Analysing shari’ah compliance in buy now pay later models : a comparative study of Shopee and Lazada

Abstract

Buy Now, Pay Later (BNPL) services have gained wide adoption in Malaysia’s e-commerce sector, particularly through platforms such as Shopee and Lazada, yet their compliance with shari’ah principles remains debated. This study examines the shari’ah compliance of Shopee Pay Later and Lazada Pay Later by focusing on three main aspects: the prohibition of ribā (interest), the avoidance of gharar (uncertainty), and the application of appropriate shari’ah contracts (takyif fiqhī). The study adopts a qualitative approach based on library research, publicly available online materials, and comparative analysis, as full BNPL contractual details are not publicly disclosed. It analyses fee structures, contractual relationships, and late payment mechanisms with reference to classical Islamic contracts such as bayʿ al-muʾajjal, murabaḥah, ijārah, wakalah, and qarḍ. The findings show that Shopee Pay Later, which has obtained shariʿah certification from Amanie Advisors, offers clearer contractual terms and greater transparency, whereas Lazada Pay Later lacks formal shari’ah certification and poses higher compliance risks, particularly regarding interest-related charges and penalty mechanisms. This study contributes by developing a structured analytical framework for assessing shari’ah compliance in BNPL models and by offering practical recommendations for regulators and industry players to support the development of shari’ah -compliant BNPL practices in Malaysia