Malaysia Merchant Acquiring License (MAS) – Regulatory Guide & Licensing Support by Zitadelle AG

Malaysia Merchant Acquiring License (MAS) – Regulatory Guide & Licensing Support by Zitadelle AG

Zitadelle AG assists fintech, payment, and financial services firms in securing the Merchant Acquiring License (MAS) issued by Bank Negara Malaysia (BNM). This license is crucial for entities intending to provide merchant acquiring services—which involves accepting and processing payment transactions on behalf of merchants.

What Is the Merchant Acquiring License in Malaysia?

A Merchant Acquiring License authorizes an institution to:

Enable retailers/merchants to accept payment instruments (cards, QR codes, online payments, etc.)
Establish payment infrastructure (e.g., point-of-sale terminals, payment gateways)
Handle the settlement of funds between the buyer and merchant

This license is governed under the Financial Services Act 2013 and is subject to supervision by Bank Negara Malaysia (BNM).

Who Needs the MAS License?

Entities planning to:

Operate a payment gateway
Offer POS terminal services
Process card payments (Visa, Mastercard, MyDebit, etc.)
Provide QR code payment acceptance or e-wallet integration

This applies to both Malaysian and foreign-controlled companies entering the ASEAN region’s dynamic payment market.

Key Requirements for Merchant Acquiring License (BNM)

Below is an overview of the main requirements as per BNM’s Policy Document on Merchant Acquiring Services (April 2023) and the official MAS License Application Form:

1. Corporate and Regulatory Requirements

Must be a locally incorporated company in Malaysia
Submit detailed business plan and corporate governance framework
Strong AML/CFT controls and compliance systems
Policies on merchant onboarding, transaction monitoring, fraud prevention

2. Capital Requirements

While BNM has not published a fixed minimum capital, sufficient paid-up capital and financial resources must be demonstrated to ensure operational resilience and settlement obligations.

💡 Zitadelle AG helps applicants justify their capital adequacy based on expected transaction volumes and risk profile.

3. Management and Staffing

Directors and senior management must be “fit and proper” (clean background, financial integrity, etc.)
Clearly defined organizational structure
Adequate internal control systems, audit, and risk management

4. Technology and Infrastructure

Secure and scalable payment systems
Ability to ensure interoperability with national payment rails (e.g., DuitNow QR)
Strong data protection and cybersecurity measures

5. Merchant Management Procedures

Formal procedures for merchant onboarding, risk classification, monitoring
Policies for suspending/terminating high-risk merchants
Merchant agreements must contain clear disclosure obligations

How Zitadelle AG Supports Your MAS License Application

With extensive experience in payment and fintech licensing, Zitadelle AG provides a turnkey solution to obtain the Merchant Acquiring License in Malaysia, including:

Our Services:

Full review and preparation of the BNM application pack
Drafting of business plan, risk framework, and compliance policies
Assistance with company incorporation and local representation in Malaysia
Advisory on IT infrastructure and payment processing models
Ongoing regulatory liaison and post-licensing support

Why Malaysia?

Malaysia is rapidly evolving into a regional fintech hub with robust financial infrastructure and a high rate of digital payment adoption. The Merchant Acquiring License offers a regulated gateway to tap into: