Muslim Consumer Protection in Buy Now Pay Later Transactions under Sharia Economic Law

Abstract

This study examines Muslim consumer protection in Buy Now Pay Later (BNPL) transactions from the perspective of Sharia economic law. The rapid growth of digital marketplaces has encouraged the use of BNPL services as an alternative payment method that offers convenience, flexibility, and wider access to consumer financing. However, this system also raises legal and ethical concerns, particularly regarding transparency, late-payment penalties, potential riba, gharar, consumer vulnerability, and the adequacy of legal protection for Muslim consumers. This research employs a normative juridical method with a conceptual and statutory approach by analyzing Islamic legal principles, Sharia economic law, consumer protection regulations, and fintech-related legal frameworks. The study finds that BNPL transactions may be considered permissible if they fulfill the principles of fairness, transparency, mutual consent, and the absence of prohibited elements such as riba, excessive uncertainty, and exploitative clauses. Consumer protection in BNPL must therefore ensure clear disclosure of costs, fair contractual terms, responsible financing, data protection, and effective dispute resolution mechanisms. The study emphasizes the need for stronger Sharia compliance standards in digital financing practices to protect Muslim consumers while supporting innovation in the Islamic digital economy.