Is it permissible to buy airtime in cash at a lower price and on credit at a higher price? 

Q. A mobile network offers airtime on credit. For e.g. if a person asks for R20 of airtime, he will be charged R25 when repaying it. But if he purchases the airtime in cash, he will be charged R20 for it. Is this Riba or is this permissible?

A. The transaction in reference is permissible and does not constitute Riba (interest). The price that the mobile network charges for the airtime when purchasing it on credit is higher than the cash price. There is no problem with this type of transaction as long as the cash and credit prices are fixed at the time of the transaction.

Allah Ta’ala Knows Best

Mufti Ismaeel Bassa

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