RECONSTRUCTING BUY-NOW-PAY-LATER (BNPL) THROUGH MAQASID AL-SHARIAH: A CONCEPTUAL PAPER

Abstract

The Buy Now Pay Later (BNPL) financing model has emerged as a prominent innovation in global fintech, offering consumers short-term credit solutions that facilitate immediate purchases without conventional interest charges. While BNPL enhances financial accessibility and supports e-commerce growth, it raises significant ethical and financial concerns, including over-indebtedness, impulse spending, and regulatory gaps. These challenges are particularly pertinent in Muslim-majority markets such as Malaysia, where adherence to Shariah principles is critical. This concept paper adopts a qualitative and exploratory approach, reviewing academic literature, industry reports, and Shariah guidance to conceptualize the reconstruction of BNPL within the ethical framework of Maqasid al-Shariah. The study identifies key risks related to consumer welfare and ethical compliance and then proposes a conceptual model that aligns BNPL practices with the higher objectives of Shariah: faith (din), life (nafs), intellect (‘aql), lineage (nasl), and wealth (mal). The framework emphasizes responsible credit use, financial justice, and consumer protection, aiming to guide fintech innovators, regulators, and Islamic finance practitioners in developing Shariah-compliant and socially responsible BNPL solutions.