Islamic Financial Risk Analysis of Buy Now Pay Later (BNPL) Services in the Digital Economy
DOI:
https://doi.org/10.35335/3ey7q858Keywords:
Buy Now Pay Later, Islamic Finance, Financial Risk, Islamic Fintech, Sharia ComplianceAbstract
The rapid growth of financial technology (fintech) has transformed modern financial systems, particularly through the emergence of the Buy Now Pay Later (BNPL) model as a popular digital financing service. BNPL provides consumers with convenience and flexibility by enabling installment-based purchases without traditional credit cards. However, the increasing use of BNPL services has raised concerns regarding debt accumulation, impulsive buying behavior, financial instability, and ethical issues, especially from the perspective of Islamic Finance. This research aims to analyze the Islamic financial risks associated with BNPL systems, identify Sharia compliance issues, examine consumer vulnerability patterns, and formulate recommendations for Sharia-compliant BNPL innovation. This study employs a qualitative descriptive method using a library research approach. Data were collected from scientific journals, books, fintech reports, regulations, and previous studies published within the last ten years. The data were analyzed using qualitative content analysis by comparing BNPL practices with Islamic economic principles, including the prohibition of riba (interest), gharar (uncertainty), excessive debt, and unethical financial behavior. The study also applies the framework of Maqasid al-Shariah to evaluate the compatibility of BNPL systems with Islamic financial objectives. The findings reveal that many conventional BNPL systems contain interest-like charges, unclear contractual agreements, excessive consumerism, and exploitative financing practices that potentially conflict with Islamic principles. The study also identifies consumer vulnerabilities such as impulsive buying, low financial literacy, over-indebtedness, emotional stress, and financial dependency. This research concludes that Sharia-compliant BNPL systems can be developed through transparent contracts, ethical financing mechanisms, strong Sharia governance, and enhanced consumer financial literacy.
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