Market Size
Malaysia presents a significant opportunity in the micro-business payment space:1.1M MSMEs
Total Malaysian micro, small, and medium enterprises
767K Micro-Businesses
Primary target market (fewer than 5 employees)
53% Card Acceptance
Current penetration rate - huge growth potential
63% Mobile Wallet Usage
Malaysians are digitally ready for cashless payments
Market Breakdown
Enterprise Size Distribution
| Enterprise Size | Count | Percentage | Addressable Market |
|---|---|---|---|
| Micro (under RM250k revenue) | ~770,000 | 70% | 300,000-500,000 |
| Small (RM250k-20M) | ~310,000 | 29% | 100,000 |
| Total Opportunity | ~1.1M | 100% | 400,000-600,000 |
Even 10% penetration of eligible merchants (~50,000 merchants) would represent
a massive business opportunity
Payment Landscape
Current Payment Methods
Malaysian consumers show strong preference for card payments:- 36.9% prefer card payments
- 2.2% prefer QR code payments
- Digital wallet adoption at 63% (highest globally)
Transaction Fees Comparison
DuitNow QR: 0.25-0.5% MDR (very low but limited functionality)
Credit/Debit Cards: 2-3% MDR (higher cost but more features)
Barriers to Adoption
Research shows key barriers preventing SME cashless adoption:High Transaction Fees (37%)
High Transaction Fees (37%)
Primary concern - businesses want lower processing costs
Complex Onboarding (25%)
Complex Onboarding (25%)
Tedious paperwork and lengthy approval processes deter adoption
High Equipment Costs
High Equipment Costs
Traditional POS systems require significant upfront investment
Poor Connectivity/Access (25%)
Poor Connectivity/Access (25%)
Technical challenges and unreliable service concerns
COVID-19 Impact
The pandemic accelerated digital payment adoption:- 3 million new mobile banking users added in 2020
- Rapid adoption of e-wallets and contactless payments
- Shift from cash to digital across all business types
- Government push for 50% digital transaction target
Competitive Landscape
Market Gap
HitPay (leading competitor) serves only “thousands” of merchants vs
767,000 potential micro-businesses
Competition Analysis
- HitPay: Singapore-based, limited Malaysian presence
- Traditional Banks: Complex, expensive solutions
- Local Players: Limited tech capabilities
- Robin Opportunity: Modern, mobile-first approach with local focus
Revenue Projections
Conservative Estimates
Assuming successful market penetration:- Target: 50,000 merchants (10% of addressable market)
- Average Monthly Volume: RM10,000 per merchant
- Transaction Fee: 2.5%
- Monthly Revenue per Merchant: RM250
- Total Monthly Revenue: RM12.5M (~US$2.5M)
With low customer acquisition costs via digital channels, payback period could
be 1-2 months with strong LTV
Government Support
Malaysia’s regulatory environment supports fintech innovation:- Bank Negara Digital Roadmap: 50% digital transaction target
- E-wallet incentives and government backing
- Payment Services Act: Clear regulatory framework
- Fintech sandbox for innovation testing