Is the PayPal Credit Service For Purchasing From The Apple Store Shariah Compliant?
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
The PayPal Credit plan to purchase from the online Apple store is not Shariah compliant.
The Fiqh (jurisprudence of the answer):
From an Islamic law perspective, the financing provided by PayPal Credit has a fixed interest rate. Paypal charge a fixed fee as the cost of financing. Charging a fee in lieu of a loan is a form of Ribā which is explicitly prohibited in the Qur’an.
Loans are given to the disadvantaged and needy. Exploiting the need of the poor to satisfy one’s financial greed has been expressly prohibited. Offering such a service is prohibited and receiving such a service without exceptional circumstances and necessity is also prohibited.
The wisdom of the law:
Note: The law is not dependent on wisdom and benefits. It is possible that not all said benefits are found at a given time. The absence of any or all benefits will not change the ruling or law. The law is not deduced nor determined through benefits. The benefits of the law are enumerated to complement rationale minds.
Ribā transactions like the above create a debt society. Debt has been earmarked as one of the major causes of socio-economic failure. Furthermore, such transactions promote the practice of exploiting the needy. The need of the needy is commodified, commercialised and exploited out of greed. Such practices destroy equality and disproportionately widens the gap between the rich and the poor. Taking credit with interest encourages the rich to exploit further. Therefore, Islam has prohibited the Ribā transactions and practices altogether.
And Allah Ta’ālā Alone Knows Best
Mufti Faraz Adam al-Mahmudi,
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