DIGITAL ZAKAT MANAGEMENT AND ITS IMPACT ON POVERTY ALLEVIATION: AN EMPIRICAL STUDY ON EFFICIENCY AND TRANSPARENCY
Article Sidebar
October 9, 2025
April 25, 2026
-
Digital Zakat, Efficiency, Poverty Alleviation
Abstract
The increasing reliance on digital platforms has transformed various sectors, including charitable activities such as zakat management. Zakat, a key form of almsgiving in Islam, has been traditionally managed through physical channels, often leading to inefficiencies and a lack of transparency. The adoption of digital zakat management systems promises enhanced operational efficiency and greater transparency. This study aims to assess the impact of digital zakat platforms on poverty alleviation, focusing specifically on their efficiency and transparency in fund distribution. The research uses a mixed-methods approach, combining quantitative data from zakat platforms and qualitative interviews with stakeholders, including donors, recipients, and platform administrators. The findings reveal that platforms with faster distribution times and higher transparency ratings were perceived more positively by both donors and recipients, contributing to a greater sense of trust and satisfaction. However, challenges such as data security concerns and occasional discrepancies in fund allocation were noted. The study concludes that digital zakat platforms, when optimized for efficiency and transparency, can significantly enhance poverty alleviation efforts. It also highlights the need for standardization and improved regulatory frameworks to maximize their potential in addressing socio-economic disparities.
Full text article
References
Affandi, Purwaningsih, Y., Hakim, L., & Mulyaningsih, T. (2025). Interplay between poverty, poverty eradication and sustainable development: A semi-systematic literature review. Global Transitions, 7, 1–20. https://doi.org/https://doi.org/10.1016/j.glt.2024.11.001
Ahmed, H. (2024). Security tokens, ecosystems and financial inclusion: Islamic perspectives. International Journal of Islamic and Middle Eastern Finance and Management, 17(4), 730–745. https://doi.org/https://doi.org/10.1108/IMEFM-04-2024-0195
Al Mustofa, M. U., Shophia, S. P., Muhibbin, Z., Ardiantono, D. S., Mawardi, I., Widiastuti, T., Fahmi, A., & Windiani, W. (2025). Risk perception on intention to pay zakat via financial technology (fintech). Journal of Islamic Marketing, 16(12), 3559–3590. https://doi.org/https://doi.org/10.1108/JIMA-03-2024-0110
Alhammadi, S. (2023). Expanding financial inclusion in Indonesia through Takaful: opportunities, challenges and sustainability. Journal of Financial Reporting and Accounting, 23(6), 2738–2757. https://doi.org/https://doi.org/10.1108/JFRA-05-2023-0256
Alhammadi, S. (2025). Islamic finance as a driver for enhancing economic sustainability and innovation in the GCC. Journal of Science and Technology Policy Management, 17(1), 25–46. https://doi.org/https://doi.org/10.1108/JSTPM-11-2023-0206
Amuda, Y. J., & Al-Nasser, S. A. (2024). Exploring encounters and prodigies of Islamic banks in non-Muslim states: towards enhancing regulatory frameworks of Islamic banking system. International Journal of Law and Management, 68(2), 245–275. https://doi.org/https://doi.org/10.1108/IJLMA-11-2023-0250
Anwar, M. M., Battour, M., Purnamawati, A. M., & Ratnasari, R. T. (2023). The power of moral obligation and social support in enhancing intention to implement halal branding strategies in social enterprise. Social Enterprise Journal, 22(3), 590–620. https://doi.org/https://doi.org/10.1108/SEJ-11-2024-0184
Aziz, G., & Sarwar, S. (2023). Revisit the role of governance indicators to achieve sustainable economic growth of Saudi Arabia – pre and post implementation of 2030 Vision. Structural Change and Economic Dynamics, 66, 213–227. https://doi.org/https://doi.org/10.1016/j.strueco.2023.04.008
Bin-Armia, M. S., Armia, M. S., & Syarif, M. F. (2024). Economical rights versus God’s rights: criticising of the implementation Shariah economic in Indonesia. International Journal of Islamic and Middle Eastern Finance and Management, 17(6), 1267–1290. https://doi.org/https://doi.org/10.1108/IMEFM-01-2024-0054
Colbourne, R., Ejaz, L., Grinevich, V., Husain, S., & O’Farrell, D. (2024). Hybrid entrepreneurship in just transitions: Dealing with dilemmas facing ‘the other.’ Environmental Innovation and Societal Transitions, 53, 100924. https://doi.org/https://doi.org/10.1016/j.eist.2024.100924
de Oliveira, M. S., Steffen, V., de Francisco, A. C., & Trojan, F. (2023). Integrated data envelopment analysis, multi-criteria decision making, and cluster analysis methods: Trends and perspectives. Decision Analytics Journal, 8, 100271. https://doi.org/https://doi.org/10.1016/j.dajour.2023.100271
Ghaly, M., & al-Khatib, M. (2023). COVID-19 and Pandemic Ethics in the Islamic Tradition: An Introduction. Journal of Islamic Ethics, 7(1), 1–49. https://doi.org/https://doi.org/10.1163/24685542-20230096
Hasnat, M. A., Khandakar, H., Rahman, M. A., Islam, S. M. N., & Hasan, K. K. (2025). Capitalism in modern ignorance (jahilliyah): exploring Islamic alternatives to reshape human behaviour and provide solutions for the 21st century. International Journal of Islamic and Middle Eastern Finance and Management, 18(4), 975–991. https://doi.org/https://doi.org/10.1108/IMEFM-08-2024-0393
Hj Mohamad, S. N. A. @ B., Binti Haji Shahlehi, S. F., Binti Haji Abd Talip, H. S. N. S., & Haji Shahlehi, S. (2025). The positive impacts of Sadaqah (Sedekah) toward business sustainability: a systematic literature review. International Journal of Sociology and Social Policy, 46(1), 143–166. https://doi.org/https://doi.org/10.1108/IJSSP-12-2024-0639
Jannat, S. (2025). Crowdfunding dilemmas: understanding the roadblocks in Bangladesh’s SME’s financial landscape. International Journal of Innovation Science, 17(4), 840–857. https://doi.org/https://doi.org/10.1108/IJIS-03-2024-0066
Jatmiko, W., Haidlir, B. M., Azizon, A., Laksmono, B. S., & Kasri, R. (2023). Intergenerational analysis of cash waqf behavior: lessons learned from Indonesia. Journal of Islamic Accounting and Business Research, 15(4), 590–618. https://doi.org/https://doi.org/10.1108/JIABR-03-2022-0086
Kasmon, B., Ibrahim, S. S., Daud, D., Raja Hisham, R. R. I., & Dian Wisika Prajanti, S. (2024). FinTech application in Islamic social finance in Asia region: a systematic literature review. International Journal of Ethics and Systems, 41(1), 213–237. https://doi.org/https://doi.org/10.1108/IJOES-07-2023-0155
Khanchel, I., Lassoued, N., & Khiari, C. (2025). Tripartite dynamics: Financial inclusion, microfinance, and financial technology (N. B. T.-E. of M. P. Apergis Financial Markets and Banking (First Edition) (ed.); pp. 204–214). Academic Press. https://doi.org/https://doi.org/10.1016/B978-0-44-313776-1.00335-4
Kholidah, H., Fianto, B. A., Herianingrum, S., Ismail, S., & Mohd Hidzir, P. A. (2024). Do Islamic fintech lending promote microenterprises performance in Indonesia? Evidence of difference-in-difference model. International Journal of Islamic and Middle Eastern Finance and Management, 18(1), 224–246. https://doi.org/https://doi.org/10.1108/IMEFM-08-2023-0310
Laila, N., Sukmana, R., Hadiningdyah, D. I., & Rahmawati, I. (2024). Critical assessment on cash waqf-linked sukuk in Indonesia. Qualitative Research in Financial Markets, 17(4), 849–879. https://doi.org/https://doi.org/10.1108/QRFM-11-2023-0291
Maksum, M., Muflih, M., Rohman, M. M., Injaz, F., & Sanrego, Y. D. (2025). Why do women micro-entrepreneurs adopt Islamic digital financing? Perspectives from UTAUT, trust and Sharia compliance. Journal of Islamic Marketing, 16(12), 3509–3539. https://doi.org/https://doi.org/10.1108/JIMA-03-2023-0087
Megat, P. A., Al-Shaghdari, F., Bin Ngah, B., & Abdelfattah, S. S. (2024). Assessing the predictive benefits of Waqftech smart contracts on corporate waqf crowdfunding among Malaysian enterprises. Journal of Islamic Marketing, 15(5), 1303–1325. https://doi.org/https://doi.org/10.1108/JIMA-08-2023-0262
Menne, F., Hasiara, L. O., Setiawan, A., Palisuri, P., Tenrigau, A. M., Waspada, W., Juliana, J., & Nurhilalia, N. (2024). Sharia accounting model in the perspective of financial innovation. Journal of Open Innovation: Technology, Market, and Complexity, 10(1), 100176. https://doi.org/https://doi.org/10.1016/j.joitmc.2023.100176
Mustaffa, N. M., Wan Jusoh, W. N. H., Lateh, N., Ahmad, S., Ahmad, M. H. S., & Adnan, A. A. (2025). Framework construct on zakat studies for institutional development: a systematic literature review. Journal of Islamic Marketing, 17(4), 1491–1517. https://doi.org/https://doi.org/10.1108/JIMA-06-2024-0232
Nofianti, L., Mukhlisin, M., & Irfan, A. (2024). Cash waqf innovation in Islamic financial institutions and its governance issues, case studies: Indonesia, Malaysia, Türkiye. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-12-2023-0420
Okolo, C. V., Susaeta, A., & Okorie, D. I. (2025). On the relationship between internet usage and technological innovation: Insight from world panel data. Sustainable Futures, 9, 100403. https://doi.org/https://doi.org/10.1016/j.sftr.2024.100403
Prasojo, P., Muhfiatun, M., Syarifah, L., & Rosman, R. (2025). Conformity of Indonesian Islamic bank CSR practices with maqashid shariah rules. Journal of Islamic Marketing, 16(9), 2596–2616. https://doi.org/https://doi.org/10.1108/JIMA-01-2024-0047
Ramaian Vasantha, N., Bossman, A., & Iqbal, N. (2025). Empowering energy access: the influence of Islamic banking and Fintech on sustainable energy in MENA. International Journal of Islamic and Middle Eastern Finance and Management, 19(2), 324–348. https://doi.org/https://doi.org/10.1108/IMEFM-01-2025-0019
Raza, M. W. (2024). Macro level literature analysis of Islamic banking and finance in Covid-19 crisis. Journal of Islamic Accounting and Business Research, 17(1), 1–25. https://doi.org/https://doi.org/10.1108/JIABR-03-2023-0082
Rodin, G., Feldman, A., Trapani, D., Skelton, M., Unger-Saldaña, K., Essue, B., Pihlak, R., Walshe, C., Rosa, W. E., Banegas, M. P., Zambrano-Lucio, M., Salah Daood, R., Aggarwal, A., Dewachi, O., Shapiro, G. K., Munisamy, M., Rajah, H. D. A., Atreya, S., Dhyani, V. S., … Sullivan, R. (2025). The human crisis in cancer: a Lancet Oncology Commission. The Lancet Oncology. https://doi.org/https://doi.org/10.1016/S1470-2045(25)00530-3
Rofik, M., Boulanouar, Z., Yuli, S. B. C., & Wardani, D. T. K. (2025). Revisiting the impact of Islamic finance on economic growth: a decomposition analysis using Indonesia as a testing ground. International Journal of Islamic and Middle Eastern Finance and Management, 18(4), 765–786. https://doi.org/https://doi.org/10.1108/IMEFM-06-2024-0288
Rofiqo, A. (2025). Determinants of compliance to pay zak?t: an experience during the COVID-19 in Indonesia. Journal of Islamic Marketing, 17(3), 793–813. https://doi.org/https://doi.org/10.1108/JIMA-04-2023-0127
?ahin, H. (2025). Assessing Islamic finance development through a new index: an alternative approach. International Journal of Islamic and Middle Eastern Finance and Management, 19(1), 241–268. https://doi.org/https://doi.org/10.1108/IMEFM-12-2024-0588
Sunarsih, S., Hamdani, L., Rizal, A., & Yusfiarto, R. (2023). Motivational factors to paying zakat through institutions: a multigroup analysis of urban and suburban muzakki based on digital payment scheme. Journal of Islamic Accounting and Business Research, 16(6), 1148–1173. https://doi.org/https://doi.org/10.1108/JIABR-12-2022-0333
Tanchangya, T., Tafsirun, U., Islam, M. S., Islam, N., Chakma, J., & Esquivias, M. A. (2025). Role of financial technology in small-scale natural Resource management through sustainable financing in Venezuela. Social Sciences & Humanities Open, 11, 101636. https://doi.org/https://doi.org/10.1016/j.ssaho.2025.101636
Widiastuti, T., Al-shami, S. A., Mawardi, I., Zulaikha, S., Haron, R., Kasri, R. A., Mustofa, M. U. Al, & Dewi, E. P. (2024). Capturing the barriers and strategic solutions for women empowerment: Delphy analytical network process. Journal of Open Innovation: Technology, Market, and Complexity, 10(3), 100345. https://doi.org/https://doi.org/10.1016/j.joitmc.2024.100345
Yamaludin, S. M., Syed Alwi, S. F., Rosman, R., & Khamis, M. R. (2023). The role of zakat distribution on the sustainability of gharimin (genuine debtors) in Islamic financial institutions in Malaysia. Journal of Islamic Accounting and Business Research, 15(6), 988–1008. https://doi.org/https://doi.org/10.1108/JIABR-01-2023-0004
Yumna, A., Marta, J., & Yanuarta Re, R. (2024). The impact of waqf-based microfinance program on clients’ well-being during COVID-19 pandemic: empirical evidence from Indonesia. Journal of Islamic Accounting and Business Research, 17(3), 596–617. https://doi.org/https://doi.org/10.1108/JIABR-02-2022-0040
Yusgiantoro, I., Pamungkas, P., & Trinugroho, I. (2024). The sustainability and performance of Bank Wakaf Mikro: waqf-based microfinance in Indonesia. International Journal of Islamic and Middle Eastern Finance and Management, 17(1), 86–101. https://doi.org/https://doi.org/10.1108/IMEFM-06-2022-0233
Zafar, M. B., & Jafar, A. (2025). Waqf over a century: innovation and tradition in shaping social equity and sustainable development. International Journal of Sociology and Social Policy, 46(3), 448–472. https://doi.org/https://doi.org/10.1108/IJSSP-12-2024-0625
Authors
Copyright (c) 2026 Moch. Kalam Mollah, Ali Khan, David Martin
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
