quickly to market shifts and maintains competitive pricing as the ecosystem evolves.

Conclusion: HitPay's transparent advantage

After analyzing upfront costs, transaction fees, payout speeds, and hidden charges, HitPay's WisePad 3 emerges as the most cost-effective solution for most Malaysian small businesses. The combination of transparent pay-per-use pricing, comprehensive payment method support, and fast payouts creates a compelling value proposition. (HitPay BNPL Gateway Fees)

For businesses processing under RM20,000 monthly, HitPay's no-monthly-fee model provides significant savings compared to traditional providers. Even at higher volumes, the platform's extensive local payment method coverage and cross-border QR acceptance can drive additional revenue that offsets any rate differences.

The key is matching your provider choice to your specific business needs. Use the cost-per-ringgit template provided to calculate your actual expenses across different scenarios, and remember that the cheapest upfront option isn't always the most profitable long-term choice.

As Malaysia's digital payment ecosystem continues expanding, choosing a provider like HitPay that embraces innovation while maintaining transparent pricing positions your business for sustainable growth in an increasingly cashless economy.

FAQ

What are the upfront costs for mobile card readers in Malaysia?

The HitPay WisePad 3 costs RM310, making it the most affordable option. CIMB Plug-n-Pay is priced at RM550, while iPay88 offers various pricing tiers. These upfront costs are just the beginning - transaction fees and potential monthly charges significantly impact your total cost of ownership.

Which mobile card reader has the lowest transaction fees for Malaysian businesses?

Transaction fees vary by payment method and provider. HitPay offers competitive rates with no monthly fees, while traditional providers like CIMB and iPay88 may have different fee structures. The best choice depends on your monthly transaction volume and preferred payment methods like credit cards, Touch 'n Go, and GrabPay.

Does HitPay WisePad 3 support Malaysian payment methods like Touch 'n Go and GrabPay?

Yes, HitPay has expanded support for Malaysian payment methods including Touch 'n Go (Offline), GrabPay & PayLater by Grab (Offline), and Atome (Online). The WisePad 3 is compatible with both iOS and Android devices and connects via Bluetooth through the HitPay app with enhanced security features.

Are there hidden monthly fees with mobile card readers in Malaysia?

Many providers have hidden monthly fees that can significantly increase your costs. HitPay offers card readers with no monthly fees, unlike some traditional providers. Always check the fine print for monthly service charges, gateway fees, and maintenance costs that aren't included in the advertised transaction rates.

How do I calculate the real cost of different mobile card readers for my business?

Calculate total cost by adding upfront device cost, monthly fees (if any), and transaction fees multiplied by your expected monthly volume. For example, if you process RM10,000 monthly with 2.5% fees, that's RM250 in transaction costs alone. Factor in device cost amortization and any monthly charges to get your true cost per month.

Can I pass transaction fees to customers with Malaysian mobile card readers?

Some payment gateways allow you to pass on or share transaction fees with customers to reduce your costs. This practice varies by provider and payment method. Check with your chosen provider about fee-sharing options, as this can significantly impact your profitability, especially for high-volume businesses.

Citations

1. https://blog.hitpayapp.com/perbandingan-payment-gateway-indonesia/

2. https://docs.hitpayapp.com/pos/readers/wisepad3

3. https://hitpayapp.com/blog/2025-bnpl-gateway-fees-in-malaysia-atome-vs-grab-paylater-vs-shopback-(and-what-hitpay-actually-charges)

4. https://hitpayapp.com/blog/2025-guide-to-card-readers-with-no-monthly-fees-in-new-zealand-(hitpay-vs-square-zettle-more)

5. https://hitpayapp.com/changelog/malaysia-touch-n-go-(offline)-grabpay-paylater-by-grab-(offline)-atome-(online)-philippines-gcash-(offline)

6. https://www.hitpayapp.com/paymentgateway

7. https://www.thestar.com.my/news/nation/2024/08/23/grab-to-charge-1-fee-on-credit-card-reloads-from-sept-11