The preference of Muslim young generation in using digital zakat payment: Evidence in Indonesia

Abstract

This study aims to analyze the behavior of digital zakat payments in Indonesian Muslim youth. This research is using multinomial logit by dividing three alternative zakat payment media, namely digital payment, cash, or using both media with 306 respondents. The research results show that perceived usefulness, ease of use, and risk affect intentions to use digital zakat payments. The other variables such as continuity and trust don’t have an impact on intention. Similar results were also obtained for intentions to pay zakat in cash. The implications of these results indicate that zakat management organizations must improve features on digital payment platforms to make it easier for people to pay zakat. Zakat management organizations must adapt to technological developments. This study offers new insight about the intention of muslim youth generation paying zakat through digital platform.

Understanding muzaki adoption of digital zakat payments in Indonesia

“…The intention of transacting on online platforms was due to the ease and cost of use associated with electronic money, which is cheaper when compared to physical cash and not only cannot be counterfeited but can also be counterfeited (Arif et al, 2023). Then, continuous use intention is the customer's willingness to use the same product or service, which is done automatically, repeatedly, and frequently (Muhammad & Saad, 2016).…”

Revamping Tradition With Tech: Guiding Innovation in Zakat for Social Good

“…Emerging technologies, including blockchain, artificial intelligence, and mobile platforms, offer a promising avenue to revitalize and strengthen zakat systems. 6 These technologies, if thoughtfully implemented, have the potential to address longstanding challenges in zakat management. Blockchain technology can encode zakat distribution rules into smart contracts, providing an immutable ledger of fund flows and enhancing transparency.…”

“…12 In the Gulf region, pioneering crowdfunding apps have simplified giving for tech-savvy youth. According Al Arif et al (2023) for instance, an mobile platform increased zakat donations among young professionals in its first year by enabling seamless recurring payments and transparent impact reporting. Such realworld examples validate technology's potential while also revealing important lessons for effective and ethical implementation.…”

Word of Mouth or Online Services: What is the Best Determinant of Muzakki’s Preference in Selecting Zakat Agency?

“…Zakat institutions should recognize muzakki behaviors related to habits, lifestyle, and income. For instance, Muslim young generation is more inclined to use transfer systems or other technologies for zakat digital payments (Arif et al, 2023). Zakat institutions need to take the initiative to provide better service to muzakki.…”