The Swift progression of artificial Intelligence (AI) has resulted in extensive use in numerous customer–oriented application, including tailored recommendation, chat bots, and decision assistance systems. Even while these AI powered systems have shown remarkable potential, end users frequently lack insight into their inner working, which raises question around trust and transparency. This paper examines the determinants of consumer trust in AI-driven payments systems and proposes strategies for transparency, security and user education. The findings highlights how crucial user education, strong security measures, and clear communication are to gaining the trust of consumers. The study’s results have major implications for businesses and organization seeking to implement AI-driven payment systems, emphasizing the need for a multifaceted approach that addresses transparency, security and user education. The paper outlines common threats and vulnerabilities, critiques traditional security measures, and identifies challenges. Ethical and privacy concerns related to AI are also discussed. The paper concludes with insights into future AI trends, predictive analytics, and their role in evolving payment systems, offering key implications and recommendations for further research.