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

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.