E-commerce and Islamic financial intermediation
DOI link for E-commerce and Islamic financial intermediation
E-commerce and Islamic financial intermediation book
This chapter examines some of the concerns and recommends solutions that could further enhance Islamic e-commerce platforms, especially from the Islamic point of view. It discusses the nature, processes and models of e-commerce and also examines the types of e-commerce platforms. The chapter identifies the link between Islam and e-commerce and also discusses practical case studies, Shari‘ah-compliant mobile payments and e-commerce solutions by Islamic banks. In enhancing Islamic financial intermediation, certain Islamic principles are relevant to e-commerce. E-commerce is business occurring over networks which use non-proprietary protocols that are conducted via the internet. E-commerce involves the use of electronic communications and digital information-processing technology in business transactions to create, transform and redefine relationships for value creation among the stakeholders. The prevalent method of payment for e-commerce is the use of credit cards, which usually involves charging of interest, thereby contradicting Islamic principles.