Malaysian payments provider MOLPay has launched an online payment service targeted at micro businesses, which typically prefer cash-on-delivery or interbank transfer methods for online transactions to avoid fees.
In a statement Thursday, MOLPay CEO Eng Sheng Guan said the new service MOLPay-FPX Plan allows businesses with online stores or e-commerce Web sites to accept payment from bank accounts of customers whose banks participate in the FPX (Financial Process Exchange).
FPX is an online payment option by Malaysian Electronic Clearing (MyClear) which allows customers to directly debit their banking accounts without the need for credit cards. Currently, FPX-participating banks are Bank Islam, CIMB Bank, Hong Leong Bank, Maybank, Public Bank and RHB Bank.
In the statement, Eng said: "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," he said.
The new service, MOLPay-FPX Plan, charges a 299 ringgit (US$98.5) joining fee with no charge for the first year's maintenance fee. Maintenance fee for subsequent years is 99 ringgit (US$32.6), or waived when the minimum requirement is met. Each transaction costs 2 ringgit (US$0.66). Settlement is paid weekly at a fee of 2 ringgit per settlement.
In contrast, the higher-tier, "Lite Plan" which accepts credit card payment, costs 499 ringgit (US$164.47) to join, with the same maintenance fees as FPX Plan. Each transaction is charged at 3.8 percent, or a minimum of 0.60 ringgit depending on which is higher. Settlement is also paid weekly at a fee of 2 ringgit per settlement.
MOLPay is part of the MOL Global Group, one of the biggest Internet companies in Southeast Asia.