The Shift to Electronic Payment Methods in Commercial Banks: Benefits and Challenges

Digital Banking

This study examines the transition to electronic payment methods in commercial banks, focusing on their benefits and the challenges hindering their widespread adoption. With rapid technological advancements, electronic payments (e.g., mobile payments, digital wallets, and online transfers) have become essential for enhancing financial transaction efficiency, security, and customer experience. However, despite their advantages, several obstacles persist, including technological infrastructure gaps, cybersecurity risks, regulatory ambiguities, and resistance from certain customer segments. Using a mixed-methods approach, the study analyzes survey data from 45 respondents (customers and employees) across three Libyan commercial banks (Al-Jumhouria, Al-Wahda, and National Commercial Bank). Statistical tools (SPSS) were employed to test hypotheses, revealing that electronic payments significantly improve transaction speed, operational efficiency, and customer satisfaction. However, challenges such as frequent technical failures, insufficient security measures, and lack of customer awareness were identified as critical barriers. The study concludes with recommendations for banks and policymakers to strengthen digital infrastructure, enhance cybersecurity frameworks, and promote financial literacy to accelerate the adoption of electronic payments.

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