Nagad, a popular mobile financial service provider, has come up with Islamic merchant account to facilitate transactions for Muslim users adhering to Islamic Shariah principles.
This type of account can ensure Shariah-compliant transactions and deposits, providing confidence to both customers and entrepreneurs. The service has gained significant traction within just three days of its launch.
As the country’s first and only mobile service provider, Nagad offers Islamic mobile financial services independently regulated by a Shariah Supervisory Committee.
“Nagad Islamic” allows users to easily manage interest-free and Shariah-compliant personal accounts, aligning with their religious values and principles. Funds in this account are securely maintained in several Islamic banks offering Islamic banking services, thus safeguarding users from receiving interest or engaging in transactions not approved by Islam. Earlier, customers would face challenges in making payments using religiously acceptable methods. Now, the introduction of Islamic merchant accounts by Nagad addresses such challenges, marking a significant milestone in the popularity of MFS.
After verification of the information and trade licence, Nagad authorities will provide Islamic merchant accounts.
A business can open a single account against a trade licence. The switching from a regular merchant account to an Islamic merchant account will be introduced soon for the existing users.
When a customer using Islamic merchant account completes a transaction, the payment is directly deposited into an Islamic bank account adhering to Shariah principles and then transferred to the merchant's bank account.
The entire fund in the Islamic Merchant Account is managed following Islamic and Shariah-compliant practices, supervised by a Shariah Supervisory Committee.
Mohammad Aminul Haque, executive director of Nagad Ltd. and member of Nagad Islamic Shariah Supervisory Committee, said, “We want every Muslim to live according to Islamic Shariah principles. In our religion, interest is considered forbidden. Therefore, we operate these accounts in a way that supports our religious discipline.”
