"Sharia Fintech": Startups Race to Tap by Aligning with Islam

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4 March 2020 11:50 WIB

An alms box with a QR code for digital payments is seen as Muslims rest at Istiqlal mosque in Jakarta, Indonesia, February 14, 2020. Picture taken February 14, 2020. Of Indonesia's 270 million population, half lacks bank accounts but most now have mobile phones. Questions about compliance with Islamic law are a significant hurdle for the adoption of digital payments and other fintech services, industry executives say. REUTERS/Willy Kurniawan

4 Maret 2020 00:00 WIB

An alms box with a QR code for digital payments is seen after Friday prayers at Istiqlal mosque in Jakarta, Indonesia, February 14, 2020. Picture taken February 14, 2020. Known as Sharia, the law strictly prohibits charging interest, or "riba", and clerics in Indonesia disagree on whether the popular cashback rebates and discounts given by digital wallets qualify. Social media videos in Indonesia on whether e-wallets are "haram" - prohibited by Islam - or incorporate "riba" rack up hundreds of thousands of views. REUTERS/Willy Kurniawan

4 Maret 2020 00:00 WIB

A volunteer collects alms boxes with QR codes and stacks them on a cart after Friday prayers at Istiqlal mosque in Jakarta, Indonesia, February 14, 2020. Picture taken February 14, 2020. Indonesia's top Muslim clerical body has even issued an edict deeming virtual money acceptable, as long it met specific conditions. REUTERS/Willy Kurniawan

4 Maret 2020 00:00 WIB

Alms boxes with QR codes for digital payments are seen after Friday prayers at Istiqlal mosque in Jakarta, Indonesia, February 14, 2020. Picture taken February 14, 2020. To showcase the compliance of their services with Islam, fintech firms are organising forums with Islamic scholars and sponsoring religious festivals. Newer startups are tailoring services for Indonesia's growing body of "born-again" Muslims, known as the "hijrah" movement at home. REUTERS/Willy Kurniawan

4 Maret 2020 00:00 WIB

Men use their phones as alms boxes with QR codes are collected on a cart after Friday prayers at Istiqlal mosque in Jakarta, Indonesia, February 14, 2020. Picture taken February 14, 2020. GoPay, which is part of ride-hailing firm Gojek, has partnered with the Indonesian Mosque Council since November to enable digital donations, including "zakat", or compulsory alms giving, in its 800,000 mosques, CEO Aldi Haryopratomo said. "Zakat" alone amounts to over $500 million annually in Indonesia. REUTERS/Willy Kurniawan

4 Maret 2020 00:00 WIB

A Muslim man uses his phone as alms boxes with QR codes are collected on a cart after Friday prayers at Istiqlal mosque in Jakarta, Indonesia, February 14, 2020. Picture taken February 14, 2020. Rival LinkAja, which was formed by a consortium of Indonesia's top state-owned firms, has launched similar donation efforts. It is now readying LinkAja Sharia, which will offer a range of financial services specifically targeted at conservative Muslims and only accept money from Islamic banks. REUTERS/Willy Kurniawan

4 Maret 2020 00:00 WIB