Stripe vs iPay88: Which is right for the Malaysian market?

The choice of Stripe or iPay88 in the Malaysian market needs to be evaluated holistically based on the type of business, target customers and technology requirements. Below is the key comparative analysis:

1. Localisation adaptability

• iPay88

  • ✅ absolute advantage: Designed specifically for Southeast Asia, it supports all major Malaysian payment methods (FPX netbank transfer, Boost, GrabPay, offline convenience store cash recharge, etc.).
  • ✅ Compliance: Holds a Bank Negara Malaysia (BNM) licence and has a well-established local acquiring network.
  • ❌ Weak international payments: only suitable for Malaysia-based operations.

• Stripe

  • 🌍 Global coverage: Supports international credit cards (Visa/Mastercard/Amex) and Apple Pay, etc., suitable for cross-border transactions.
  • ❗️ local limitations: native payment methods such as FPX are not supported (unless integrated through a third-party plugin).

2. Cost structure

• iPay88
  Rates are typically 1.5%-3% (depending on payment method) with no annual fee but may have an initial setup fee.

• Stripe
  Standard rate 2.9% + RM1/stroke (credit card), no setup fee but higher currency conversion cost.

💡 iPay88 is cheaper if the customer is mainly local and using FPX (rate around RM1/stroke), or Stripe if relying on international users.

3. API and development flexibility

• Stripe wins:
  Provide better developer documentation, subscription billing system and sandbox testing environment.
• iPay88 requires a bank interface and is slightly more technically complex.

4. Suggested scenarios for application

▶️ final decision:

• 🇲🇾 Focus on the Malaysian market? → Choose iPay88 to reduce costs and increase payment success rates.
• 🌏 Serving overseas at the same time? → Supplement local payment gateways (e.g. Billplz) with Stripe+.

5. Additional key considerations (continued)

a) Payment success rate and user experience

• iPay88

  • ✅ Local user habits: Malaysians are more familiar with FPX and e-wallets (e.g. Touch 'n Go) and have a higher payment success rate.
  • ❌ cross-border restriction: International credit card rejection rates may be higher (due to more conservative local risk control strategies).

• Stripe

  • 🌍 Intelligent Route Optimisation: Automatically selects the optimal bank channel and reduces the international card rejection rate.
  • ❗️ needs additional adaptation: failure to integrate local payment methods may result in the loss of some local users.

📊 data reference: The average payment failure rate for e-commerce in Malaysia is 15%-25%, which can be reduced to less than 5% with iPay88's FPX.

b) Settlement cycle and ease of withdrawal

💡 For cash flow sensitivity, iPay88 is more suitable; for multi-currency management, choose Stripe.

c) Industry Regulation and Risk Control

• 🇲🇾BNM compliance requirements:
  All gateways are subject to the Financial Services Act 2013 and iPay88 is inbuilt:
  • ⚠️ automatically blocks high-risk industries (e.g., gambling, cryptocurrencies).
  • 📝 Simplify the merchant qualification process.
• Stripe's challenge:
  Additional compliance documents may be required where the business is registered outside Malaysia.

▶️ advanced combination programme recommendation

1. [Highly converted version] iPay88 (FPX/e-wallet) + Stripe (international card)
   → Coverage of omni-channel users, but with dual-system development costs.

2. [Low-cost version] iPay88 Single Use + Third-party plug-insComplementary Alipay/WeChat Payment
   → Suitable for local SMEs with limited budgets.

3. [SaaS-specific] Stripe subscription feature + Recurly localised billing
   → Automate regular debits and avoid the risk of exchange rate fluctuations.

🚨 Common Pitfalls Reminder

• ✖️ only uses Stripe without informing customers that "FPX is not supported" → leading to a spike in shopping cart abandonment.
• ✖️ ignores iPay88's annual fee terms → small businesses may be locked into long-term contracts.
• ✖️ underestimates the risk of fraud → it is recommended to enable 3D Secure authentication no matter which one you choose.

If you need to measure ROI for a specific case, you can provide your industry and monthly transaction volume for further analysis.