The Good, the Bad and the Ugly of Islamic Credit Cards

The Malaysian Islamic financial services have developed and thrived in the competitive domestic global market especially last three decades. Government has provided industry conducive enabling environment to catalyse growth development. finance gained prominence been identified as area nation’s sector. Bank Negara Malaysia Annual Report 2020 published on 3 April amongst others highlights that with an advanced regulatory framework already place, is poised play a more prominent role coming period, particularly its potential apply shariah principles expand social address gaps innovative ways. With range of compliant products services, halal acceptance from both Muslims non-Muslims alike, albeit different levels according products. Specifically, certain degree it appears receptive other such loans for various purposes including purchases securities, properties, vehicles; working capital even personal than credit cards. According Monthly Statistical Bulletin: Highlights Statistics September 2020, banks had disbursed 35.7% or RM651.4 billion total banking system 2020. cards however lower share 10.2% RM3.7 card transactions. slower pace, performance vis–a-vis conventional cards, also compared merit further scrutiny analysis help better understand issues pertinent Issues why hire purchase performed better; cards; customers expectation product development marketing strategies need be carefully examined order overcome conundrum.