QUESTION
Previously, based on Irsyad Fatwa #638 stated that ‘SPay Later’ (also known as Shopee Pay Later) was not Shariah-compliant. However, it has now received Shariah-compliant certification. What is the update on the rulings regarding this matter?
ANSWER
SPay Later is now permissible because the policy that previously contained Riba’ al-Qard has been removed.
EXPLANATION
SPay Later, which operates on “Buy Now, Pay Later” concept, was initially deemed non‑Shariah compliant due to the processing fees and late fees imposed for delayed payments.
However, Shopee Pay has now declared that its SPay Later instalment plan has been certified as Shariah-compliant by a firm registered with the Securities Commission. Additionally, they have modified their late payment policy.
Earlier, late payments incurred a penalty of 1.5% of the outstanding amount per month. Now, instead of imposing a late payment charge, SPay Later states:
“If the payment for your SPayLater is not settled within the designated time frame, a late charge will be applied, which could result in the suspension of both your SPayLater and Shopee accounts. Late charge is the amount of the bill principal or RM10, whichever is lower. In alignment with Shariah principles, any charges beyond the actual incurred cost will be directed as a donation to a charitable organisation endorsed by the Shariah Advisor.”
Furthermore, the processing fee for instalments has been revised to 1.5% per month based on the purchase amount, compared to the previous 1.25%.
Thus, if late payment charges are no longer imposed, SPay Later will no longer be exposed to elements of riba. This is because, as we stated earlier, any debt that includes additional charges due to late payments falls under the category of Riba al-Qard.
Therefore, it should be understood that the ruling is established based on the existence of the illah (reason or cause) for it, just as the unlawful status of an action is determined by the reason for its prohibition. If there is no reason for the prohibition, then the ruling does not apply. This aligns with the Islamic legal maxim:
الْحُكْمُ يَدُورُ مَعَ عِلَّتِهِ وُجُودًا وَعَدَمًا
Meaning: "A ruling revolves with its illah, whether it exists or does not exist."
CONCLUSION
The improved policies and certification by the Shariah Advisory Council (SAC) of the Securities Commission Malaysia (SC) made the usage of SPay Later in the Shopee app permissible in the Shariah rulings.
Nevertheless, we advise the public always to be cautious of debt as it can be burdensome. Abu Hurairah RA narrated that the Prophet SAW said:
نَفْسُ الْمُؤْمِنِ مُعَلَّقَةٌ بِدَيْنِهِ حَتَّى يُقْضَى عَنْهُ
Meaning: “A believer’s soul is held back due to their debt until it is settled.”
(Narrated by al-Tirmidhi and Ibn Majah)