E-Commerce Via Mobile Banking: Contemporary Shariah Issues and Ways to Address Them
Keywords:Mobile Banking, Mobile Commerce, Islamic Banking, Gharar, Fraud
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.
Abdul Rahman, N. R. (2020). The rule of Caveat Emptor for e-commerce transaction in Malaysia. Journal of Law and Governance, 3(1), 18–28.
Al-Khalaf, E., & Choe, P. (2020). A comparison study of trust in m-commerce between Qatari and non-Qatari customers. In C. Stephanidis, G. Salvendy, J. Wei, S. Yamamoto, H. Mori, G. Meiselwitz, … G. Goos (Eds.), HCI International 2020 – Late Breaking Papers Interaction , Knowledge and Social Media. Coppenhagen, Denmark.
Almajid, W. M. (2010). The legal enforceability of contracts made by electronic agents under Islamic law: A critical analysis of the effectiveness of legal reform in Saudi Arabia. University of Central Lancashire. Retrieved from http://clok.uclan.ac.uk/1522/1/AlmajidfinalPhDthesis.pdf
Amboala, T., Hafizah, A., Mokhtar, A., Muhammad, M. Z., Fauzan, M., & Othman, R. (2015). Development Method for Shariah Compliant e-Commerce Payment Processing, 7(5). https://doi.org/10.7763/IJCTE.2015.V7.995
Amin, H. (2008). E-business from Islamic perspectives: Prospects and challenges. Journal of Internet Banking and Commerce, 13(3), 1–6.
Amir, S., Saeed, A., & Kang, M. A. (2020). Explaining the main themes through the chiastic structure in Sura e Zukhruf, chapter 43 of Quran. Praxis International Journal of Social Science and Literature, 3(03), 5–10.
Auda, J. (2008). Maqasid Al Shari’Ah: an introductory guide. IIIT Publishers, 1–53.
Ascarya, A. (2015). Determining the Real Causes of Financial Crisis in Islamic Economic Perspective: ANP Approach. Tazkia Islamic Finance and Business Review, 9(2), 271318.
Baabdullah, A. M., Alalwan, A. A., Rana, N. P., Kizgin, H., & Patil, P. (2019). Consumer use of mobile banking (M-Banking) in Saudi Arabia: Towards an integrated model. International Journal of Information Management, 44, 38–52. https://doi.org/10.1016/j.ijinfomgt.2018.09.002
Bagheri, P., & Hassan, K. H. (2012). The application of the Khiyar al-’Aib (option of defect) principle in on-line contracts and consumer rights. European Journal of Law and Economics, 33, 565–575. https://doi.org/10.1007/s10657-012-9332-5
Bakir, V., & Mcstay, A. (2017). Fake News and the economy of emotions: Problems, causes, solutions. Digital Journalism, (July), 1–19.
Bhatti, A., Akram, H., Muhammad Basit, H., Khan, A. U., Raza Naqvi, S. M., & Bilal, M. (2020). E-commerce trends during COVID-19 Pandemic. International Journal of Future Generation Communication and Networking, 13(2), 1449–1452.
Billah, M. M. (1998). Caveat Emptor versus Khiyar al- ’ Aib: A Dichotomy. Arab Quaterly, 13(3), 278–299.
Bouheraoua, S., Mohamad, S., Kasri, N. S., & Abdullah, S. (2015). Shariah issues in intangible assets. Shariah Journal, 23(2), 287–324.
Dinar Standard. (2020). State of the global Islamic economy report: Thriving in uncertainty.
Elkin-koren, N. (2020). Contesting algorithms: Restoring the public interest in content filtering by artificial intelligence. Big Data and Society, July-Decem(1–13). https://doi.org/10.1177/2053951720932296
Fauziah, & Fathimah, E. (2020). Existence of Khiyar in online transactions (e-commerce) (compilation of Shariah economic law). Nurani, 20(1), 13–24.
Finextra. (2016). European mobile banking adoption surges. Retrieved from https://www.finextra.com/newsarticle/29141/european-mobile-banking-adoption-surges
Firdaus, Juneidi, A., Astari, L., & Mustikasari, F. (2020). Various methods of establishing contemporary Islamic law. Ulumuddin: Jurnal Ilmu-Ilmu Keislaman, 10(1), 39–58.
Flood, D., West, T., & Wheadon, D. (2013). Trends in mobile payments in developing and advanced economies. Reserve Bank of Australia Bulletin, 71–80. Retrieved from https://www.rba.gov.au/publications/bulletin/2013/mar/pdf/bu-0313-8.pdf
Gillespie, T. (2020). Content moderation , AI , and the question of scale. Big Data and Society, July-Decem(1–5). https://doi.org/10.1177/2053951720943234
Global Web Index. (2020). Mobile e-commerce adoption: Percentage of internet users from 16-64 who say they bought something via a mobile device. Retrieved from https://datareportal.com/reports/digital-2020-global-digital-overview
Gregorio, G. De. (2019). Democratising online content moderation : A constitutional framework. Computer Law & Security Review: The International Journal of Technology Law and Practice, 36(xxxx), 105374. https://doi.org/10.1016/j.clsr.2019.105374
Hamat, A. A., & Abd Halim, S. (2014). Principle of KhiyÉr al-Ru’yah and its application according to Islamic law as proposed by Muslim jurists. In 5th International Conference in Islamic Jurusprudence in the 21st Century 2014: Islamic Financial Industry and the Need for Revision within the Framework of Maqasid al-Shariáh. Kuala Lumpur: International Islamic University Malaysia.
Hamat, M. F., & Ellias, M. S. (2010). Aspek-aspek pemikiran kritis dalam Al-Qawaid Al-Fiqhiyyah. Shariah Journal, 18(3), 527–564.
Hanafi, F. (2021). Penerapan Konsep Khiyar dalam Perlindungan Hukum bagi Konsumen Transaksi Jual Beli Online. AN-NIZAM, 14(2), 83-102.
Khalid, F. M. (2002). Islam and the Environment. In P. Timmerman & T. Munn (Eds.), Encyclopedia of global environmental change (Vol. 5, pp. 332–339). Chichester: John Wiley & Sons.
Kingdom Digital. (2018). Fraud on Lazada and Mudah: Can predicting patterns curb the issue? Retrieved December 23, 2020, from https://www.kingdomdigital.com.my/fraud-lazada-mudah-can-predicting-patterns-curb-issue
Lestanti, Y. (2019). Transaksi layanan koin Game Goyang Shopee pada jual beli online dalam perspektif hukum Islam. Jurnal Al-Hakim, 1(2).
Lorien, W., Hakim, R., & Hakim, A. L. . (2022). The right to choose (Khiyar) innovation for contemporary transaction in e-commerce marketplace. Al-Uqud : Journal of Islamic Economics, 6(2), 192–205. https://doi.org/10.26740/aluqud.v6n2.p192-205
Luth, T., Ruba’i, M., Hamidi, J., & Susmto, B. (2017). The Role of Sharia Economic Law in Sustainable Development in Indonesia. Journal of Law, Policy and Globalization, 63, 224–228.
Malek, A., Man, A., Begum, A., & Hoque, K. A. (2014). Doctrine of “ Caveat Emptor ” ( Buyer be aware ) in Common Law and the Doctrine of “ Khiyar al aib ” ( Option of defect ) in Islamic Law : A Comparative Study, 2014(December), 201–216.
Mior Ibrahim, E. N., Md Noor, N. L., & Mehad, S. (2009). of online Muslim users Trust or distrust in the web-mediated information environment ( W-MIE ) A perspective of online Muslim users. Journal of Enterprise Information Management, 22(5), 523–547. https://doi.org/10.1108/17410390910993527
Mohamad Akram, L., Said, B., Riaz, A., Mohamed Fairooz, A. K., Mohammad Mahbubi, A., & Madaa Munjid, M. (2013). Islamic legal maxims and their applications in the Islamic finance. Kuala Lumpur, Malaysia: International Shari’ah Research Academy for Islamic Finance (ISRA).
Mohd Noor, M. M., Suliaman, I., Ahmad, K., Deraman, F., Abdullah, M., Shah, F. A., … Mohd Nor, M. R. (2013). The rights of Khiyar (option) in the issue of consumerism in Malaysia. Middle East Journal of Scientific Research, 13(2), 154–161. https://doi.org/10.5829/idosi.mejsr.2013.13.2.1766
Muhamad, N. S., Adham, K. A., Said, M. F., & Nasir, N. M. (2020). Exploring internationalization of Halal Taiwan : Analysis of Taiwan ’ s halal food products in Malaysia. Malaysian Journal of Society and Space 16, 2(2), 151–163.
Muhammad, M. Z., Amboala, T., Mohd Salleh, M. Z., Abdullah, A., Che Tahrim, S. N., & Che Nawi, N. (2019). The Application of Shariah Principle in E-commerce Transaction : A Model The Application of Shariah Principle in E-commerce Transaction : A Model Development. Research in World Economy, 2(Special Issue), 84–87. https://doi.org/10.5430/rwe.v10n2p84
Ribadu, M. B., & Rahman, W. N. W. A. (2017). E-commerce quality evaluation metrics: A sharia compliance approach. Journal of Telecommunication, Electronic and Computer Engineering, 9(3-5 Special Issue), 101–110.
Ribadu, M. B., & Wan Ab. Rahman, W. N. (2019). Applied Computing and Informatics An integrated approach towards Sharia compliance E-commerce trust. Applied Computing and Informatics, 15(1), 1–6. https://doi.org/10.1016/j.aci.2017.09.002
Ribadu, M. B., Wan Ab. Rahman, W. N., Abd Ghani, A. A., Kamaruddin, A., & Othman, M. S. (2020). Sharia compliance requirements framework for e-commerce systems: An exploratory study. Journal of Theoretical and Applied Information Technology, 98(06), 994–1008.
Rouse, M., & Verhoef, G. (2017). Mobile banking in Sub-Saharan Africa: Paving the way towards financial development. Revista de La Historia de La Economia y de La Empresa, 11(78006), 163–185. https://doi.org/DOI:
Shaikh, A. A., & Karjaluoto, H. (2014). Mobile banking adoption: A literature review. Telematics and Informatics, 32(1), 129–142. https://doi.org/10.1016/j.tele.2014.05.003
Suhaimi, M. A., Mohamed Razi, M. J., Hussin, H., Muhammad, M. R., & Muhammad, M. (2013). Muslim Consumers ’ Perceived Behavior in E-commerce Environment. In 2013 International Conference on Advanced Computer Science Applications and Technologies (pp. 515–520). https://doi.org/10.1109/ACSAT.2013.107
Suzuki, Y. (2013). A Post-Keynesian perspective on Islamic prohibition of Gharar. International Journal of Islamic and Middle Eastern Finance and Management, 6(3), 200–210.
Syahputra, A., & Yoesoef, Y. M. (2020). Praktek Gharar pada endorsement produk di media sosial Instagram. Al-Mustashfa: Jurnal Penelitian Hukum Ekonomi Islam, 5(2), 117–126.
Tawil, N. M., Ramlee, S., Jaafar, J., & Saat, F. M. (2015). An overview of foodpreneur awareness among Small and Medium-Sized Enterprises (SME) of halal certification. Asian Social Science, 11(21), 91.
Todorof, M. (2018). Shariah-compliant FinTech in the banking industry. ERA Forum, 19(1), 1–17. https://doi.org/10.1007/s12027-018-0505-8
Triasih, D., Heryanti, B. R., & Pujiastuti, E. (2020). Legal protection for consumers in online transactions. In Emerging Trends in Psychology, Law, Communication Studies, Culture, Religion, and Literature in the Global Digital Revolution (pp. 18-21). Routledge
Tyan, E., & Walsh, J. . (2012). Fatwa. In Encyclopaedia of Islam, Second Edition.
Uddin, M. A. (2015). Principles of Islamic finance: Prohibition of Riba , Gharar and Maysir. Munich Personal RePEc Archive Principles, (67711). Retrieved from https://mpra.ub.uni-muenchen.de/67711/1/MPRA_paper_67711.pdf
Yamani, A. Z. (1979). The Eternal Sharia. Journal of International Law and Politics, 12, 205.
Zainul, N., Osman, F., & Mazlan, S. H. (2004). E-Commerce from an Islamic perspective. Electronic Commerce Research and Applications, 3, 280–293. https://doi.org/10.1016/j.elerap.2004.01.002
How to Cite
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Authors who publish in this journal agree to the following terms: the author(s) authorize(s) the publication of the text in the journal;
The author(s) ensure(s) that the contribution is original and unpublished and that it is not in the process of evaluation by another journal;
The journal is not responsible for the views, ideas and concepts presented in articles, and these are the sole responsibility of the author(s);
The publishers reserve the right to make textual adjustments and adapt texts to meet with publication standards.
Authors retain copyright and grant the journal the right to first publication, with the work simultaneously licensed under the Creative Commons Atribuição NãoComercial 4.0 (http://creativecommons.org/licenses/by-nc/4.0/), which allows the work to be shared with recognized authorship and initial publication in this journal.
Authors are allowed to assume additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (e.g. publish in institutional repository or as a book chapter), with recognition of authorship and initial publication in this journal.
Authors are allowed and are encouraged to publish and distribute their work online (e.g. in institutional repositories or on a personal web page) at any point before or during the editorial process, as this can generate positive effects, as well as increase the impact and citations of the published work (see the effect of Free Access) at http://opcit.eprints.org/oacitation-biblio.html