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Sharia fintech: Startups race to tap Indonesia growth by aligning with Islam – Source Reuters Tech News

JAKARTA (Reuters) – Like millions of other Indonesians, Gandi Iswara had for years carried a wad of currency notes for dropping into donation boxes after prayers at mosques in suburban Jakarta.

FILE PHOTO: A volunteer collects alms boxes with QR codes and stacks them on a cart after Friday prayers at Istiqlal mosque in Jakarta, Indonesia, February 14, 2020. REUTERS/Willy Kurniawan

From late last year, though, the 35-year-old engineer switched to a more convenient option: whipping out his mobile phone, firing up a digital payment app from Google-backed GoPay and tapping the QR code stickers that are now affixed to the boxes.

His digital conversion took some time, as Iswara initially held the view that all rewards and discounts offered by e-wallets conflicted with Islam.

“At first, I thought e-wallets resulted in usury, which is forbidden by Islam. But after a while I found them convenient in daily life,” he said.

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Source Reuters Tech News

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