A conceptual framework for adoption of Islamic Credit Card in Malaysia

Abstract

Islamic banking scheme refers to a banking system which effort to achieve social and economic advancement by taking into consideration right, wrong and ethics in daily financial and transactional operations. The provided potential benefits by Islamic banking system have extended its application around the globe. Moreover, Islamic banking system has emerged as a crucial component of financial and banking system in context of Malaysia which has been able to donate to economic progress of this country. Presently, it is necessary that Islamic banks in context of Malaysia provide as many number as facilities possible so as to remain competitive and profitable in competitive banking industry. Islamic credit card introduction as that expand operations portfolio of banks and lead more benefits seems to be one of these varied services offering by Islamic institutions. However, despite issuance of Islamic credit card by different banks in Malaysia, there is high probability that this Islamic banking service remains unused or unnoticed by bank customers. Consequently, this paper proposes a conceptual framework to explore factors that affect Islamic credit card adoption and usage by bank customers in Malaysia. The presented theoretical framework of this study would modify trust and attitude as two important construct in numerous banking as well as adoption studies in the area of Islamic banking services adoption and particularly Islamic credit card. Compelling information and insight in regards with Islamic credit card usage and adoption in context of Malaysia would be provided by finding of this study. Besides, the information provided by this study would serve as
a basis for more future studies in area of Islamic credit card. Therefore, the theory that has been offered as framework of current research could be generalized in other Islamic banking and services studies context such as Islamic home financing or Islamic personal financing. Likewise, Islamic banks decision makers and other Islamic credit card issuers could of prime importance in extending finding of the study in order to have better future regarding offering their Islamic credit card.