Visa’s Interest-Free Card and What It Means for Muslim Investors

Visa has started introducing interest-free credit card products in Muslim-majority markets, marking an important shift in how global payment networks adapt to Islamic finance principles. These cards follow Shariah rules by avoiding riba (interest) and replacing it with permissible fees or profit-sharing structures agreed upon in advance.

Where Visa is Launching Interest-Free Cards

In Bangladesh, Visa has partnered with Islami Bank Bangladesh Limited to launch an interest-free credit card that meets Islamic banking requirements. The card allows users to pay for purchases without accruing interest, instead charging a small fixed service fee or using a profit-rate model that complies with Shariah. This is designed to serve the country’s large Muslim population, many of whom avoid traditional credit cards because of interest charges.

Similar initiatives have appeared in other Muslim-majority regions. In the United Arab Emirates, several banks including Emirates Islamic and Dubai Islamic Bank already offer Visa-branded cards structured for Islamic compliance. In Malaysia, Maybank and CIMB work with Visa to provide Shariah-compliant cards that avoid interest while offering rewards and installment payment options aligned with Islamic finance rules.

While these programs are still market-specific, they demonstrate Visa’s willingness to collaborate with Islamic financial institutions to expand the availability of halal financial tools.

Could This Come to the United States?

The U.S. has one of the largest Muslim populations in the Western world, and demand for Islamic finance products is steadily growing. While no U.S. bank has yet launched a Visa interest-free card, there is no legal barrier to doing so. For this to happen, Visa would need a partner bank willing to design and manage the product in compliance with both Shariah standards and U.S. banking regulations. Given the rise of Islamic mortgage and investment products in the U.S., such a move is possible if market demand becomes more visible.

Visa’s Financial Strength

Visa’s expansion into Islamic finance comes at a time when its core business is performing exceptionally well. In its latest quarterly results, Visa reported a 14% increase in revenue to $10.2 billion and a 23% jump in earnings per share, driven by strong domestic spending and double-digit growth in cross-border payments.

The Wall Street Journal highlighted Visa’s ability to grow even in a competitive payments landscape, while Reuters noted that its cross-border transactions have surged as travel and ecommerce volumes rebound globally.

This financial stability makes Visa a reliable partner for banks looking to introduce new products, including Shariah-compliant credit cards.

ISRI: How Visa Scores on Islamic Socially Responsible Investing

For many Muslims, choosing where to invest is not just about whether a company’s business model is halal — it’s also about whether that company upholds values aligned with Islamic ethics. Islamic Socially Responsible Investing (ISRI) evaluates companies on factors such as human rights, social justice, environmental impact, and governance. This is especially important for Muslims who want to ensure they are not supporting organizations that contradict their moral and religious principles.

Visa’s ISRI ethics score is rated Excellent, meaning it ranks highly in areas like ethical governance, avoiding harmful industries, and maintaining responsible business conduct. For Muslim investors who research whether a company’s actions align with their values, a high ISRI score offers an additional layer of confidence beyond Shariah compliance.

Is Visa Halal to Invest In?

From a Shariah compliance perspective, Visa passes the required business activity screens with a B+ rating and is considered halal to own.

The business screening focuses on income sources, debt levels, and non-permissible activities. Visa’s low level of non-halal income means Muslim investors generally have lower purification requirements when selling the stock.

For Muslim investors, this combination of financial strength, ethical governance, and low purification makes Visa a cleaner choice than many other global fintech companies.

Why This Matters

Visa’s move into interest-free credit card offerings is not just a marketing strategy—it is a recognition of the size and growth of the global Islamic finance market, now valued at over $4 trillion.

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