SHARIA COMPLIANCE-CREDIT CARD EXPOSURE AND UTILIZATION IN THE GROWING DIGITAL ECONOMY

Abstract

Many cashless payment tools have been introduced to Indonesia market in the form of cards to electronic money. Sharia compliance-credit card is one of traditional electronic payment tools that are provided by only two Islamic finance institutions among many in Indonesia. The increase of Sharia compliance-credit card transactions from time to time may lead banks to be exposed to non-performing risk. Customers’ behaviors are varying in utilizing Sharia compliance-credit card, and their behavior may cause unpredicted results on card’s performance. Therefore, the purposes of this study are: 1) To identify the behavior of Sharia compliance-credit card’s users and 2) To analyze the factors influencing the behavior of Sharia compliance-credit card’s users. Primary data is gathered through distributing questionnaires with a total sample of 170 respondents. The data is analyzed by employing Structural Equation Modeling. This research shows that gender, age, and education influence perceived behavior control; and, expenditure influences subjective norms. Customers’ attitudes, subjective norms, and perceived behavior control are proven to influence customer intentions, where customers’ intentions, perceived behavior control, and income influence customers’ behavior towards using Sharia compliance-credit card. For further sustainable inclusive growth, the issuers should pay attention on education for specific audiences.