truelayer.com Pros & Cons (from an Ethical Islamic Standpoint)

When evaluating truelayer.com through an Islamic ethical lens, the traditional “pros and cons” list takes on a different dimension.

Read more about truelayer.com:
truelayer.com Review & First Look

While the platform offers significant technological advantages and efficiency in payment processing, its alignment with Islamic principles is severely compromised by its clientele and lack of specific ethical screening.

The benefits primarily relate to the technological prowess and operational efficiency of the service, whereas the drawbacks are rooted in the direct and indirect facilitation of activities forbidden in Islam.

It’s crucial for Muslim users and businesses to understand that convenience and technological advancement do not supersede adherence to divine guidelines.

The absence of transparency on ethical filtering, particularly concerning industries like iGaming, renders the platform problematic for those seeking Sharia-compliant solutions.

Technological Advantages of TrueLayer

From a purely functional and technological perspective, TrueLayer offers several compelling features that could streamline financial operations.

• Instantaneity: Payments and payouts are processed almost instantly, which is a major upgrade over traditional banking transfers or card settlements.
• Reduced Fraud: Direct bank authentication, often through biometric verification, significantly reduces the risk of card fraud and chargebacks.
• Cost Efficiency: Bypassing card networks can lead to lower transaction fees for businesses, improving profit margins.
• Improved Cash Flow: Faster access to funds means businesses have better liquidity management.
• Enhanced User Experience: “Pay by Bank” simplifies the checkout process, requiring no card details entry, which can lead to higher conversion rates for merchants.

Concerns Regarding iGaming and Gambling Facilitation

This is arguably the most significant ethical red flag for TrueLayer.

The website explicitly promotes its services for the “iGaming” industry.

• Direct Support for Haram: Facilitating payments for online gambling is a direct involvement in an activity strictly forbidden in Islam (Qur’an 2:219, 5:90).
• Negative Societal Impact: Gambling leads to addiction, financial ruin, family breakdown, and social discord, all of which are contrary to Islamic values.
• Moral Complicity: Providing essential infrastructure for a forbidden industry makes the service provider complicit in its operations, even if they are not directly running the gambling platform.
• No Exclusion Policy: The lack of a clear statement refusing services to gambling platforms demonstrates a willingness to engage with such industries.
• Misuse of Funds: Funds transferred via TrueLayer for iGaming purposes would be used in a forbidden manner.

Ambiguity in Crypto Services

While cryptocurrencies themselves are a complex topic with varying scholarly opinions on their permissibility, TrueLayer’s general offering for “Crypto” without specifying the nature of the crypto activities is problematic.

• Speculation (Gharar): Much of crypto trading involves high speculation, which can be akin to gambling due to excessive uncertainty, a practice forbidden in Islam.
• Interest-bearing Products (Riba): Many decentralized finance (DeFi) protocols and crypto lending platforms involve interest, which is Riba and strictly forbidden.
• Underlying Assets: Some cryptocurrencies might be linked to or facilitate projects that are non-permissible (e.g., NFTs of haram content).
• Lack of Sharia Screening: There is no indication that TrueLayer screens the crypto businesses or activities they facilitate for Sharia compliance.
• Volatility Concerns: The extreme volatility of crypto markets often leads to significant losses, which goes against the Islamic principle of wealth preservation and ethical investment.

General Lack of Islamic Ethical Framework

Beyond specific industries, TrueLayer’s website, like many mainstream financial technology companies, shows no discernible awareness or adherence to Islamic ethical finance principles. truelayer.com Review & First Look

• No Sharia Board/Advisory: There is no mention of an external Sharia board or internal Sharia compliance department to vet their operations.
• Profit-First Model: The emphasis appears to be purely on increasing transaction volume and market share, without explicit consideration for the ethical source or use of funds.
• Universal Application: Their service is offered universally without apparent ethical filters for industries beyond standard legal requirements.
• Due Diligence Burden: The entire burden of ensuring Sharia compliance falls on the user, making it difficult for a Muslim to use their services with confidence.
• Risk of Unwitting Participation: Users might inadvertently become part of transactions that involve haram activities without explicit knowledge or control.

Integration and User Experience

Despite the ethical concerns, it’s worth acknowledging the technical strengths of TrueLayer.

• Developer-Friendly: Offers SDKs for iOS, Android, React Native, and plugins for major e-commerce platforms (WooCommerce, Shopify, Magento).
• Ready-Made UIs: Provides optimized user interfaces for both mobile apps and browsers, simplifying integration for businesses.
• Console for Merchants: A “powerhouse console” designed to help merchants kickstart integration and manage payments easily.
• Strong Support Resources: Documentation and a blog suggest a commitment to supporting developers and users.
• Customer Testimonials: The presence of positive testimonials from various businesses, including Freetrade and OakNorth Bank, indicates functional reliability and satisfaction among their existing clients.