Non-Muslim Firms In ZPay Only As Technology Providers - Zakat Selangor

KUALA LUMPUR, March 6 (Bernama) -- The involvement of non-Muslim-owned companies in the ZPay digital platform is limited to providing technology infrastructure and not as zakat collection agents.

In a statement today, the Selangor Zakat Board (Zakat Selangor) said ZPay is the official application developed as a cashless zakat payment platform to facilitate Muslims in fulfilling their obligation more quickly, safely and systematically.

“To develop and operate this digital facility, Zakat Selangor appoints technology providers based on their technical expertise and system security requirements,” it said.

ATX Distribution Sdn Bhd was appointed to develop the system and maintain the ZPay application, while GKash serves as the payment gateway integrated by ATX to process digital transactions through real-time authorisation.

In addition, GKash functions as the technical infrastructure linking the payer’s banking institutions with the ZPay system and does not have any contractual appointment as a collection agent with Zakat Selangor.

Zakat Selangor said the responsibility for the collection and distribution of zakat is carried out fully by Zakat Selangor together with amil (zakat collector) assistants who are officially appointed by the Selangor Islamic Religious Council (MAIS).

The statement said zakat payments are managed through a dedicated shariah-compliant account regulated according to Zakat Selangor’s agreements and financial procedures to ensure smooth transactions, efficient processing, and prompt distribution of remuneration to amil assistants without compromising the integrity of the zakat fund.

Any transaction processing charges and payments to payment channel providers are based on system service costs allocated under the amil management, while the amount of zakat paid by contributors is retained in full as zakat funds without any commission deduction.

“From the perspective of Islamic law, the use of financial transaction facilities provided by payment channel providers, including non-Muslim companies, is permissible in line with the principles of fiqh muamalat under the concept of Ijarah (service leasing),” it said.

According to Zakat Selangor, digital payment methods do not affect the payer’s intention, do not compromise, nor affect the validity of the zakat payment, in line with the decision of the Selangor Fatwa Committee Meeting on Oct 30, 2019, which ruled that zakat payments through digital channels such as e-wallets and QR codes are permissible under Islamic law.

“The implementation of digital payment facilities by Zakat Selangor undergoes shariah scrutiny and compliance with prevailing legal rulings. Every service innovation is implemented within the framework of Islamic law and strict shariah governance.

“Zakat Selangor remains committed to ensuring that all zakat collection and distribution activities are carried out transparently, with integrity, and in compliance with Islamic law and guidelines set by MAIS,” the statement also said.

 -- BERNAMA