The Effect of Using Electronic Payment Methods on the Profitability of commercial Banks An applied Study on Jumhouria Bank – Islamic Banking ,Gharyan Branch

Abstract

  This study aimed to investigate the impact of the use of electronic payment methods on the profitability of commercial banks in Libya in light of the rapid developments in information and communication technologies and the ongoing digital transformation within the banking sector. The study adopted a descriptive-analytical approach, and primary data were collected through a questionnaire distributed to a sample of employees at the Republic Islamic Bank – Gharyan Branch. The collected data were analyzed using the Statistical Package for the Social Sciences (SPSS) through a set of appropriate statistical techniques.

The study examined the impact of the use of electronic payment methods, the cost of their utilization, and the speed of electronic transaction processing on the profitability of commercial banks. The findings revealed a statistically significant positive effect of electronic payment methods on bank profitability through increasing the volume of banking transactions, attracting new customers, diversifying sources of income, and reducing operational costs.

Furthermore, the results indicated that the speed of processing electronic transactions contributes to enhancing customer satisfaction and improving the financial performance of banks. Based on these findings, the study recommends strengthening technological infrastructure, enhancing cybersecurity systems, and expanding the adoption of electronic banking services to support digital transformation and improve the efficiency and profitability of Libyan commercial banks.