Four practical payment methods Malaysian businesses can use to pay suppliers, shipping partners, freight forwarders and local teams in China
Key takeaways
- Malaysian businesses have four main options for paying China-based suppliers, staff and partners: international payment providers, international wire transfers, TNG eWallet and Alipay
- Each method has different fee structures, settlement times, transaction limits and documentation requirements
- The right method depends on the payment type, size and frequency, and whether the recipient is a business, individual or marketplace supplier
- An international payment provider like WorldFirst lets Malaysian businesses send CNH payments to Chinese suppliers at competitive exchange rates, lock in rates with Firm Orders, and receive and hold USD or MYR from international customers in the same account
Malaysian businesses working with China often need to make payments in several directions: to wholesale suppliers for inventory, to freight forwarders for shipping, to contractors for ongoing work, and sometimes to platforms for marketing or software services. Each payment type involves different amounts, frequencies and recipient types.
The payment method chosen affects both the settlement time and the final amount received after conversion. Malaysian businesses typically have four main options, each with different fee structures, speed and transaction limits suited to different types of payments.
Take a look at how each method works and which one fits different payment scenarios.
1. International payment provider
International payment providers specialise in cross-border payments and typically offer better exchange rates and faster settlement than standard bank wire transfers. They let Malaysian businesses send CNH payments to Chinese suppliers, convert between supported currencies at competitive rates, and receive international customer payments in a single business account.
For a Malaysian business sourcing inventory from China and selling to overseas customers, an international payment provider handles both sides of the operation: paying suppliers in China on one side, and receiving USD payments from international customers on the other.
Here’s how international payment providers can help:
- Regular supplier payments in CNH to Chinese factories and wholesalers
- Businesses sourcing from China and selling to international markets like the US
- Paying freight forwarders and third-party logistics partners in USD
- Settling invoices in CNH on 1688.com
How WorldFirst supports Malaysian businesses
WorldFirst is an international payments provider for cross-border businesses. The World Account is a multi-currency business account that supports both the supplier payment side and the international customer collection side of running a Malaysia-to-China-to-world sourcing operation.
- Send CNH payments to Chinese suppliers, freight forwarders and contractors at competitive exchange rates
- Place Firm Orders for USD, MYR and CNH, which trigger currency conversion when a set target rate is reached
- Receive USD payments from international customers through a USD local receiving account, plus an MYR account for domestic activity
- Hold USD and MYR balances in the account for use in onward payments or conversion when the timing works
- Convert between USD, MYR and CNH at competitive rates
- Pay 1688.com suppliers in CNH directly from your World Account through World Pay, the authorised international payment provider for 1688.com, without needing a Mainland China bank account
- Send CNY payments into China through supported payee account types (currently limited to Alipay CN accounts)
- Collect payouts from 130+ marketplaces and payment gateways in USD or MYR
- Same-day or next-day transfers on supported corridors (cut-off times apply)
- Fully online setup with no branch visits required
2. International bank wire transfer
International wire transfers remain the most widely used method for formal, high-value payments to China. The payment is sent through the SWIFT network from your Malaysian bank to the recipient’s Chinese bank, usually passing through one or more intermediary (correspondent) banks on the way.
Here’s where international bank wire transfers can help:
- Large one-off payments, such as a bulk inventory order or capital transfer
- Formal transactions where the recipient’s bank requires a wire for documentation purposes
- Payments to countries or currencies not well supported by local payment rails
What to watch for when it comes to international wire transfer
- Processing time typically runs 2 to 5 business days, sometimes longer for less common currency corridors
- Sending bank fees and intermediary bank deductions typically reduce the amount the recipient receives below the invoiced total. FX markup is also embedded in the bank’s exchange rate rather than listed as a separate line item
- Intermediary bank deductions can take further amounts from the payment en route
- FX markup is embedded in the bank’s exchange rate, often 2% to 5% above the mid-market rate
3. TNG eWallet
Touch ‘n Go eWallet now supports payments at Chinese merchants through its Alipay+ integration. Malaysian businesses and travellers can use their TNG eWallet in China at over 10 million participating merchants, scanning QR codes the same way they would in Malaysia.
How it works in China:
- Scan to pay: Open the TNG eWallet, tap the scan option, and point your camera at the merchant’s Alipay QR code. Enter the amount and confirm.
- Be scanned: For some merchants, you can present your own QR code and let the cashier scan it.
For larger purchases, ATM withdrawals or merchants that don’t accept QR payments, the linked Visa card works wherever Visa is accepted. Competitive FX rates apply with no foreign transaction fees on card purchases.
TNG eWallet works well for business travellers but isn’t designed for high-volume supplier payments. Transaction limits are set at consumer scale, and the FX conversion happens per payment rather than on a held CNH balance.
4. Alipay
Alipay is one of China’s dominant mobile payment platforms, with more than one billion users. For Malaysian businesses with ongoing activity in China, including trips, consumer-level purchases from suppliers, or payments on Chinese e-commerce platforms like Taobao, 1688 and Tmall, Alipay offers a direct way to pay.
Here’s how to use Alipay in Malaysia and in China
- Download the Alipay app and select the international user option
- Verify your identity with your Malaysian passport and a facial recognition step
- Link a funding source. This can be an international debit or credit card, a Chinese bank account if available, or a multi-currency account like the World Account
Alipay allows verified foreign users single transactions of up to USD 5,000 and an annual spending limit of USD 50,000. These limits were raised in 2024 to make Alipay more usable for international visitors to China.
For businesses paying suppliers at wholesale volumes, the per-transaction and annual limits can become a constraint. Linking Alipay to a multi-currency account as the funding source helps reduce the FX cost on each payment
Which method to choose to make payments to China from Malaysia
Each method has a clear use case:
- Multi-currency accounts work for ongoing supplier payments, freight forwarder settlements and payroll to Chinese contractors or team members. Low FX costs on recurring payments, same-day or next-day settlement on supported corridors.
- International wire transfers suit high-value, formal transactions where the recipient’s bank requires a wire for compliance or documentation purposes.
- TNG eWallet is practical for business travel to China and small-value on-the-ground payments.
- Alipay works for consumer-level purchases, Chinese e-commerce platforms, and smaller supplier payments where the recipient prefers Alipay as the payment method.
FAQs
1. How long does it take to send money from Malaysia to China?
Timing depends on the method. International wire transfers typically take 2 to 5 business days. Multi-currency accounts and payment providers using local payment rails can settle within the same day or next business day on supported corridors (cut-off times apply). TNG eWallet and Alipay payments to merchants are near-instant.
2. Do I need a Chinese bank account to pay suppliers in China?
No. Malaysian businesses can pay Chinese suppliers through international wire transfers, multi-currency accounts, TNG eWallet or Alipay without opening a Chinese bank account. Opening a Mainland China bank account typically requires a registered legal entity in China, which isn’t necessary for most Malaysian businesses importing from or paying suppliers in China.
3. Can I pay 1688 suppliers from Malaysia?
Yes. World Pay from WorldFirst is the authorised international payment provider for 1688.com. Malaysian businesses can pay 1688 suppliers directly in CNH from a World Account without needing a Mainland China bank account. Other 1688 payment methods include Alipay, WeChat Pay and Mainland China bank transfers, which generally require a Chinese payment method.
This article is intended for informational purposes only and does not constitute legal advice or professional advice. This article should not be regarded as constituting an offer or a solicitation to buy or sell any regulated or financial products or services. WorldFirst makes no representations or warranties regarding the accuracy, completeness, or applicability of the content, and readers are encouraged to consult with legal professionals or other professionals for advice tailored to their specific situation. WorldFirst does not guarantee the accuracy and completeness of this article and expressly disclaims any and all liability to any person in respect of the consequences of anything done or omitted to be done wholly or partly in reliance on this article.
