The Role of Electronic Payment Methods in Reducing Credit Risk in Banks (A Field Study of Commercial Banks Listed on the Damascus Securities Exchange)

Abstract

The primary objective of this study is to investigate the role of electronic payment methods in reducing credit risk in the banking sector. To achieve this, a field study was conducted targeting 11 commercial banks listed on the Damascus Securities Exchange. Within this framework, electronic payment tools including mobile banking applications, electronic payment cards, and electronic fund transfers were treated as the independent variable, while bank credit risk was designated as the dependent variable.

   The researcher adopted a deductive approach as the overarching framework for reasoning, complemented by the use of a descriptive-analytical methodology. A structured questionnaire was developed as the primary tool for data collection and distributed to a convenient sample consisting of 128 participants. Of these, 119 responses were retrieved, with 110 deemed valid for statistical analysis. Data processing and interpretation were conducted using the Statistical Package for the Social Sciences (SPSS), version 26.

   The study yielded a number of findings, the most significant of which was the existence of a positive and statistically acceptable correlation between banks’ adoption of electronic payment methods and the reduction of credit risk. The correlation coefficient reached 0.80, while the coefficient of determination was 0.64, indicating that approximately 64% of the variance in credit risk mitigation can be attributed to the implementation of electronic payment cards in the banks examined.