Influence of AI-Enabled Digital Payment Systems on Mental Accounting Among Gen-Z

Abstract : Artificial Intelligence (AI) plays an important role in finance, especially in digital payment systems, which are taking over cash as the de-facto payment mode, mainly among Gen-Z. Mode or source of payment can impact the cognitive process underlying spending – mental accounting. This study aims to ascertain whether the features of AI-enabled digital payment systems used by Gen-Z have an influence on mental accounting behaviours exhibited by them. Data was collected from 100 respondents selected using convenience sampling, through a self-structured questionnaire administered online. It was found that majority of the respondents preferred mobile payment apps and that there was a positive correlation between the variables. The results of this study underline the importance of AI in digital payments scenario, and is of particular use to AI developers and consumers.