Abstract: Electronic Banking has been widely used in developed countries and is rapidly expanding in developing countries. In fact in Ethiopia were started to use electronic payment system, however, cash is still the most dominant medium of exchange, and electronic payment systems are at an embryonic stage and face different challenges.The main objectives of the studies are identifying the challenges and prospects of e-banking payment in Ethiopia. Under these studies the researchers were used primary and secondary source of data.to collect the necessary data the researchers were used stratified sampling and simple random sampling techniques.