IDEAS home Printed from https://ideas.repec.org/a/spr/ijsaem/v15y2024i6d10.1007_s13198-023-02201-x.html
   My bibliography  Save this article

Analysis of financial performance with regard to digital payment: a case of HDFC bank

Author

Listed:
  • Shilpa Agarwal

    (Amity University)

  • Priyanka Malik

    (Amity University)

  • Shalini Gautam

    (Delhi Metropolitan Education)

Abstract

The present research paper examines digital payment cards, which are regarded as one of the most important instruments for digital payment innovation. The study analyzed the impact of digital payment methods on bank’s performance, particularly EPS including the pandemic which has not been considered in the previous studies. The present study makes use of two independent variables and four dependent variables: debit cards (DC), credit cards (CC), operating profit margin (OP), return on assets (ROA), earnings per share (EPS), and return on equity (ROE). The methodology of the research study examines bank data from 2015 to 2022 (including the period of the pandemic) through regression analysis using the E-view 12 software. The findings demonstrate that the ROA and ROE of banks are significantly impacted by the use of debit cards and credit cards. However, they do not significantly affect the earnings per share. Further, debit cards impact OP margin significantly, and no significant impact of credit cards on operating profit. The study demonstrates that strengthening the use of digital payment tools requires both activating supervisory and regulatory authorities as well as improving the efficacy of data security against risks. The study provides insight into how digital payment cards improve financial performance, especially when analyzing EPS and selecting the beneficial investment strategy.

Suggested Citation

  • Shilpa Agarwal & Priyanka Malik & Shalini Gautam, 2024. "Analysis of financial performance with regard to digital payment: a case of HDFC bank," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 15(6), pages 2085-2096, June.
    • Handle: RePEc:spr:ijsaem:v:15:y:2024:i:6:d:10.1007_s13198-023-02201-x
    DOI: 10.1007/s13198-023-02201-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13198-023-02201-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13198-023-02201-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Mazana, Reginald & Rupere, Taurayi & Kabanda, Gabriel, 2016. "An assessment of the impact of self-service technology (SST) on firm performance: Case study of a bank in Zimbabwe (2009–13)," Journal of Payments Strategy & Systems, Henry Stewart Publications, vol. 10(1), pages 96-112, March.
    2. Yang, Fan, 2019. "The impact of financial development on economic growth in middle-income countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 59(C), pages 74-89.
    3. Dong, Jichang & Yin, Lijun & Liu, Xiaoting & Hu, Meiting & Li, Xiuting & Liu, Lei, 2020. "Impact of internet finance on the performance of commercial banks in China," International Review of Financial Analysis, Elsevier, vol. 72(C).
    4. Berger, Allen N, et al, 2004. "Bank Concentration and Competition: An Evolution in the Making," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(3), pages 433-451, June.
    5. Francisco Liébana-Cabanillas & Iviane Ramos de Luna & Francisco Montoro-Ríos, 2017. "Intention to use new mobile payment systems: a comparative analysis of SMS and NFC payments," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 30(1), pages 892-910, January.
    6. Ghaith N. Al-Eitan & Bassam Al-Own & Tareq Bani-Khalid, 2022. "Financial Inclusion Indicators Affect Profitability of Jordanian Commercial Banks: Panel Data Analysis," Economies, MDPI, vol. 10(2), pages 1-13, January.
    7. Peterson K. Ozili, 2018. "Impact of digital finance on financial inclusion and stability," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 18(4), pages 329-340, December.
    8. Imlak Shaikh & Mohd Anwar, 2023. "Digital bank transactions and performance of the Indian banking sector," Applied Economics, Taylor & Francis Journals, vol. 55(8), pages 839-852, February.
    9. Josiah Aduda & Nancy Kingoo, 2012. "The Relationship between Electronic Banking and Financial Performance among Commercial Banks in Kenya," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 1(3), pages 1-6.
    10. Philip Elikplim Agomor & Joseph Mensah Onumah & King Carl Tornam Duho, 2022. "Intellectual capital, profitability and market value of financial and non-financial services firms listed in Ghana," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 19(4), pages 312-335.
    11. Ozili, Peterson Kitakogelu, 2018. "Impact of Digital Finance on Financial Inclusion and Stability," MPRA Paper 84771, University Library of Munich, Germany.
    12. Kenneth S. Rogoff, 2017. "Response to Jeffrey Rogers Hummel's Review of The Curse of Cash," Econ Journal Watch, Econ Journal Watch, vol. 14(2), pages 164–173-1, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Yunsong & Jiang, Aiqing & Zhang, Songlin & Chen, Weihong, 2024. "Traditional finance, digital finance, and financial efficiency: An empirical analysis based on 19 urban agglomerations in China," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    2. Isaac Appiah-Otoo & Na Song, 2021. "The Impact of Fintech on Poverty Reduction: Evidence from China," Sustainability, MDPI, vol. 13(9), pages 1-13, May.
    3. Minli Yu & Fu-Sheng Tsai & Hui Jin & Hejie Zhang, 2022. "Digital finance and renewable energy consumption: evidence from China," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-19, December.
    4. Xin, Xinyi & Zhang, Anquan & Liu, Lu, 2024. "Study on the influence of Internet finance on urban household savings rate: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 90(C), pages 45-61.
    5. Wu, Xin & Jin, Tianhe & Yang, Keng & Qi, Hanying, 2023. "The impact of bank FinTech on commercial banks' risk-taking in China," International Review of Financial Analysis, Elsevier, vol. 90(C).
    6. Saleh F. A. Khatib & Ernie Hendrawaty & Ayman Hassan Bazhair & Ibraheem A. Abu Rahma & Hamzeh Al Amosh, 2022. "Financial Inclusion and the Performance of Banking Sector in Palestine," Economies, MDPI, vol. 10(10), pages 1-15, October.
    7. Dongjing Chen & Xiaotong Guo, 2023. "Impact of the Digital Economy and Financial Development on Residents’ Consumption Upgrading: Evidence from Mainland China," Sustainability, MDPI, vol. 15(10), pages 1-25, May.
    8. Guillaume Edou Tchidi & Wei Zhang, 2025. "Mediating effect of financial inclusion on FinTech innovations and economic development in West Africa: Evidence from the Benin Republic," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(2), pages 1032-1048, April.
    9. Song, Quanyun & Li, Jie & Wu, Yu & Yin, Zhichao, 2020. "Accessibility of financial services and household consumption in China: Evidence from micro data," The North American Journal of Economics and Finance, Elsevier, vol. 53(C).
    10. Liuwu Chen & Guimei Zhang, 2024. "Research on the impact of digital financial inclusion and environmental regulation on industrial structure upgrading-based on spatial Durbin model analysis," PLOS ONE, Public Library of Science, vol. 19(11), pages 1-26, November.
    11. Wang, Yi-Ran & Ma, Chao-Qun & Ren, Yi-Shuai, 2022. "A model for CBDC audits based on blockchain technology: Learning from the DCEP," Research in International Business and Finance, Elsevier, vol. 63(C).
    12. Gallego-Losada, María-Jesús & Montero-Navarro, Antonio & García-Abajo, Elisa & Gallego-Losada, Rocío, 2023. "Digital financial inclusion. Visualizing the academic literature," Research in International Business and Finance, Elsevier, vol. 64(C).
    13. Decai Tang & Ziqian Zhao & Jiannan Li & Valentina Boamah, 2024. "Research on coupling coordination degree of digital finance and economic resilience in the Yangtze River Economic Belt," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 120(15), pages 14279-14309, December.
    14. Peterson K. Ozili & David Mhlanga & Rym Ammar & Marwa Fersi, 2024. "Information Effect of Fintech and Digital Finance on Financial Inclusion during the COVID-19 Pandemic: Global Evidence," FinTech, MDPI, vol. 3(1), pages 1-17, January.
    15. Surjeet Dalal & Bijeta Seth & Magdalena Radulescu & Carmen Secara & Claudia Tolea, 2022. "Predicting Fraud in Financial Payment Services through Optimized Hyper-Parameter-Tuned XGBoost Model," Mathematics, MDPI, vol. 10(24), pages 1-17, December.
    16. Ozili, Peterson K, 2020. "Financial inclusion: a strong critique," MPRA Paper 101813, University Library of Munich, Germany.
    17. Rayenda Khresna Brahmana & Maria Kontesa & Josephine Tan-Hwang Yau, 2024. "Does information seeking moderate the relationship between financial loan inclusion and Fintech P2P lending?," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(1), pages 171-185, March.
    18. Ren, Xiaohang & Zeng, Gudian & Zhao, Yang, 2023. "Digital finance and corporate ESG performance: Empirical evidence from listed companies in China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    19. Wang, Weilong & Xiao, Deheng & Wang, Jianlong & Wu, Haitao, 2024. "The cost of pollution in the digital era: Impediments of air pollution on enterprise digital transformation," Energy Economics, Elsevier, vol. 134(C).
    20. Girish Garg & Mohd Shamshad & Nikita Gauhar & Mosab I. Tabash & Basem Hamouri & Linda Nalini Daniel, 2023. "A Bibliometric Analysis of Fintech Trends: An Empirical Investigation," IJFS, MDPI, vol. 11(2), pages 1-15, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ijsaem:v:15:y:2024:i:6:d:10.1007_s13198-023-02201-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.