Fintech & Ecommerce

Traditional Islamic Donations Now Accepted Via SoftPOS in Malaysia

Malaysian Zakat collection centre has begun piloting a SoftPOS solution that enables charity employees to accept contactless donations on their Android NFC smartphones

SoftPOS Malaysia donations

Image: motionarray.com

The government-mandated Zakat Collection Centre of the Federal Territories Islamic Religious Council (PPZ-MAIWP) in Malaysia has piloted a software-only point-of-sale (softPOS) solution to accept card charitable payments via a tap on the phone.

The new tool will enable those wanting to contribute their zakat with MyDebit (ATM cards) powered by Payments Network Malaysia Sdn Bhd (‘PayNet’). The designated collectors will accept contactless charitable donations on their mobile devices at PPZ-MAIWP’s main office, the Al-Syakirin Mosque and the Jalan Masjid India pedestrian shopping street in Kuala Lumpur.

Muslims In Malaysia make traditional zakat al fitr (also called fitrah or fitrana) donations to support charitable food distribution during the month of Ramadan. This donation is compulsory for qualifying adult Muslims who have food in excess of their needs. Many Islamic Zakat collection services already allow making donations online. However, contactless card payment acceptance is an innovation that further expands the ways the younger cashless generation can fulfil their Islamic duties.

To enable the donations solution, PPZ-MAIWP is using the Fasstap softPOS technology developed by Malaysia-based paytech provider Softspace. It can accept payments above the Malaysian contactless limit of RM250 (US$56) that require verification with a PIN.

This year, Insya-Allah PPZ-MAIWP targets a total zakat fitrah collection of RM13.8 million ($3.11 million) throughout Ramadan. In the future, the organization aims to extend the use of Fasstap to other types of zakat harta, including zakat pendapatan (income), zakat emas (gold), zakat simpanan (savings), etc.

In addition, Fasspay plans to develop a zakat-friendly payment ecosystem which will be generating official PPZ-MAIWP receipts for records and tax exemption purposes.

Last month, the creator of the Fasstap solution, Softspace raised the largest Series B by Malaysian Startup, attracting investment funds in the amount of $ 31.5 million. The company intends to use the funds to expand the scope of its activities at the international level and implement measures to attract new customers.

Nina Bobro

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https://payspacemagazine.com/

Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.