CONSUMER TRUST AND ADOPTION OF AI-ENABLED DIGITAL PAYMENTS: THE ROLE OF SECURITY, PRIVACY AND PERCEIVED RISK

Abstract

Artificial intelligence (AI) has become an important part of digital payment systems, supporting fraud detection, transaction monitoring, risk assessment and customer support. AI-enabled payments can provide speed, convenience and additional security, but consumers may also be concerned about privacy, data protection and financial risk. This paper examines how perceived security, privacy concerns and perceived risk influence consumer trust and the adoption of AI-enabled digital payments. It develops a conceptual framework in which security perceptions are associated with trust, while privacy concerns and perceived risk may influence adoption and continued use, and it proposes a survey-based methodology and measurement constructs for empirical testing. The paper also highlights transparent data practices, effective security mechanisms, consumer awareness and grievance redressal as important areas for building confidence in AI-enabled digital payments.