Factors Influencing Intention to Use Islamic Credit Cards in Selangor

Dzuljastri Abdul Razak; Ammar Ahmad Faris; Mohammad Syazwan Mohamed Shariff; Md. Siddique E Azam

doi:10.32890/ijib2019.4.1.1

Authors

Dzuljastri Abdul Razak International Islamic University Malaysia, Malaysia
Ammar Ahmad Faris International Islamic University Malaysia, Malaysia
Mohammad Syazwan Mohamed Shariff International Islamic University Malaysia, Malaysia
Md. Siddique E Azam International Islamic University Malaysia, Malaysia

DOI:

https://doi.org/10.32890/ijib2019.4.1.1

Keywords:

Islamic Credit Card, Benefits, Fair charges, Religious motivations, Selangor

Abstract

Islamic credit card (ICC) has been widely used for personal consumption. The use of ICC is gaining prominence as an alternative to conventional credit card as the concept and operations are permissible by the shariah. The paper aims to determine factors influencing intention to use ICC based on three variables namely benefits, fair charges and religious motivation. A quantitative methodology was conducted via a survey of 102 respondents in the state of Selangor. The results indicated that benefits and religious motivations have significant influence on the intention to use Islamic credit cards. Hence, practitioners should incorporate the two factors in their marketing efforts to promote ICC. The academician can benefit by conducting further research on this eminence body of knowledge.

Downloads

Download data is not yet available.

References

Abd Razak, S.A. (2015). Shariah Compliance of Islamic Credit Cards Reconsidered:A Case Study of Malaysia.ISRAInternational Journal of Islamic Finance, Vol. 7 (Issue 1).

Abozaid, A., & Dusuki, A.W. (2007). The Challenges of Realizing Maqasid al-Shari`ah in Islamic Banking and Finance,International Conference on Islamic Banking and Finance Research and Development, IIUM Malaysia. International Journal of Islamic Business | June 2019 | VOL 4 ISSUE 1 | Page 01-eISSN : 0127-662X |

Amin, H. (2012).Patronage factors of Malaysian local customers toward Islamic credit cards. Management Research Review,Vol. 35 No. 6, 512–530.

Amin, H. (2013).Factors influencing Malaysian bank customers to choose Islamic credit cards: empirical evidence from theTRA model. Journal of Islamic Marketing, 4(3), 245–263.

Bank Negara Malaysia (2010). Shariah Resolutions in Islamic Finance, Second Edition.

Evans, J.R., & Mathur, A. (2005). The value of online surveys. Internet Research, Vol. 15 No. 2, pp. 195–219.

Farah, J.M.S, Haji-Othman, Y., Omer, M.M. (2017). The Influence of Perceived Usefulness, Perceived Ease of Use, andPerceived of Trust on Customers' Acceptance to Use Islamic Credit Cards. International Journal of Managementand Economics, 4(1):24–32.

Goi, C.L., & Nee, P.H. (2008). Alarming credit card debts and bankruptcies among the young, Malaysian FinanceAssociation 2008 Conference Proceedings: Strengthening Malaysia’s Position as a Vibrant, Innovative andCompetitive Financial Hub, Kuching, Sarawak.

Hamstra, M. (2000). Credit Card Seekers Want Rewards. Business Editors, 2: 6.

Hanif, M. (2011). Differences and Similarities in Islamic and Conventional Banking. International Journal of Business and Social Science, Vol. 2, No.2.

Hasan Basri, M.N., Mohamad Nor, N., Abdul Haklif, S.Z., Hashim, M. (2013). Islamic Credit Cards: Issues and Challenges in Achieving MaqasidShariah.

Hussin, N. (2011). An Analysis of Attitudes to Islamic and Conventional Credit Cards in Malaysia: Perspective on Selection Criteria and Impact Analysis. Durham Theses, Durham University. Retrieved from Durham University.

Mohd Dali, N., & Abdul Hamid, H. (2007). A Study on Islamic Credit Cards Holders.

Ramayah, T., Noor, N., Nasurdin, A., & Choo, L. (2002). Cardholders' Attitude and Bank Credit Card Usage in Malaysia: An Exploratory Study. Asian Academy of Management Journal, 7(1), 75–102.

Syed, S.A., Ruzita, A.R., Md Ridhwanul, H.,MdAtiqur, R.R., (2014). What influence credit card debts in young consumers in Malaysia.

Usmani, T.S. (2002). An Introduction to Islamic Finance, MaktabaMa’arif Al Quran, Karachi, Pakistan.

Vejzagic, M., & Smolo, E. (2011). Maqasid al-Shari’ahin Islamic Finance: An Overview,4th Islamic Economic System Conference (pg. 22), Kuala Lumpur: Faculty of Economics and Muamalat and Islamic Finance and Wealth Management Institute, Universiti Sains Malaysia.

White M. J. (2007). Bankruptcy Reform and Credit Cards, NBER Working Paper Series, Working Paper 13265, National Bureau of Economic Research. International Journal of Islamic Business | June 2019 | VOL 4 ISSUE 1 | Page 01-eISSN : 0127-662X | Zamzamir@Zamzamin, Z., Jaini, A., Mat, S.Z. (2015). Bankruptcy among young users of credit card in Malaysia: a case study of RHB Islamic (Menara Yayasan Tun Razak) bank customers. In: The Proceedings of the 4th International Seminar on

Entrepreneurship and Business (ISEB 2015). Faculty of Entrepreneurship and Business, UMK, pp. 628–636.