Abrehe Mehari2025-12-102025-09-24https://repository.mu.edu.et/handle/123456789/1077The main objective of the study was to examine the effect of electronic payment systems on financial performance of wegagen bank. The study employed both descriptive and explanatory research design by applying both quantitative and qualitative approaches for which the primary data were collected from lower and higher officials of Wegagen bank through questionnaire and interview respectively. Whereas, the secondary data were collected from the bank’s audited financial and system reports. The study used both descriptive and econometric analysis methods. The findings of the study shows that all the electronic payment systems; volume of transactions in ATM, POS, Cards, Mobile and Internet banking have negative significant effect on the performance of ROA and ROE of the bank. This implies that these electronic payment systems have less contribution on the financial performance of the bank. Finally, the study recommended that the bank should create customer initiation and awareness, update the systems and applications of all electronic payment systems, increase the service charges and fees on each services, enhance training and developments to both the customers and employees and introduce technical customer-supporting employees. Moreover, to further improve financial metrics like Return on Assets (RoA) and Return on Equity (RoE), the bank could consider introducing additional digital banking flexible loan products and services that create arrange of customizable loan products that customers can tailor to their financial needs, including options for repayment schedules and interest rates like subscription-based banking services, introduce electronic-commerce solutions, green banking initiatives, microfinance and small business support, customer loyalty and rewards programs, online financial education and resources.enATMPOSCardsInternet BankingMobile BankingROAROEWegagen bankThesis