Digital Payments as Sustainable Banking Infrastructure: A Metaanalysis of Financial Performance Evidence

Abstract

Digital payment technologies appear to be reshaping banking operations, customer access, and transaction infrastructure, yet evidence regarding their association with banks’ financial performance remains heterogeneous. This meta analysis synthesises 38 empirical studies published between 2015 and 2024, covering 62,418 bank year observations across 24 countries. Using a random effects model, the study estimates a pooled standardised effect of d = 0.40, indicating a moderate positive association between digital payment adoption and bank financial performance, measured primarily through return on assets and return on equity. The subgroup analysis shows pooled effects for mobile banking and digital wallets are higher than that of internet banking, payment gateways and blockchain payments. The results of the meta regression also show that the size of the bank and its adoption levels have positive moderating effects, as does the regulatory facilitation of the adoption of these technologies. However, the use of longitudinal research design was found to be statistically insignificant. Tests for publication bias were inconclusive as the analysis was conducted on a subset of studies from the entire data set. The analysis leads to the conclusion that the technology of payments can contribute to the economic aspect of the sustainability process through the enhancement of the efficiency in banking processes and it is relevant for SDG 8 and 9. However the results do not provide any detailed information on environmental, social or cause and effects relationships.