Does Electronic Payment Services Create Value to Bank Performance? Evidence from Southeast Asia

This study examines the nexus between four electronic payment channels’ transaction values and bank performance of Malaysia, Singapore Thailand for 2010–2020. We find that, impact credit charge card’s value on banks’ return equity (ROE) is significantly positive across various econometric specifications, including firm fixed effect panel regression, two-way clustering method generalised moment. Instead, impacts other three channels (e-money, debit card internet mobile banking) are negative but not significance all specification. These suggest that only economically relevant to shareholders. further add improves operating income, while related revenue growth banks. In additional analysis, we e-money, card, banking negatively influencing relationship income ROE. summary, our implies majority services offered by banks sustainable in long run.