The rise of fintech and digital financial services like “PayLater” and online lending are reshaping how Generation Z manages their finances in Indonesia, allowing purchases without immediate funds. This ease of access is presenting challenges to the established Islamic finance (Sharia) sector. The increasing normalization of digital debt is a key concern, as traditional Sharia principles emphasize responsible lending and avoidance of excessive debt. Experts suggest Sharia finance must adapt to compete with the convenience and speed of fintech platforms. This adaptation requires innovation in product offerings and a re-evaluation of risk management strategies. The growth of digital credit also raises broader economic questions about financial literacy and potential debt traps among young consumers. Ultimately, the future of Sharia finance hinges on its ability to integrate with, or effectively differentiate itself from, the rapidly evolving fintech landscape.