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Exploring Consumer Perceptions of Technological Innovations and Payment Systems in China-Pakistan Cross-Border E-Commerce: A Hybrid Sem and AI-Driven Approach
Cross-border e-commerce (CBEC) is reshaping global trade, yet disparities in technological readiness hinder its uniform adoption. While China has established an advanced digital ecosystem through artificial intelligence (AI), secure logistics, and digital payments, Pakistan lags behind due to low digital trust, reliance on cash transactions, and infrastructural constraints. This study explores Pakistani consumers’ perceptions of technological innovations and payment systems in China–Pakistan CBEC, addressing barriers of trust, security, and digital payment adoption. Building on the Technology Acceptance Model (TAM), this research integrates Trust in Technology (TR) and Digital Payment Preference (DPP) to extend its explanatory capacity. A hybrid methodology combining Structural Equation Modeling (SEM) with AI-based techniques was employed. Data were collected from 450 Pakistani consumers experienced in CBEC platforms such as Alibaba, Daraz Global, and AliExpress. SEM tested hypothesized relationships among Perceived Usefulness (PU), Perceived Ease of Use (PEOU), TR, DPP, and Behavioral Intention (BI). Complementing this, AI-driven clustering and Natural Language Processing (NLP) identified consumer subgroups and thematic patterns in qualitative responses. Findings indicate that PEOU significantly influences PU and TR, both of which strongly predict BI. DPP emerged as a critical determinant of adoption, mediating the link between PEOU and BI. AI clustering revealed distinct consumer profiles: risk-averse users reliant on cash, digitally literate adopters embracing mobile wallets, and transitional users shaped by social influence. Sentiment analysis further emphasized concerns about fraud, payment security, and weak regulatory enforcement. This study contributes by enhancing TAM with trust and payment constructs, offering a more nuanced lens for adoption in emerging economies. Practically, it provides insights for policymakers and businesses to promote CBEC adoption through secure payment systems, localized trust-building mechanisms, and AI-enabled personalization strategies tailored to Pakistani consumers.