In continuation of the findings of previous studies on the relationship between digital finance and financial stability, especially in emerging economies, this study came to research the relationship between digital finance through digital payment technology and banking stability. In the Gulf Cooperation Council countries, digital finance was measured by (total digital payments as a percentage of GDP, number of ATMs per 100,000 people, debit card penetration rate index), and measuring banking stability with (z-score index), using the cross-sectional data model (The econometric Model of Panel Data) The results indicated that there is a positive relationship between the digital payment indicators and the banking stability index, through the presence of a positive, statistically significant and moral relationship between the total digital payments, the prevalence of debit cards, and the number of ATMs per 100,000 people—banking stability index in the GCC countries.

Digital finance, financial technology, digital commerce, banking stability