INSTITUTE OF BUSINESS AND TECHNOLOGY

Prospects of Islamic Credit Cards in Pakistan

Prepared By: Sadaf Oad (Bm-25088) (BmShazia Bashir (Bm-25069) (BmAsad Mazhar (Bm-25065) (Bm-

SADAF OAD

Introduction


Islamic Credit Card- Saadiq. Card-

Islamic Credit Card

  

Background of Islamic Credit Card. Bai-alBai-al-Inah Tawarruq

SHAZIA BASHIR

Differences between Islamic and Conventional Credit Cards

Conventional
y

Islamic
y

Non- Shariah Compliant.

Shariah Compliant

Interest is variable, depending on the outstanding amount

No interest is charged. Bank is compensated with a fixed monthly fee

None Compounding profit.

Compounding profits.

Differences between Islamic and Conventional Credit Cards

Conventional
y

Islamic
y

There are no such restrictions on items that can be purchased

The purchase of alcohol, tobacco, gambling, pork, and sexually-related items are forbidden No Money Lending.

Money Lending.

Purpose of Research Objective of Research



To identify the level of awareness among the customers. To identify what level of perception Islamic credit cards carry amongst Pakistani masses.

Research Methodology


Population
 

All bank account holders. Minimum Age 19 years.

Sampling Size
 

200 Respondents. Geographically Restricted to Karachi.

Asad Mazhar

Findings Analysis Of Islamic Credit Card

Findings
1. 2.

3.

4.

Owner-ship of Credit Card. Awareness/Knowledge Of Islamic Credit Card Promotion of conventional vs. conventional credit card. Willingness to own Islamic Credit Card

OwnerOwner-ship of Credit Card ?

40%

60%

Type of Credit Card Ownership?

10%

3% 42%

44%

Awareness/Knowledge of Islamic Credit Cards (Age)

Awareness/Knowledge of Islamic Credit Cards (Monthly Income) ?

Promotion of Conventional vs. Islamic Credit Card ?

Willingness to Own Islamic Credit Card ?

70% 60% 50% 40% 30% 20% 10% 0%

Males

Females

Conclusion


Severely low knowledge regarding Islamic credit cards. Majority of people are willing to own/switch. Most of consumers have a negative perception about Islamic Credit Card.

Recommendations


Banks should come up with more promotional campaigns. Banks should develop a program so as to clear the misconceptions amongst most consumers. This will help improving the perception.