Zakat literacy and digital zakat payment: Evidence from Indonesia

The purpose of this study is to examine the relationship between an individual’s knowledge of zakat - the obligation for Muslims whose income reaches a certain level to give money to help the poor - and the intention to use an online platform for its payment. This is particularly important in the context of Indonesia with its Muslim population of more than 220 million populations spread over 17, 000 islands, yet with zakat collections currently accounting for only around 2% of its potential. This study utilizes the extended Unified Theory of Acceptance and Use of Technology (UTAUT) as a theoretical framework and employs a quantitative research approach using Structural Equation Modelling (SEM). Primary data is obtained through an online survey combined with a purposive sampling method involving 223 Indonesian Muslims who have used an online payment platform to pay zakat. The main result indicates that zakat literacy significantly influences the intention to use an online platform to pay zakat. Thus, higher literacy could potentially increase zakat collection. Additionally, performance expectancy, effort expectancy and facilitating conditions are found to be significant, while social influence is not found to be significant in influencing behaviours. This research is expected to contribute to the enrichment of digital zakat literature and to highlight factors that influence the intention to use online platforms to pay zakat, information which may be helpful to governments, zakat management organizations and other stakeholders.