What is Syariah Banking

It is undeniable that information and communication technology (ICT) has changed many things in business. The existence of ICT has also increasingly influenced the way business activities are financed via online, known as financial technology (fintech)-based peer-to-peer (P2P) lending companies. This chapter is based on a study which aims to explore the use of e-commerce by small businesses, represented by micro and small enterprises (MSEs), and the role of P2P lending companies in financing MSEs in Indonesia. As an exploratory investigation, it adopts a descriptive analysis. It analyses secondary data and primary data collected from interviews with randomly selected P2P lending companies and owners of MSEs that have been granted loans from these companies. The results suggest that the use of e-commerce by MSEs in Indonesia is still very low. Although national data is not available yet because it is a new phenomenon, this chapter suggests that the emergence of fintech, especially the P2P lending category, will expand MSEs access to funding from formal sources.