SHARIA-COMPLIANT CREDIT CARD EXPOSURE AND UTILISATION IN THE GROWING DIGITAL ECONOMY

Abstract

Many cashless payment tools have been introduced into the Indonesia market in
the form of electronic money cards. The Sharia-compliant credit card is a traditional
electronic payment tool, but is provided by only two Islamic finance institutions among
the many in Indonesia. The increase in Sharia-compliant credit card transactions over
time may mean banks are exposed to non-performing risk. Customer behaviour varies
in the use of such cards, and this may cause unpredicted results with regard to card
performance. Therefore, the purposes of this study are: 1) to identify the behaviour
of Sharia-compliant credit card users and 2) to analyse the factors which influence
this behaviour. The primary data were gathered by distributing questionnaires with a
total sample of 170 respondents and were analysed by employing structural equation
modeling. The research shows that gender, age, and education influence perceived
behaviour control, and that expenditure influences subjective norms. Customers’
attitudes, subjective norms and perceived behaviour control are proven to influence
their intentions, while customers’ intentions, perceived behaviour control and income
influence their behaviour when using Sharia-compliant credit cards. For further
sustainable inclusive growth, issuers should pay attention to education for specific
audiences.