DIGITAL PAYMENTS AND FIRM PROFITABILITY: DO SECTORAL DIFFERENCES MATTER? EVIDENCE FROM JORDAN

Abstract This study will explore how digital payments services impact the profitability of the Jordanian sectors include: (Banks, Services and Industrial). Through using quantitative scores methods, the profitability of this study will use (ROE, Tobin's Q), while Digital Payments (DPS) will use the total transactions volumes of the three popular services in Jordan include: (eFAWATEER, JoMoPay and CliQ), all the data of this study gathered from sustainability reports and annual reports of Jordanian companies while Digital Payments data from Jordan Payments and Clearing Company (JoPACC) database. The findings revealed a significant positive correlation between DPS on financial performance. However, the main result of this study greater adoption of digital payment services is positively and significantly associated with firm profitability (ROE and Tobin’s Q), with governance and bank-level digital integration delivering the largest and most robust gains; effects vary by sector (environmental gains strongest in industry, social gains stronger in services, and digital-payment returns largest for banks). Other variables, including firm size, debt ratios, and CO2 emissions, significantly impacted on ROE and Tobin’s Q.