Electronic Payment Transactions and Sustainable Growth in the Banking Sector: Evidence from Jordan

Abstract: This study examines how electronic payment transaction (EPT) utilization contributes to sustainable growth in the Jordanian banking sector. Drawing on Innovation Diffusion Theory, the study develops and empirically tests an integrated adoption?performance framework linking regulatory compliance, customer awareness, usability, and security measures to EPT utilization and subsequent sustainable growth outcomes. Data were collected from 112 managerial decision-makers across 13 Jordanian banks and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that customer awareness and usability are the strongest predictors of EPT utilization, followed by regulatory compliance and security measures. Furthermore, EPT utilization exerts a substantial positive effect on sustainable growth, indicating that digital payment institutionalization functions as a strategic capability rather than merely an operational tool. The study extends Innovation Diffusion Theory by connecting adoption determinants to organizational-level performance outcomes and offers actionable guidance for banking executives and policymakers seeking to leverage digital payment systems to enhance long-term competitiveness and sector resilience in emerging markets.