OPERATIONALIZING RIBA IN FINTECH PAYLATER SYSTEMS: A RIBA INDICATOR MATRIX BASED ON SUBSTANCE-OVER-FORM ANALYSIS IN ISLAMIC FINANCE

Abstract

The rapid expansion of fintech PayLater systems in Indonesia has introduced deferred digital credit models embedded in e-commerce platforms, raising critical concerns regarding their compatibility with Islamic legal principles, particularly the prohibition of riba. Existing studies often rely on binary halal–haram classifications, which are insufficient to capture the hybrid and multilayered structure of PayLater mechanisms. This study aims to develop a structured analytical framework for identifying riba indicators in fintech PayLater systems. Using a doctrinal–conceptual legal research design, the study extracts classical fiqh muʿāmalah principles and translates them into observable indicators through a substance-over-form (ḥaqīqat al-ʿaqd) approach. These indicators are integrated into a Riba Indicator Matrix covering fee structures, repayment mechanisms, contractual transparency, and risk allocation. The results show that PayLater systems frequently exhibit riba-related characteristics, including time-linked charges, de facto lending structures, contractual opacity, and asymmetric risk distribution. These findings indicate that Sharia compliance cannot be assessed solely through formal contract classification but requires a multidimensional diagnostic approach. This study contributes by proposing a novel analytical tool that supports regulators, fintech providers, Sharia advisers, and Muslim consumers in systematically evaluating potential Sharia non-compliance in digital financial products.