This study aims to measure the impact of digital payment indicators—specifically the Real-Time Gross Settlement (RTGS) system and the Interbank Retail Payment System (IRPSI)—on the financial performance of Iraqi commercial banks, as assessed through profitability and liquidity ratios, for the period 2018–2024. The research problem lies in questioning the extent to which these systems have succeeded in transcending their operational role to become an actual driver of improved financial performance, or whether they remain merely an alternative technical channel for executing transactions without structural impact. To answer this, the study adopted a descriptive-analytical approach and the Autoregressive Distributed Lag (ARDL) model.
The results showed a positive and significant effect of retail payment systems (IRPSI) on profitability indicators, reflecting their effectiveness in maximizing operating returns, while no significant long-term effect of these systems was found on liquidity levels, indicating that they are subject to independent managerial and monetary policies. The analysis also revealed instability in the equilibrium relationship of short-term liquidity (LASTL) over the long term, despite the presence of a short-term correction mechanism (40%) that confirms banks’ ability to restore profitability equilibrium after adopting digital technologies. The study concluded that these platforms currently serve as a modern tool to facilitate transactions for existing investors but have not yet succeeded in attracting high financial solvency that contributes to the development of the market’s structural size.