The Opportunities of Digital Wallets from an Islamic Perspective

Mezbah Uddin Ahmed () and Kazi Md Tarique
Additional contact information
Mezbah Uddin Ahmed: International Shari’ah Research Academy for Islamic Finance (ISRA)
Kazi Md Tarique: University of Liberal Arts Bangladesh (ULAB)

Chapter Chapter 15 in Islamic FinTech, 2021, pp 267-279 from Springer

Abstract: Abstract Digital wallets are gaining popularity in recent years. Besides convenience, the promotional offers provided by these wallets are among the primary reasons for people to be attracted to use the wallets. This chapter explores Shariah permissibility of these promotional offers. The chapter finds that the money kept in digital wallets can be looked at from two different perspectives, and the Shariah opinion on the permissibility of promotional offers will vary according to the perspective. The chapter argues that if the money kept in digital wallets is considered as a loan-based deposit (qard), then the promotional offers or additional benefits provided by the wallets are not permissible, unless the benefits are fully discretionary. However, the chapter also argues that the money does not hold its original form as soon as it is credited to digital wallets, that is, money transforms into a new form of digital currency. In this case there may not be any Shariah issue on the additional benefits received. The paper also identifies several issues related to digital wallets that require further research.

Keywords: Digital wallet; Shariah; Islamic finance; FinTech (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-45827-0_15

Ordering information: This item can be ordered from
http://www.springer.com/9783030458270

DOI: 10.1007/978-3-030-45827-0_15

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().