This paper utilizes an advanced Network Data Envelopment Analysis (DEA) model to examine the impact of mobile payment on the efficiency of Taiwan banking industry. Inheriting the literature, we separate the banking operation process into two stages, namely profitability and marketability. Mobile payment is then considered as the core factor in the second stage. Our paper discovers network DEA model can effectively enhance the analysis of banking industry’s efficiency, and mobile payment has a notable impact on Taiwan banking industry. Regarding the profitability stage, there is only one efficient bank in 2019 and 2022, respectively. These banks also perform better in terms of “mobile payment production”. In the marketability stage, there is also only one bank in 2021 and one bank in 2022, that can reach to unique efficiency score. This indicates many banks attempt to increase earnings per share through investing in mobile payment services. However, the achievement still needs more wait. This leads to the fact that no bank can reach the ultimate overall efficiency. Within our sample, we also find that regarding promoting mobile payment services, Private Banks outperform Government Banks.

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