Islamic Fintech Innovations: Shariah Issues and Parameters for E-Wallet Transactions by Dr Rafisah Mat Radzi

On Wednesday, 4th September 2024, the Department for Islamic Legal Studies at the Al-Mahdi Institute (AMI) hosted a research seminar by Dr. Rafisah Mat Radzi (Universiti Sains Malaysia & AMI) on the topic of Islamic fintech innovations, focusing specifically on Shariah-compliant e-wallet transactions in Malaysia.

The seminar was a highly informative session, providing valuable insights into the future of Islamic fintech and the practical steps needed to ensure Shariah compliance in digital finance. Dr. Mat Radzi’s presentation delved into the rising prominence of e-wallets in Malaysia’s financial landscape and the need for clear Shariah guidelines within the Islamic finance industry to address this growing trend. Highlighting a gap in Shariah-compliant frameworks for e-wallets, she examined existing practices in both Indonesia and Malaysia, and proposed a framework grounded in Shariah principles that could be adopted by service providers and regulatory authorities alike.

Drawing from a wealth of primary research, including insights from Shariah advisors in the banking sector, Dr. Mat Radzi provided an in-depth analysis of the Shariah issues concerning e-money transactions. Her findings underscored the need for further alignment between fintech innovations and Islamic jurisprudence, ensuring that digital payment systems uphold the ethical and legal standards required by Shariah.

The seminar concluded with a dynamic discussion among attendees, who engaged Dr. Mat Radzi on the challenges and opportunities in establishing a compliant framework for e-wallets. Her research, backed by international and national funding, showcased her expertise in Islamic finance, particularly in areas such as sukuk, crowdfunding, and Shariah-compliant financial products.