E-wallet Transaction Framework in Malaysia: An Evaluation of Potential Shariah Issues

Rafisah Mat Radzi; Wan Nurliza W. Ramli; Lilik Rahmawati; Deasy Tantriana

doi:10.61707/2c0bst96

Authors

Rafisah Mat Radzi School of Distance Education Universiti Sains Malaysia 11800 Penang Malaysia
Wan Nurliza W. Ramli Manager, Shariah Research, Governance and Training, Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) Tingkat 24, Menara 1, Menara Kembar Bank Rakyat No. 33, Jalan Rakyat, KL Sentral 50470 Kuala Lumpur
Lilik Rahmawati Fakultas Ekonomi dan Bisnis Islam, UIN Sunan Ampel, JL. A. Yani 117 Surabaya, Jemur Wonosari, Kec. Wonocolo, Surabaya, Jawa Timur 60237 Indonesia
Deasy Tantriana Fakultas Ekonomi dan Bisnis Islam, UIN Sunan Ampel, JL. A. Yani 117 Surabaya, Jemur Wonosari, Kec. Wonocolo, Surabaya, Jawa Timur 60237 Indonesia

DOI:

https://doi.org/10.61707/2c0bst96

Keywords:

E-Wallet, E-Money, Shariah (Islamic Law), Rewards, Non-Compliance Item

Abstract

The finance industry's rapid growth and technological advances have led to the emergence of e-wallets, an electronic payment method for goods or services without cash. So far in the Islamic finance industry, the use of e-wallets is still in its initial stages, and there is currently no guideline or regulation that governs its transactions. Therefore, this study aims to evaluate potential Shariah issues related to e-wallet transactions as practiced in Malaysia. A qualitative method was employed through content analysis, focusing on Touch 'n Go, GrabPay, and Boost as case studies. The findings highlight crucial Shariah issues surrounding e-wallet application by non-bank issuers, issues of trust account and credit card, and the granting of rewards in the e-wallet, including the transaction for a non-compliance item.The findings contribute significantly to policymakers in formulating Shariah parameter for e-wallet transactions, providing assurance to Muslim users and encouraging them to embrace electronic payment technology with confidence.