Why Users Keep Using Mobile Wallets: The Mediating Role of Trust and the Moderating Role of AI Transparency

Abstract

The study is aimed at determining the reasons for continuance among users of mobile banking/wallet applications in Pakistan by integrating post-adoptive beliefs with trust, technologically intelligent mechanism boundary conditions. The researchers adopted a quantitative-deductive approach within positivism and collected data using structured questionnaires from 350 respondents who were users of mobile banking or wallet applications. Data were analyzed through SmartPLS using PLS-SEM. Results revealed perceived usefulness to have a highly significant positive influence on continuance intention as well as an increased level of trust significantly strengthening app trust which has its own strong positively significant effect on continuance intention thus making perceived usefulness strongly mediated by Trust forming Perceived Usefulness→Trust→Continuance Intention path way however weak AI transparency does not significantly moderate Perceived Usefulness-Trust relation nor conditional indirect effect(moderated mediation) supported, Overall, this implies that transparency about AI does not play a large role in building contextual trust toward the Pakistani m-banking ecosystem; rather, it is user perceptions of value added and trust which remain extremely important for retaining users within Pakistan’s mobile banking landscape. The study adds to continuance intention literature by explaining a mechanism-based explanation of retention and provides practical guidance for banks as well as fintech providers to prioritize usefulness & trust-building strategies to reduce churn.