AI-Driven Personalization in Digital Payment Platforms and Its Impact on Consumer Trust and Continued Usage Intention

Abstract

Digital payment platforms have revolutionized financial transactions by providing increased convenience, speed, and accessibility. The word “Artificial Intelligence (AI)” in personalisation is one of the most essential aspects of user experience and engagement, especially in today's fast-changing digital arena. This study aims to unravel the impact of AI-driven personalization on trust and retention in digital payment systems, specifically focus on personalization's influence on consumer trust and retention in digital payment systems. The data has been collected using data collection techniques applicable to quantitative research design and for data collection, a structured questionnaire has been used and the data collected from 150 digital payments users of Uttar Pradesh. A regression analysis in SPSS 27 was used to test the relationships. Overall, the results show that personalization based on AI has a significant and positive impact on consumer trust and on the intention to use the service in the future. Tailored recommendations, customized services and smart user experiences drive user trust, satisfaction and loyalty of digital payment providers. The study's findings emphasize the critical role of product design strategies that integrate the responsible use of AI and data privacy and security measures in helping to maintain consumer engagement and trust.