The Acceptance of Islamic Credit Card in Brunei

By Qaisar Ali, Hakimah Yaacob & Asma Salman

Abstract

The recent development in Islamic banking has uplifted the demand for Islamic banking products and services including Islamic credit card (ICC). The main focus of this study is to understand and analyse the factors influencing the acceptance of ICC in Brunei. The theory of reasoned action (TRA) was modified to categorise and determine the factors influencing the acceptance of ICC. Sample data were drawn from 210 Islamic bank customers through a convenience non-probability technique using a self-administrated questionnaire. Multiple regression analysis was performed to categorize the most influential factors. The findings revealed that subjective norms, media awareness and attitude were the most influential factors and had a significant positive impact on the acceptance of ICC. Furthermore, the perceived financial cost had an insignificant negative and reputation had an insignificant positive impact on the acceptance of ICC. The findings suggest the regulators, policy makers and Islamic bankers to enhance the awareness of ICC through electronic and social media to create a better reputation and image. The findings further suggest Islamic bankers to customise ICCs based on customers’ demographic characteristics to maximise ICC acceptance. This study contributes to the literature by filling the knowledge gap through empirical findings from a single country analysis based on ICC facility in Brunei.