Analysis of PayLater Law from the Perspective of Contemporary Fiqh al-Mu‘āmalah (A Study on the Elements of Ribā and Contracts)

Abstract

The rapid development of financial technology has led to various innovations in digital payment systems, one of which is the PayLater service that allows consumers to purchase goods or services first and pay later in installments. This convenience has made PayLater a popular financial instrument, especially within e-commerce ecosystems. However, its implementation raises legal concerns from the perspective of Islamic jurisprudence (fiqh muamalah), particularly regarding the presence of riba (usury), the contractual structure, and the imposition of late payment penalties. This study aims to analyze the legal status of PayLater based on contemporary fiqh muamalah principles. This research employs a library research method with a normative-analytical approach by examining classical and contemporary fiqh literature, academic journals, and fatwas issued by the Indonesian National Sharia Council (DSN-MUI). The findings indicate that PayLater practices may involve riba when additional charges are imposed due to deferred payments, as well as late penalties that benefit lenders. In terms of contract, PayLater may be classified as qardh (loan) or bai‘ bi at-taqsith (installment sale), depending on the transaction structure. Therefore, the permissibility of PayLater depends on contract mechanisms, cost transparency, and adherence to justice principles in transactions.