AI-Driven Personalisation in Digital Payments: Examining Its Impact on Customer Trust

Digital India programme over a decade shown an upward performance by setting a benchmark. It is a flagship initiatives of the Government of India. It has digitally empowering the society and digital economy. Digital economy is an economic activities enhanced with the digital transformation using the digital computing tools. It provided various opportunities in the Banking and Fintech sectors. In current scenario Artificial Intelligence (AI) playing a very significant pivotal role by integrating the technology in all the sectors. It is enhancing the opportunities for the service provider and customer. Due to the rapid expansion of digital payment ecosystems, it has transformed the way how a consumers conduct their everyday financial transactions for purchasing their requirements either through online shopping i.e. e-commerce or visiting the store personal and using the digital banking or digital payment. In India, the digital payment especially using Unified Payments Interface (UPI) now has become a very important component of the digital financial ecosystem. Alongside this growth, the payment service providers are progressively integrating with the Artificial Intelligence (AI) technology to personalise their customer experiences. This is providing an enhance features through transaction recommendations to the customers with amazing discount features or offers in the payments using the digital payments. It further enables the customers in identifying their spending insights and intelligent alerts and adaptive customer support. This conceptual research proposes to examine the relationship between AI driven personalisation and customer trust in digital payment systems. The study propose to integrate from the perspectives of adopting the model Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) with the trust theory. The proposed model considers AI personalisation, perceived usefulness, perceived relevance, transparency as among the key explanatory variables, with customer trust as the principal dependent construct. Behavioural intention and continuance intention are considered as potential outcomes of trust. The expected findings may provide very useful insight in the domain of digital banking, digital payment segment of the banks, fintech companies, and payment service providers to improve the trustworthy for the customer and responsible AI enabled payment ecosystems.