The role of e-payments in enhancing financial performance: A case study of the Bank of Palestine

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The purpose of this paper is to explore electronic payments, which are considered one of the most important tools in financial technology. Hence, electronic payments play a great role in enhancing the financial performance of the Bank of Palestine. The study uses three dependent variables such as return on assets (ROA), return on equity (ROE) and earnings per share (EPS). The study methodology employs a descriptive and analytical approach to investigate the bank’s data during the period of 2010–2019. Hence, the findings show that electronic payment methods have an important impact on the bank’s financial performance, through the return on assets and equity indicators, which helps to reduce costs and thus increase profits. However, there is no statistically significant effect on the earnings per share. What is more, the Bank of Palestine uses a wide variety of electronic payment methods. Thus, the study suggests the necessity to increase the effectiveness of the information security from fraud risks, in addition to activating supervisory and regulatory authorities (such as the Palestinian Monetary Authority), to strengthen the application of electronic payment tools.

Acknowledgment
Special thanks to Palestine Technical University Kadoorie for their valuable and continuous support.

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    • Figure 1. Growth in using bankcards at the Bank of Palestine during the period of 2010–2019
    • Figure 2. The bank’s net profit during the period of 2010–2019
    • Figure 3. Financial performance indicators of the Bank of Palestine during the period 2010–2019
    • Table 1. The labels and measurement of variables
    • Table 2. Descriptive statistics
    • Table 3. Results of simple linear regression analysis of hypotheses
    • Conceptualization
      Bahaa Sobhi Awwad
    • Data curation
      Bahaa Sobhi Awwad
    • Formal Analysis
      Bahaa Sobhi Awwad
    • Investigation
      Bahaa Sobhi Awwad
    • Methodology
      Bahaa Sobhi Awwad
    • Resources
      Bahaa Sobhi Awwad
    • Validation
      Bahaa Sobhi Awwad
    • Visualization
      Bahaa Sobhi Awwad
    • Writing – original draft
      Bahaa Sobhi Awwad
    • Writing – review & editing
      Bahaa Sobhi Awwad