Islamic Credit Research Articles

Driving Factors Behind the Issuance and Use of Islamic Credit Cards in Indonesia: The Role of Consumerism

Driving Factors Behind the Issuance and Use of Islamic Credit Cards in Indonesia: The Role of Consumerism

Antecedents of Islamic credit card adoption in Pakistan: an empirical study based on the decomposed theory of planned behavior

PurposeIn the past three decades, the expansion of Islamic banking has been recognized as one of the most significant financial developments across the world, and to enhance their market share in the highly competitive global banking market, these Islamic banking institutions must continue to be innovative. Credit cards are popularized worldwide; developing countries are also intrinsically motivated to adopt this product for performing financial transactions; however, understanding the factors influencing Islamic credit card (ICC) adoption remains limited, and the ICC still needs to attain adequate market share in the banking sector. Therefore, this study aims to investigate the determinants of ICC in Pakistan.Design/methodology/approachFor empirical estimation, sample data from 499 respondents, including ICC users and individuals willing to use ICC, is utilized through partial least square structural equation modeling.FindingsThe results show that attitude, compatibility, perceived behavioral control and religiosity are positive, while complexity negatively affects ICC adoption. In contrast, social influence, trust and satisfaction are insignificant determinants of ICC’s intention to use in Pakistan.Originality/valueAs a banking service, ICCs are viewed as a new banking product in Pakistan and have limited scope in the literature. Therefore, this study contributes to the existing literature by providing more integrating policy insights to academians and banking managers on ICC service in Pakistan.

Analysis to increase sharia credit card users: study in four cities in Indonesia

Purpose The purpose of this study is to examine the effect and influence of perceived usefulness and perceived ease of use on knowledge sharing to improve and use Islamic credit cards. Design/methodology/approach Structural equation modeling was used in the analysis of the data collected from 160 respondents in four cities in Jakarta, Indonesia, using an online survey. Findings This study analyzes the effect of perceived usefulness and perceived ease of use on knowledge management, and also analyzes the effect of increasing knowledge management in increasing Islamic credit card users, as well as the role of knowledge management as mediation. Research limitations/implications This study only examines Islamic credit cards by looking at the contribution of the role of perceived usefulness and perceived ease of use knowledge management that are felt by users and prospective users of Islamic credit cards. Practical implications The results of this study highlight the need for Islamic banks to provide and increase knowledge to understand and know well about Islamic credit cards, which can increase intentions to become new users. Originality/value This research provides additional knowledge on Islamic credit cards, commonly referred to as bithaqah al-l’timan, as a means of payment and cash withdrawals in accordance with applicable regulations with reference to Islamic principles and policies by providing convenience, security and comfort for credit card users and for bank customers. Sharia banking can also grow the sharia economy, which currently Indonesia is still far behind.

Islamic Credit Card Adoption: Empirical Evidence From Malaysia

The aim of this study is to investigate the factors determining the Malaysian bank customer's behavioral intention to use Islamic credit card. Drawing from the Theory of Reasoned Action (TRA), this study proposes a modified and simplified model to examine the acceptance factors of attitude, subjective norm and perceived financial cost within the Islamic credit card context. The model is tested using survey data from 257 respondents. The results reveal that attitude, subjective norm and perceived financial cost significantly influence the Islamic credit card intention to use. The study is an eye opener on the need to establish the link between TRA and Islamic credit card behavioral intention, which previously is limited to investigate.

Analysis of Financial Performance on Business Continuity of Islamic Credit Banks

Analysis of Financial Performance on Business Continuity of Islamic Credit Banks

Credit-using behavior of Muslims in non-Muslim country:A study of Nakhon Si Thammarat, Thailand

In today’s globalizing economy, a wide variety of credit sources are available to people in need of funds. However, for Muslims, prescriptions and limitations imposed by the Islamic religion have the potential to shape their credit-seeking behavior. This study investigates credit-using behavior of Muslims in Thailand, a non-Muslim country. The sample comprised 385 Muslims selected from 13 districts in Nakhon Si Thammarat. Data were obtained through face-to-face administration of structured questionnaires and analyzed through means, frequencies, standard deviation and ANOVA. Findings showed that most of the Muslims in Nakhon Si Thammarat did not seek credit from Islamic sources. Instead, they looked to conventional banks, General Cooperative and Saving Group and Non-bank creditors. In addition, most Muslim credit users were found to be conservative, had only one credit contract with one financial institution, minimal remaining debt balances, and were punctual in debt repayment. It was also revealed that Islamic Cooperatives and Savings groups constituted the most suitable Islamic source of funds for Shariah-compliant credit. It is recommended that stakeholders in the banking and credit sector should put in more effort to advance the operations of Islamic cooperatives and savings groups to provide convenient access to financial services and broaden the scope of Islamic credit to Muslims.

IMPLEMENTASI BAI` AL-INAH DAN KAFALAH-IJARAH DALAM SYARIAH CHARGE CARD

This study aims to find out how the implementation of the bai` al-inah contract with kafalah-ijarah in the issuance of Islamic credit cards. These two types of contracts are used in two different countries, namely Malaysia and Indonesia, with very different performance achievements in Islamic banking in the two countries. The method used in this study is comparative analysis. Source of data is literature literature. The discussion is carried out with a legal and benefits approach. The results show that the bai` al-inah contract, materially, receives a lot of rejection, although not in absolute terms. But there are loopholes other than a few Ulama who allow it, namely the type of bai` al-wafa` with the involvement of a third party. However, the contract between the two in sharia credit card transactions is not the only factor. Islamic financial performance is more determined by customer behavior.

COMPARATIVE STUDY OF ISLAMIC CREDIT CARDS TO BE ACCEPTED: MUSLIM CONSUMERS’ PERCEPTIONS

The use of standard credit cards, which incorporate the practice of riba in the case that a late payment is made, has resulted in a conflict with the perspectives of Muslim clients, which is to be addressed in choosing the best alternative available cards. The primary purpose of this research is to analyze the many existing models of Islamic credit cards to determine which one is most in line with Sharia law. The kind of study that has been done is descriptive, which employed rigorous literature studies and investigated the existing theories. The holy Quran is the source of the fundamental laws that govern what is and is not allowed in terms of credit and debt. After then, the attributes of the cards that are being presented are analyzed in light of those principles to ensure that they adhere to Sharia, which is a religious law. The Muslim community has access to a wide range of credit card options to pick from. Charge cards, Qard Al-Hasan cards, Bai Al-Inah cards, Mushraka Mutanqisa cards, Tawarruq cards, and Murabahah cards are all included in the bundles. Also had are Tawarruq cards and Murabahah cards. Critiques raised voices against Islamic credit cards. Consequently, there is a need for a payment method that may function like a credit card. However, they are still obligated to maintain complete conformity with Islamic principles. This article takes a closer look at the packages mentioned above to understand better the degree to which the various options are accepted. The study explored the crucial features of the existing Islamic credit cards and evaluated the shariah compliance of those concepts. According to the findings and conclusions of the study, the authors concluded that the 'Mushraka Mutanqisa' is the most Shara-compliant and hence most likely to be approved by Muslim customers.

Customers Perceptions to Accept the Islamic Credit Card (ICC) in Bangladesh

Customers Perceptions to Accept the Islamic Credit Card (ICC) in Bangladesh

Analisis Kaidah Urf pada Fatwa DSN-MUI No. 54 tentang Syariah Card


 
 Humans as social beings cannot be separated from interaction with others, especially in fulfilling their daily needs, in economic activities, buying and selling transactions have a large enough portion to be discussed and studied, at the beginning of its development, buying and selling that occurs is still traditional, along with the times, found a medium of exchange called money, either in the form of metal or fiat money, the existence of money makes it easier for humans to make transactions. Innovation in the economic world, especially the banking world, is always dynamic, one of the emerging products is the sharia card or sharia credit card. The Indonesian Ulema Council through the National Sharia Council then provides direction through its fatwa No. 54 regarding sharia cards, in its fatwa sheet one of the arguments used is fiqh rules that discuss urf, so this study aims to discuss the relationship between the emergence of sharia card products and the urf argument that be included. Have the needs of the Islamic economic community in Indonesia reached the urf level and explain the mechanism of the sharia card contract listed on the DSN-MUI fatwa sheet No. 54. This research is a qualitative research based on library research with the main reference being turast books based on ushul fiqh and qawaid fiqhiah. After reviewing and paying attention to the concepts of urf in the two branches of science above, it was found that the needs of the community which were the main reason for the birth of this sharia card product had not yet reached the level of urf or habit, it only reached the level of مَا تَعُمُّ بِهِ الْبَلْوَى which is a condition where the use of credit cards in transactions has become common, but the results of this study do not necessarily result in this fatwa being automatically invalidated, because in its reference, DSN-MUI includes arguments and other rules that aim to strengthen sharia principles that apply to sharia cards. or Islamic credit card. This research is expected to be an example of studying fatwa sheets issued by DSN-MUI, so that it can become additional knowledge for those who want to study a fatwa.
 Keywords: Urf, Fatwa, Syariah Card

Understanding the Drivers of Islamic Credit Card Selection Using TRA Model: Evidence from Khyber Pakhtunkhwa, Pakistan

This study investigates the drivers of Islamic Credit Card (ICC) adoption in Khyber Pakhtunkhwa (KP), Pakistan by using the extended Theory of Reasoned Action (TRA) model. Particularly, the study examines the impact of subjective norms, attitude, perceived financial cost, knowledge, and social influence on ICC selection. Using a convenient sampling technique, this study relied on self-administered questionnaires that were distributed among Islamic banks’ customers in Kohat and Bannu divisions. A total of 400 questionnaires were distributed, and 340 valid questionnaires were selected for the final analysis. The results from the regression analysis indicate that the factors i.e., subjective norm, customer attitudes, knowledge, and social influence have a positive and significant effect on the intentions to use the ICC, but perceived financial cost shows a negative effect on the intentions to use ICC. Among the predictors, the subjective norm was found a very influential driver to forecast the intention to use ICC. Our results provide insights to managers of Islamic banks, policymakers, and Sariah scholars to understand how to promote ICC.

PENGARUH PENGETAHUAN, KEPERCAYAAN, DAN GAYA HIDUP TERHADAP MINAT KEPEMILIKAN KARTU KREDIT SYARIAH (Studi Empiris Fakultas Ekonomi dan Bisnis UMJ

The purpose of this study is to analyze the influence of knowledge, belief, and life style on the interest in ownership of Islamic credit cards. The data used in this study are primary data collected from 84 respondents of class employees and alumni of Islamic Economics. The sampling technique used in the study was nonprobability sampling with purposive sampling type, then the data was processed using multiple linear regression analysis. The results of this study indicate that knowledge, belief and lifestyle partially have a positive and significant effect on the interest in ownership of Islamic credit cards.

Manifestation of Sharia-based credit in its realization fulfilling needs using a credit system

Sharia credit is the provision of money based on a loan agreement or agreement between the lender and the recipient. The recipient must return the money within the agreed timeframe in exchange for profit sharing. This article aims to analyze and explain the description of Sharia credit, distinguish Sharia credit from conventional credit, and the effectiveness of Sharia credit in Indonesia. Sharia credit is a product of Sharia-based financial institutions in which all transactions are exempt from laws violating religion's provisions. The most fundamental difference between Islamic credit and conventional credit is in the remuneration system. Established credit uses interest rates, while Islamic credit uses a profit-sharing system based on an agreement. The results of writing this article show that Sharia credit is more down-to-earth than conventional credit with all the advantages possessed by Sharia credit. It does not apply an exciting system but implements a profit-sharing or <em>mudharabah</em> system. Through the profit-sharing system, Islamic credit is hoped to improve the economy by providing financing to those in need without violating Islamic religious rules.

Kontribusi Penerapan Strategi Marketing Mix Islam Dalam Peningkatan Kinerja

The 4.0 Industrial Revolution is currently a hot topic of discussion by economic practitioners, academics and entrepreneurs. Because it requires that the elements have competitiveness from various aspects, so they can realize what they aspire to. Especially those engaged in Sharia business. Along with the development of the Sharia Business world, also developed macro and micro economies that are oriented to Islamic Sharia, and also developed Islamic Financial Institutions, Islamic financial institutions consisting of banks (consisting of Islamic commercial banks and Islamic credit banks), and institutions non-bank financial institutions, one of which is micro, namely Baitul Maal wa Tamwil (Sudarsono, 2009: 8). Baitul Maal wat-Tamwil (BMT) operates based on sharia principles which have a function to empower the economy of the people, and have a social function. Nowadays, with the rapid growth of BMT, people are starting to look to invest funds and use BMT services. In order to be able to compete in this Disruption era, the BMT UGT Sidogiri Situbondo Branch requires that the concentration of its development be on 7 important points; namely product, price, place, promotion, process, people, and physical evidence. in order to be able to survive the value of trust (Trust) to the Community. By combining according to Islamic Marketing Principles The principle of Islamic marketing combines the concept of maximizing value with the principle of 'justice' for the welfare of the wider community. These principles offer the means to create value and improve the standard of living of the community at large through commercial activities. Islamic ethical guidelines guarantee the respect and freedom of individuals, both bankers and customers.

Analisis Fiqh Terhadap Kartu Kredit Syariah

Along with the development of modern finance, the need for safe and efficient means of payment has become a necessity. Credit cards are the solution to answering these needs. The scholars agreed that credit cards are forbidden in Islam because of the interest in the mechanism, so an agreement emerged to create a credit card with a mechanism that is under sharia principles. However, differences of opinion among scholars arose mainly regarding the underlying contracts and the requirements that must be met on Islamic credit cards. This study aims to find out various fiqh analyses of scholars regarding the ability of Sharia credit cards. This type of research is qualitative with the library research method. The results showed that in general, scholars allow sharia credit cards. However, there are differences regarding the taking of fees on the kafalah contract, profit from administrative costs, and ta'widh on late fees.

Awareness towards Selection of Islamic Credit Card Among Malaysian Consumers

This study aimed to explore the level of awareness and understanding of Malaysian bank consumers on Islamic credit cards. The majority of bank consumers still lack awareness and knowledge in understanding about Islamic contracts in the bank. Still, only a few consumers are aware and choose Islamic credit cards facilities to avoid the prohibited element and get more benefits from Islamic credit cards. This study has used the quantitative method research. This study uses questionnaires to achieve the objectives of the research. A questionnaire has been designed and data was collected from 100 respondents of bank consumers in Malaysia. According to the findings, religious beliefs and attitudes were the most influential factors among Malaysian bank consumers' decisions to use Islamic credit cards. All of the hypotheses have been accepted. The limitation of this study was that only the employed respondents could answer this survey for the scope of this research. Furthermore, consumers who use Islamic credit cards are still the lowest compared to Conventional credit cards, thus the difficulty in collecting the data. The outcomes of this study will be used as a framework for future research in Islamic card usage and design. The Islamic credit card concept may also be applied to other Islamic products and services. These findings contribute to the level of knowledge of bank consumers in deciding to use Islamic credit cards.

Sentiment Analysis of Literature on Sharia Credit Card

This study was carried out to examine the Islamic credit card within the context of Islamic economics in terms of scientific research produced in response to the introduction of Islamic credit cards. Descriptive bibliometric statistical analysis and sentiment analysis are applied to secondary data in the form of 134 papers published over the last nine years and then processed with VOSViewer and SentiStrength. The results demonstrated that bibliometric mapping is divided into two clusters, with cluster 1 containing 33 keywords and cluster 2 containing 26. The results of sentiment analysis of the literature indicate 34% positive sentiment, 25% negative sentiment, 41% neutral sentiment, and 0% high negative and high positive sentiment.

CUSTOMER PREFERENCES FOR IB HASANAH CARD PRODUCTS AS FINANCIAL CARD AT BNI SYARIAH BANK SURABAYA BRANCH

Currently, the Islamic finance industry is proliferating and continues to make exciting innovations to attract customers. This innovation offers convenience and efficiency in financing Islamic banking in Indonesia. one of the product innovations offered is a sharia credit card. Unlike conventional banks' credit cards, which based on interest, this Islamic credit card still based on a contract. This study aims to look at the preferences of sharia bank customers, especially at the Surabaya branch of BNI Syariah bank, in using the iB hasanah card product. The method used in this study is a quantitative method with an explanatory approach. This study indicates that contracts, fines, fees, and services together have a positive effect on customer preferences in choosing the iB Hasanah Card product. Furthermore, each variable significantly affects customer preferences in choosing the IB Hasanah Card as an efficient payment card.

Muslims and non-Muslims intention to hold Shariah-compliant credit cards: a SmartPLS approach

PurposeThe purpose of this paper is to examine the relationship between attitude, subjective norm, perceived behavioural control, religiosity, knowledge and Shariah-compliance with intention to hold Shariah-compliant credit card (SCCC) amongst Muslims and non-Muslims.Design/methodology/approachResearchers used survey questionnaire to collect data and applied a purposive sampling method, then analyzing the data using descriptive statistics and also multi-group analysis of SmartPLS.FindingsFor Muslims, attitude, subjective norm, Shariah-compliance, knowledge and religiosity are positively significant. While for non-Muslims, only attitude and subjective norm are positively significant to intention to hold SCCCs.Research limitations/implicationsThe behavioural study only focusses on intention to hold Islamic credit cards, which is constraining the extended model of the theory of planned behaviour (TPB) without the actual performance of the behaviour, which is holding SCCCs. Secondly, the research caters for a single method, namely, quantitative without including the qualitative method to better understand and explore other factors affecting consumers’ behavioural intention. The qualitative part can be carried out by conducting interviews with practitioners, regulators and customers. Thirdly, the cultural dimensions are not combined as parts of TPBs’ antecedents for extended model that could be affecting intention, as Malaysia has diverse ethnic groups with different religious background.Practical implicationsIn terms of managerial implications, the findings will further assist financial service providers to develop more effective marketing strategies for Islamic financial products not just to cater for the Muslims but also the non-Muslims, who are increasingly attracted to Islamic banking. As many Muslims are still holding conventional credit cards, it is timely for the Islamic financial institutions to attract them with the SCCCs.Social implicationsFinancial marketers are expected to be qualified and well-versed on the different Islamic product structures and also the conventional products. By having such enables them to enlighten and create awareness amongst the targeted consumers in seeking Shariah-compliant financial-related products.Originality/valueThe research will contribute to new theoretical knowledge of an extended behavioural model in relation to customers’ perception towards SCCCs’ acceptance.

Peningkatan Minat Dalam Penggunaan Kartu Kredit Syariah dengan Pendekatan Kepercayaan, Sikap dan Pendapatan di Kabupaten Labuhanbatu Utara

In non-cash transactions, Islamic credit cards have become a way of life in modern economic culture. The use of Islamic credit cards has risen and fallen throughout time due to a variety of variables. Trust, attitudes, and income are some of these determinants. The goal of this research was to see how beliefs, attitudes, and income affected interest in using Islamic credit cards. The basic data for this study comes from interviews with 38 participants in North Labuhanbatu Regency who were chosen using a borring sample approach. Multiple linear regression was used to evaluate the data. Each trust, attitude, and income level had a favorable and substantial impact on interest in using a sharia credit card, according to the findings. This study benefits (a) academics by providing proof of concept, and (b) Islamic banks by providing data to assess the factors that impact interest in using a sharia credit card.
 Keywords: Trust, Attitudes, Income, Islamic Credit Cards