This study aims to develop Shariah-compliant e-wallet parameters by comparing Shariah rulings on e-money practices in Indonesia and Malaysia, with a specific focus on using the LinkAja Syariah e-wallet as a benchmark.
This study is based on a qualitative research methodology based on a documentary review of Shariah rulings regarding e-money issued by the National Shariah Council–Indonesian Ulema Council (DSN-MUI) and the Shariah Advisory Council of Bank Negara Malaysia. Additionally, this study has adopted the strategy of examining the operational framework of the LinkAja Syariah e-wallet using the case study method.
This study has proposed six parameters that should be considered in structuring e-wallet transactions to comply with Shariah principles. These parameters include the Shariah contract for each contracting party, the management of users’ funds, rewards or promotional activities, the listing of Shariah-compliant items in e-wallet transactions, users’ responsibility and the appointment of a Shariah Advisory Panel to oversee all transactions and activities in e-wallets in line with Shariah principles.
The study’s findings and recommendations are useful for Islamic fintech banks and non-bank service providers, including regulators, in structuring Shariah-compliant e-wallet transactions.
Although Fintech services that promote e-wallets have shown promising levels of demand in both countries, providers offering Shariah-compliant instruments remain somewhat limited. Furthermore, there are currently no specific parameters or guidelines specifically designed for Shariah-compliant e-wallets in Indonesia, Malaysia or on an international scale. This is despite the existence of fatwa institutions such as the Accounting and Auditing Organization for Islamic Financial Institutions.
