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Fatwa CenterAn item that involves Riba in PayPal and Alipay user agreement
Question
Assalamo alikom When I read PayPal and Alipay user aggrement I found thoes items are not clear to me: PayPal 4.1 Balances. If you hold a balance, PayPal will hold your funds in pooled accounts separate from its corporate funds, and it will not use your funds for its operating expenses or for any other corporate purposes. PayPal will not voluntarily make your funds available to its creditors in the event of bankruptcy. You will not receive interest or other earnings on the amounts in your balance. PayPal may receive interest on amounts that PayPal holds on your behalf. You agree to assign your rights to PayPal for any interest derived from your funds. Alipay (Escrow) 9. General Provisions 9.6 Alipay shall have the right to assign this Agreement (including all of our rights, titles, benefits, interests, and obligations and duties in this Agreement) to any of our affiliates and to any successor in interest. Alipay may delegate certain of Alipay rights and responsibilities under this Agreement to independent contractors or other third parties. User may not assign, in whole or part, this Agreement to any person or entity. So is this deal are Riba (interest) ? kind regards
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad 
is His slave and Messenger.
This condition is considered a forbidden Riba (usury and/or interest) condition if the company deposits the balance of its customers in Riba-based banks, and this is what appears from the question.
This company explicitly states that it receives interests from the amounts deposited on behalf of the client. Under this agreement, the client agrees to allocate to the company his rights in those interests resulting from his balance (money deposited in the bank). Of course these interests are not resulting from an Islamic Mudhaarabah or a legitimate transaction whereas it is saved in a Riba-based bank as we have mentioned. For more benefit on Mudhaarabah, please refer to Fatwa 148103.
The fact that the owner of the money does not take the interests resulting from that for himself does not exempt him from sin, whether he takes the interest himself or that he leaves it to the company under that condition.
For more benefit, please refer to Fatwa 94389.
Allaah Knows best.
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