FPX, the Online Payment Method for Malaysians
Financial Process Exchange (FPX) is an online payment gateway for Malaysians. It facilitates interbank transfer of funds from the buyer to the seller. The payment gateway is spearheaded by Bank Negara Malaysia and is managed by MEPS.
How does FPX works?
FPX can be used for bill payments and purchases of goods and services. There are two types of FPX services: Payment model and Collection model.
Payment model is to be used for B2C or B2B to support real-time payments for e-commerce business. Buyer required to have a Internet banking account with one of the participating FPX member banks.
Collection model is designed to function as an alternative payment method for non-Internet based business. Collection Model is ideal for bulk collection such as premium collection for insurance or unit trusts.
Here I only focus on the online payment method, FPX Payment model.
FPX Payment model
- Buyer checkout on merchant’s website then choose a preferred bank for debiting purposes.
- Buyer will be redirected to the bank’s Internet banking website.
- Buyer is required to login his/her account and approve the payment.
- Upon approval, the purchase value(money) will be credited to the merchant’s account.
- Both parties will receive a notification confirming the transaction.
Currently, there are 5 participating banks support FPX payment model:
- Bank Islam
- Bumiputra-Commerce
- Hong Leong Bank
- MayBank
- Public Bank
My two cents
The FPX Payment model works like PayPal payment processing system, but FPX is limited to Malaysians only.
In order to apply as FPX merchant, you need to be a local registered company. Currently, there are only a few of FPX merchants. I believe it is not easy and not cheap to be one. Please refer to your bank for details on FPX.
References:
- MEPS : Products & Services – Financial Process Exchange (FPX)
- MEPS : Frequently Asked Questions : Consumer – MEPS FPX
- Public Bank Berhad
- Hong Leong Bank Promotion
[Thanks, Yvonne Foong]
