Title: Proposed mobile trade application: a new approach for sharia compliant credit card

Authors: Mohammad H. Allaymoun; Omer Awad Hag Hamid

Addresses: College of Administrative and Financial Sciences, AMA International University, Bahrain ' Arab Open University-Bahrain, Bahrain

Abstract: This paper presents a proposed mobile application system that hopes to offer a shariah-compliant credit facility. To be the ideal solution for customers seeking technical solutions to help them effectively complete their credit operations under Islamic law. The proposed scenario suggests the use of an electronic application instead of a plastic card. The electronic application implements the required contracts that are necessary to make the processes fully shariah-compliant, the application execute a punch of contracts that approved by sharia such as agency (Wakalah) and sales (Murabaha), using a couple of tools also approved by sharia such as constructive possession, moreover there is a certain permissibility in debt particularly to debtor that there is allowance to deduct part of agreed profit this mean if a client accelerates payment of one or more instalments prior to the date specified for such payment, the Islamic bank may deduct part of the profit agreed upon between the Islamic bank and the client at the time of settlement this permissibility approved by AAIOFI standard.

Keywords: mobile application; credit card; e-bank; investments; Murabaha; Islamic banks; mobile banking.

DOI: 10.1504/IJEBANK.2020.109657

International Journal of Electronic Banking, 2020 Vol.2 No.2, pp.138 - 153

Received: 25 May 2019
Accepted: 31 May 2019

Published online: 18 Sep 2020 *

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