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.