Digital Debt Normalisation: A Challenge for Islamic Economics in the Fintech Era

Technological convenience has changed the way Generation Z manages their finances. Through PayLater services and online loans, purchasing goods can now be done without having the money at that moment. Unfortunately, this ease is beginning to normalise a culture of debt among young people. Many young individuals are using digital debt not for urgent needs, but to fund their lifestyle. Consequently, a ‘buy now, pay later’ habit emerges, which risks causing financial problems down the line. When bills pile up, the convenience that initially helped turns into a burden. From an Islamic economics perspective, debt is permissible if used wisely and does not cause harm. However, Islam also teaches to avoid consumerist behaviour, wastefulness, and transactions involving usury. Therefore, the use of digital financial services must be accompanied by awareness and responsibility. This phenomenon shows that the biggest challenge for Generation Z is not a lack of financial access, but the ability to exercise self-control amidst the various conveniences available. Technology should be a tool to improve welfare, not a path to debt dependency. Ultimately, sharia financial literacy is becoming increasingly important so that the younger generation can utilise fintech innovations intelligently, healthily, and in accordance with Islamic values. True financial freedom lies not in the ease of borrowing, but in the ability to manage finances wisely.