Islamic Credit Card and its Value-Based Proposition: A Perspective from Maqasid Al-Shariah

Abstract

Islamic credit card (ICC) represents a significant innovation in Islamic finance, offering modern financial convenience while adhering to shariah principles. This paper examines the value-based proposition of ICC through the lens of maqasid al shariah, particularly the preservation of wealth, highlighting their contribution to justice, fairness, and social welfare, while aligning with sustainable Development Goals 1, 8, 10, 12, and 16. While ICC is a substantial innovation, is it not without controversy. Some argue that the underlying structures may comply with the form of shariah but risk falling short of its true spirit. This study employed qualitative research design through which case study is analysed using document analysis to fully understand the structure of the ICC related to the objective of maqasid al-shariah. The existing structure seems misaligned with the objectives of maqasid al-shariah, thus necessitating regulatory intervention for improvement and restructuring. Nevertheless, this study is constrained by the lack of formal endorsement from key stakeholders namely the regulator, both shariah committees, shariah and advisors and cardholders, which limits a comprehensive understanding of the ICC’s underlying structure in relation to maqaṣid al shariah. Accordingly, future research should focus on the endorsements from the aforesaid stakeholders to ensure the alignment with maqasid al-shariah is fulfilled.