Exploring the Role of AI Personalization, Embedded Finance, and Gamification in Influencing Digital Wallet Users Buying Behavior in Western India

Abstract

Digital wallets have rapidly evolved into multifunctional platforms that go beyond payments to offer features like AI-based personalization, embedded financial services, and gamification. These innovations are designed to enhance user experience and potentially influence consumer buying behavior. This study explores whether these features have a measurable impact on the buying behavior of digital wallet users in the Western region of India.

A structured questionnaire was distributed among 1,100 respondents across Maharashtra, Gujarat, Rajasthan, and Goa. Statistical tools such as multiple regression, ANOVA, and ANCOVA were used to analyze the effect of personalization, embedded finance, and gamification on user buying behavior. The findings reveal that none of these features demonstrated a statistically significant direct impact on consumer purchase decisions. While users engage with these features, they do not appear to drive actual buying behavior in a meaningful way.

These results suggest that while such features may enhance app engagement and long-term retention, other factors such as trust, perceived usefulness, or pricing—may play a larger role in influencing purchasing decisions. The study provides valuable insights for digital wallet providers, marketers, and fintech developers aiming to design user-centered features that go beyond novelty and contribute to actual behavioral outcomes.