Determining a conceptual framework for adoption of Islamic Credit Card in context of Malaysia

Abstract

The introduction of Islamic banking system in the last years of twenty century have created a new way of applying banking affairs on the basis of Islamic principles. Scholars believe that the scheme is stable in its nature and would enhance the economic development of countries that applied the system. Due to high competition in banking industry of Malaysia, Islamic banks are competitively innovating new products in order to have higher market share and remain competitive. One of the financial products that have been offered by some Islamic as well as dual banks is Islamic credit card. This Islamic product needs to be marketed to better position Islamic banks with diversity portfolio of products. Therefore, this conceptual paper intends to provide a framework that influence different groups of bank customers in the adoption and usage intention of Islamic credit card. The presented framework of this study is based on the perceived attributes of Rogers (2003) Innovation Diffusion Theory. Whilst the trust and attitude in the area of adoption studies has been justified as major determinants in regards with the adoption of Islamic credit card in context of Malaysia, current study extends useful determinants for future research. The findings of the study would be useful for managers as well as decision makers in expanding a better future for Islamic financial instruments.