Application of Qard in MUI Fatwa No. 4/2022 on Shopee Paylater for Muslim Consumer Protection

Abstract

The rapid growth of digital financial transactions has raised concerns regarding compliance with Islamic law, particularly in avoiding riba (usury). One financial service that has attracted significant attention is Shopee PayLater, which offers a buy now, pay later (BNPL) scheme that may involve interest charges. This study aims to analyze the application of the qard (loan) contract in Shopee PayLater based on MUI Fatwa No. 4 of 2022 and its role in protecting Muslim consumers. Using a qualitative-descriptive method, this research specifically examines Shopee PayLater as a case study of digital BNPL services in Indonesia. Data were collected from secondary sources, including MUI fatwas, OJK regulations, and academic journal articles, complemented by doctrinal analysis of Islamic legal principles. The sampling unit of analysis focuses on the contractual scheme of Shopee PayLater, particularly the qard element, late payment fees, and their alignment with sharia provisions. Relevant fatwas, regulations, and academic discussions on Islamic finance are examined to assess whether Shopee PayLater complies with sharia principles. The analysis employed content analysis to extract recurring themes of sharia compliance, and legal comparison was conducted between the Shopee PayLater mechanism and the stipulations of MUI Fatwa No. 4 of 2022. The study also evaluates potential legal risks and the protections available to Muslim consumers engaging in BNPL transactions. The findings show that while Shopee PayLater adopts a qard-based structure in line with Fatwa No. 4 of 2022, additional service charges and late payment penalties may resemble practices close to riba. Evidence from MUI documents and consumer protection regulations indicates that these charges need strict regulation and transparency. Specifically, the study finds that Muslim consumers face legal uncertainty if the additional costs are not explicitly categorized as administrative fees rather than interest. The study concludes that, although Shopee PayLater offers financial flexibility, its compliance with Islamic principles remains conditional: only by restructuring the cost elements to eliminate riba-like features can it fully align with sharia standards. This underscores the need for stronger monitoring by regulators and clearer fatwa-based guidelines for fintech providers. This research contributes to the field of Islamic finance by providing insights into the relationship between Islamic financial principles and digital lending services. Furthermore, it offers valuable guidance for policymakers, financial institutions, and consumers seeking sharia-compliant financial solutions.