INVESTIGATING THE FACTORS THAT INFLUENCE ACCEPTANCE OF ISLAMIC CREDIT CARD AS A NEW BANKING SERVICE

Abstract

Islamic banking expansion in the world is known as one of the most influential financial incident
during the last three decades. These Shariah based banking institutions are necessitated to remain
innovative in order to achieve higher market share of spirited banking industry in the world.
Accordingly, Islamic credit card as a new innovation has been issued by numerous Islamic as
well as dual banking institutions, nonetheless, it seems that this Islamic innovation services has
not achieved adequate market share nor adopted by bank customers. Therefore, this conceptual
study is an attempt to identify a theoretical framework which on its basis adoption and usage of
Islamic credit card be forecasted. In view of that, perceived attributes of innovation which is
originated from Rogers’ Diffusion of Innovation theory along with trust as well as demographic
factors as imperative indicators of adoption has been applied to provide a new way of Islamic
credit card adoption among bank clientele. This study justify the applicably of Diffusion theory
into a completely new context which is Islamic credit card adoption. The bank managers and
policy makers regarding Islamic banking facilities may consider the study outcome to have better
strategy concerning Islamic credit card issuance as new Islamic financial innovation.
Keywords: Islamic banking, Islamic Credit Card, Banking, Rogers’ Diffusion of Innovation
Theory, Malaysia, consumer policy