E-COMMERCE VIA MOBILE BANKING: CONTEMPORARY SHARIAH ISSUES AND WAYS TO ADDRESS THEM

Abstract

Purpose: This study aims to address some of the contemporary issues and challenges concerning mobile banking via Islamic banks, specifically in e-commerce and m-commerce. Theoretical Framework: Mobile banking has made it possible for consumers to buy things online right from their pockets. With the availability of this sophisticated technology, online retailers have been swift in exploiting mobile banking for m-commerce to entice consumers into buying their products without serious considerations of ethical and halal aspects. Addressing these issues is important to address Muslim consumers’ reluctance to fully utilise the functions of mobile banking. Methodology: This study utilises a qualitative research method using virtual library and internet research. The information retrieved mainly came from academic journals, books, reports, magazines, newspapers, and websites. Findings: This study finds that most of the transactions in e-commerce are permissible in Islamic commercial law. Research Implications: This paper outlines issues such as gharar (uncertainty) and deception in e-commerce transactions and ways to address them. Among the ways to address these issues are content moderation, whether by a third party body or consumers themselves, and artificial intelligence. Another way is by applying the principle of khiyar in terms of khiyar al aib (option of defect) and khiyar al ru’yah (option of inspection). Originality/Value: By addressing these issues, it is believed that consumers will be more aware of their rights in the eyes of Islamic law, which some argue accords more justice to consumers.