East Java, IO – The Indonesian Ulema Council (MUI) East Java chapter declared “buy now, pay later” (BNPL), a digital payment system which offers installment payments, to be haram (forbidden under Islamic law) after the organization convened an ijtima (gathering of clerics).
East Java MUI edict commission chair KH Ma’ruf Khozin explained that BNPL is considered illegal because it is not in accordance with the Islamic law as it imposes an interest rate of around 2 percent and a fine of around 1 percent if payment is delayed.
“Such method is not justified according to fiqh [Islamic jurisprudence],” said Ma’ruf, as reported by CNN Indonesia, Tuesday (2/8).
Ma’ruf went on to say that BNPL service is also deemed haram because the nominal paid by the user is greater than the borrowed sum.