The Effect of Islamic Digital Payments on Muslim Customers Purchase Decision Through Perceived Value in Brunei Darussalam

Abstract

The rapid growth of digital financial technology in Islamic economies has transformed consumer transaction behaviour, including in Brunei Darussalam, where Islamic digital payment systems are increasingly adopted by micro, small, and medium-sized enterprises as part of a cashless, Sharia-compliant financial ecosystem. Despite this development, limited empirical research explains how Islamic digital payments influence Muslim customer purchase decisions, particularly through the mechanism of perceived value. This study proposes a model examining the effect of Islamic digital payments, measured by perceived ease of use, transaction security, trust, and sharia compliance assurance, on Muslim customer purchase decisions through perceived value, which consists of functional, emotional, and social or religious value dimensions. The objective of this research is to analyse the direct and indirect relationships among these variables in the context of MSMEs in Brunei Darussalam. A quantitative approach will be employed using survey data collected from Muslim consumers and analysed through Structural Equation Modelling to test the proposed hypotheses. The study is expected to demonstrate that perceived value significantly mediates the relationship between Islamic digital payments and purchase decisions. The findings are anticipated to contribute to Islamic fintech literature and provide practical implications for MSMEs and policymakers in strengthening Sharia-compliant digital payment adoption.