Using E-Wallet in Collecting and Distributing Zakat in Malaysia

Abstract

Fintech, or financial technology, seeks to supplement conventional financial techniques in the provision of financial services and improve financial operations through the use of technology. The development of fintech has had a significant positive impact on social activities in addition to financial services. The administration of zakat has advanced to a new level of innovation in zakat collecting and distribution through the use of e-Wallets as one of the fintech channels. This dynamism has helped to partially resolve a long-standing issue with the zakat administration related to openness, accountability, and efficiency in zakat collection and distribution. E-Wallets are thought to have the ability to address these problems. The purpose of the study was to examine the available choices and the most common kind of e-Wallet related to zakat activities that are currently accessible on the market. Therefore, it is necessary to provide answers to queries such as the selections of e-Wallet that are accessible in the present market. It is interesting to examine which e-Wallet is preferable and whether these prominent e-wallet providers provide zakat payment services. The current study applied the qualitative methodology through content and descriptive analyses of articles, official documents, business papers from the commercial sector, and social media inputs. It is believed that this study would shed some new light on the role that e-Wallet providers play in collecting and distributing zakat and will add a new level of information to the public, particularly regarding e-Wallet collaboration with the Zakat institutions.