Shares in a PSP and Admin Services Company

Everyday Islamic Finance Business and Career Questions
#1

As Salaam Wa Alaykum

There are 2 parts to this questions relating to two companies:

  1. a Payments Services Company
  2. a Financial and Admin Services company

Part one:

I am part of a consortium that has established a payment service company, i.e. payment service provider (“PSP”). The PSP will be an agent between the merchant and the acquirer. So the PSP, signs up merchants and has agreements with acquirers where the merchants transactions will pass through.

Typically, the flow of transactions will be as follows:

  • Consumer uses a card to purchase item on a website.

  • The buyer will be directed to our gateway

  • Our gateway will send credit card information of the buyer to the Acquier

  • The acquirer will approve the transaction and pay the merchant, but this will go through the PSP (aka the gateway)

  • So the acquirer, will pay the PSP, net of fees, and in turn the PSP will settle the merchant net of their fees.

As we are developing the business, most or all of the merchants that we are onboarding are in the online gaming and gambling industry.

Will it be permissible to work for this company for a salary and obtain shares.

Part 2

In addition, there’ll be another company (Admin Service company) that will provide the PSP with financial and admin services. This company will invoice the PSP each month for services rendered i.e. for the day-to-day running.

Is it permissible to work for this services company, get paid a salary, and obtain shares in this company?

#2

Wasalam

May Allah bless you.

Why are most of them in the gambling industry? Does it mean you are creating a specific payment system that can mainly be used by gambling companies?

#3

It is a general online payments system that can cater for all online or e-commerce transactions. We set this up with a couple of partners that are not muslim.

This is a new company, and currently, through a sales lead, the merchants that have been secured are online gaming and gambling. So there’s a focus on that at the moment, which is causing discomfort to me.