The Role of Administrative Governance in Developing Electronic Payment Systems and Enhancing Trust in Prepaid Payment Cards: "An Analytical Study of the Libyan Case"

Abstract

Libya has been experiencing a chronic cash liquidity crisis for several years, which has directly affected the efficiency of the banking sector and daily economic activities. This situation has led to excessive reliance on cash, the expansion of the informal market, and a decline in transparency. Under these circumstances, electronic payment systems—particularly prepaid payment cards—have emerged as a practical solution that can reduce pressure on cash liquidity and support the transition toward a digital economy and financial inclusion. However, the success of these tools does not depend solely on the availability of technology; rather, it largely relies on the effectiveness of banking management and the implementation of administrative governance principles such as transparency, accountability, oversight, risk management, and compliance with laws and regulations. This study highlights the importance of administrative governance as a framework that regulates the relationship between management and stakeholders, ensuring efficient decision-making and the optimal use of resources. International literature and reports issued by organizations such as the OECD and the World Bank confirm that governance enhances trust and institutional stability. In the banking context, trust represents a fundamental factor for the adoption of electronic payment systems, as it is closely linked to security levels, data protection, transparency of procedures and fees, as well as the presence of effective legislation and regulatory supervision that limit fraud risks. The study also demonstrates that the quality of electronic banking services and their ease of use have a direct impact on customer satisfaction and loyalty. Moreover, Libyan banks face several obstacles that hinder the spread of electronic payments, including weak technical and telecommunications infrastructure, limited availability of point-of-sale terminals, low banking awareness, and a lack of trust in banking systems. The study adopts a descriptive-analytical approach to examine the reality of governance and electronic payments in Libya, concluding that the development of electronic payment systems requires comprehensive administrative reform based on governance principles, along with investment in infrastructure, staff training, and strengthening the legislative and regulatory framework to ensure the success of digital transformation and reduce reliance on cash